Federal Law No. 214-FZ: the essence of the law on participation in shared construction, the current version

Recently, it becomes extremely relevantthe acquisition of real estate by concluding a shared agreement. Legislatively regulates the process of participation in shared construction No. 214-FZ. The essence of the law will be discussed in detail in the article.

On the subject of regulation of the Federal Law

The introduced federal law was created forregulation of relations, closely related to attracting financial resources of citizens for the construction of apartment buildings. Involvement of money investments takes place on a shared basis: in fact, every candidate for housing gets a "share" in the construction of a house.

Shared construction is, it would seem, verysimple, but at the same time very ambiguous process. In recent times, cases of deceit of citizens registered as holders have become more frequent. In order to prevent such machinations, 214-FZ was developed. The essence of the law is very simple: strict fixing of norms that would allow for qualitative implementation of the processes of construction of a shared character.

About the developer and dwelling

In Article 2 of the normative acttwo basic concepts are fixed, which are used in all subsequent provisions of the law. The first term is a "builder". According to the law, developers refer to legal entities that own a plot of land on which to build a residential facility. The developer receives a special permit for development, and then begins the process of attracting finance.

The object of shared construction is alwayspremises of residential or non-residential type, which is subject to transfer to construction participants on a shared basis. It should be noted that such facilities can not be enterprises that are of an industrial nature.

The essence of the law 214-FZ, therefore, is to consolidate the rules relating to shared construction.

On the right to attract finance

It has already been noted above that the process of attractingmoney can not be started without obtaining a special permit. What is the reason for this? It is worth remembering the essence of the law 214-FZ. It is about minimizing the cases of fraud and financial fraud. That is why in Article 3 of the normative act the norms are fixed, according to which the developer is able to raise money only after completing the declaration for construction, and also after the registration and registration of a number of land management measures. The developer is obliged to answer the date of sending the project declaration, as well as its requirements. Only in this case it will be possible to begin the process of attracting the funds of equity holders.

Here, too, is the following requirements for developers:

• Installment capital must be fully paid;
• the developer should not be subject to liquidation as a legal entity;
• there should be no decision of the arbitration court to suspend the developer;
• the developer should not be in the register of unscrupulous developers;
• the developer has no arrears in taxes, debts or fees.

Further, it is necessary to talk about a special contract that is concluded between developers and equity holders.

Contract for participation in construction

Article 4 of the considered normative actcontains quite detailed provisions concerning the conclusion of the contract. It is worth noting that the essence of the law 214-ФЗ is the strict consolidation of all possible legal processes relating to construction on a share basis.

According to the law, one party to the contract is obligated tothe specified time to build a residential object, and the other party to pay the price specified in the contract in a timely manner. What elements should a contract contain?

• First, this is the definition of a specific construction object, as well as all information about it.
• Secondly, the construction time and price of the contract.
• Another important place in the contract is occupied by guarantees and ways to ensure the developer of its obligations.

About terms and guarantees

What is the essence of 214-FZ? The considered act is intended to fix the maximum number of norms that would make the process of shared construction as efficiently as possible. Section 6 of the law refers to deadlines. Thus, the developer’s responsibilities include the timely transfer of the construction object to real estate investors. In case of breach of contractual obligations, the developer is obliged to pay the affected parties to the transaction the amount of the three hundredth part of the refinancing rate, which is set by the Russian Central Bank. The developer has the right not to pay interest only if the other party refused to sign the deed of conveyance.

The developer is obliged to warn co-investors aboutpossible problems. So, if there is no possibility to complete the construction of the facility by the deadline, then no later than two months before the date specified in the contract, this should be known to all parties to the contract.

About the requirements under the contract

For poor quality performance or fullnon-performance of their duties on one or another party to the contract may be liable. In accordance with Federal Law No. 214, the essence of which is considered in this article, the guilty persons will have to pay fines, penalties or penalties.

Article 11 refers to the assignment of rights under a contract. It is possible only after the participant in the shared construction pays the price of the contract, or transfers the debt to the new participant in the construction.

When obligations under the contract can be consideredperformed? According to Article 12 of the Federal Law in question, only after the full payment of the established amount and the signing of the transfer document.

About the project declaration

In the whole process of equity construction considerablethe role is played by one important document. In Article 19, it is referred to as the project declaration. This document includes all the necessary information about the developer and the construction project. Some provisions of the project declaration copies the contract of participants in shared construction, but only the most important ones. Basically, the declaration contains purely technical data. All of them must be certified by the executive authority of the relevant region even before the developer concludes an agreement with the first shareholder.

It is also worth noting that any consequenceslegal nature for the developer himself is possible only after verifying the facts from the project declaration. The form of the document in question is established by the authorized executive body of the subject of the Russian Federation.

The essence of 214-ФЗ "About participation in shared construction" (the current edition of 2013) is also to reveal the purpose of all relevant documentation.

About state regulation

State control is especially important in suchlarge area, as the acquisition of real estate. In Russia, such control manifests itself as a combination of individual functions. This is what Article 23 indicates:

• the right to request from developers all the necessary documentation and information on the progress of work;
• the formation and publication of regulatory acts relating to share construction;
• development of individual methodological documents and recommendations on issues of state control in the field of building an equity type, etc.

So what does Federal law contain?214-FZ? The essence of the law is simple: the consolidation of norms, in accordance with which the occurrence of difficulties in the field of shared construction would be practically impossible.