Last modified: July 2020
Termination of a real estate purchase and sale agreement after registration is possible only in court. You can also do without a trial, but you need to know the subtleties that will allow you to “get around” the law without breaking it. Let's consider how to do this correctly, on what grounds you can cancel the transaction, what to do if the disputed housing was purchased with a mortgage, what documents will be needed, what is needed to go to court, where to file a claim, what state duty is paid and what to do after receiving a court decision .
What applies to real estate
According to Art. 130 of the Civil Code of the Russian Federation, real estate includes property the movement of which is impossible without significant destruction and impossibility of further use. This could be an apartment, a parking space, a garage, a plot of land, a room, buildings, structures, unfinished construction projects, or no plots. Aircraft and sea vessels subject to state registration are also considered real estate.
According to the law, the owner of real estate has the right to dispose of it at his own discretion: sell, donate, exchange, bequeath. But if there are several owners, during the sale you will have to give them the right of first refusal (Article 250 of the Civil Code of the Russian Federation). To do this, you need to notify them of your intentions. If they do not purchase the share being sold within a month, they can put it up for sale to third parties.
Important! The preemptive right does not apply to the purchase of a share allocated in kind. It concerns only the share of ownership.
Sometimes, after drawing up a purchase and sale agreement (hereinafter referred to as the PSA), the new or old owner has a desire to terminate it and return the housing or money. In practice this is not so easy to do. Let's consider what the grounds may be and what to do if the transfer of ownership has already been registered.
Is it possible to terminate a contract after registration without going to court?
It is impossible to terminate the contract after registration of ownership rights to the buyer. According to the law, the contract is considered fulfilled, and even if both parties agree to the return, they will have to go to court.
Registration is handled by Rosreestr, but documents can be submitted through the MFC. If terminated by agreement of the parties , the registrar will not accept it - he needs a court decision that has entered into force. Without a trial, you can refuse a transaction only before or during the registration process.
But there is another option. It is relevant if both parties agree with the return : the seller gets the property back, and the buyer gets the money. The parties can draw up a reverse purchase and sale agreement, indicating in it the price at which the property was originally sold.
You will not have to pay taxes , despite the fact that the seller has not owned the property for more than 5 years. He will not have any profit from the transaction, therefore, personal income tax is not subject to payment. It is enough to submit 3-NDFL and the initial DCT to the tax office to confirm the same cost of living space for both transactions.
It is important to know! For the return of property by issuing a new policy, the grounds are unimportant. The desire of both parties to the transaction is enough.
Example. A woman sold an apartment for 3,000,000 rubles. to his relative, planning to leave to live in another city. After some time, circumstances changed, and she decided to return the home. They agreed on this and issued a contract of agreement, according to which the former buyer, on the contrary, becomes a seller. The cost of real estate under the contract is RUB 3,000,000. In this case, no tax is paid.
If the new owner decided to sell the property to the former owner at a higher price - for example, for 3,200,000 rubles - she would have to pay personal income tax on the profit:
200,000 × 13% = 26,000 rub. – amount payable without tax deduction. Deduction of 1,000,000 rubles. would actually exempt from taxation.
Termination of the contract by the will of both parties
If both parties decide to terminate the contractual relationship, the termination procedure takes place by agreement between them.
The form of the document depends on the form of the original agreement, that is, if it is signed and agreed upon by the parties, then the denunciation agreement must be drawn up in a similar way. The heads of organizations or their authorized representatives have the right to sign such papers. Before terminating a contract, the denunciation document must provide the basis for termination (if its procedure is voluntary, then the basis will be the will of the parties), as well as the moment of termination of the fulfillment of contractual obligations. If there are unfulfilled or unfinished obligations, it is necessary to provide for deadlines for their closure.
Grounds for termination of the contract
If the parties cannot agree to conclude a reverse contract, they will have to go to court. You can’t do it just like that: you need grounds according to which the court will decide to recognize the contract as terminated.
What reasons could there be:
- Material breach of the terms of the contract by the buyer or seller;
- Significant change in circumstances.
Let's figure out what is meant by this.
Material breach of contract
A violation of the terms of the contract is considered significant when one of the parties to the transaction, whose rights were violated, is deprived of what it could count on when concluding the contract (Article 450 of the Civil Code of the Russian Federation).
For example:
- The DCP states that there are no registered citizens in the apartment, but it later turned out that there were still some. The new owner has the right to demand cancellation of registration pre-trial, and if the requirements are not met, go to court;
- The property was sold by installments, and the buyer does not fulfill obligations, violates payment deadlines;
- The new owner discovered shortcomings that were not warned about in advance, and several hundred thousand rubles will have to be spent on eliminating them.
Note: in practice, it is not easy to prove a violation of the terms of the contract in terms of property defects. It is important that they arose during the period the seller owned the property; he knew about them, but did not warn the buyer and did not reflect this in the transfer and acceptance certificate.
Significant change in circumstances
A significant change in circumstances refers to situations that, knowing about which the buyer or seller would never have entered into a transaction.
Here it is important to comply with several conditions simultaneously (Article 451 of the Civil Code of the Russian Federation):
- The party wishing to terminate the contract could not have predicted at the time of signing that these circumstances would occur;
- The circumstances could not be prevented;
- The DCP does not indicate that the risk of changes in circumstances is borne by the interested party;
- Execution of the contract on the previous terms would have entailed significant damage for the party, in which it would have lost what it could have claimed as a result of the transaction.
It is important to know! It is also difficult to challenge the policy in such a situation. All circumstances will have to be proven in court. In this case it will not be possible to return the property or money if the interested party could have guessed about the possible occurrence of a problematic situation.
For example , it will not be possible to challenge a contract with installments if the new owner has lost his job and cannot make payments. The judge will most likely say that the dismissal could have been predicted, so it is not grounds for terminating the deal. This also includes the receipt of disability by the payer.
Invalidation of the contract
There is another option - to invalidate the DCT on the grounds specified in § 2 of Chapter. 9 of the Civil Code of the Russian Federation. The consequence of the invalidity of the transaction is the return of the real estate to the seller, and the money to the buyer (Article 167 of the Civil Code of the Russian Federation).
What reasons could there be:
- The seller turned out to be an incompetent person whose incapacity was established by the court before signing the contract. Transactions on his behalf may only be carried out by a guardian with the permission of the guardianship authority;
- The property of a minor was sold without the permission of the guardianship authority;
- When signing the contract, the buyer or seller was subjected to moral or physical pressure;
- At the time of the transaction, one of the parties was intoxicated and could not fully understand the consequences;
- The agreement was drawn up in violation of legal requirements or under the influence of misconception;
- The property sold was acquired during marriage, and the seller did not take the notarial consent of the spouse for the sale. It is mandatory even if the spouses are divorced, but the property is not divided;
- The DCP was concluded to cover another transaction.
The seller, buyer or a third party protecting the interests of a citizen has the right to demand that the policy is invalidated. For example, a guardianship authority, if we are talking about the illegal sale of real estate of a minor or incapacitated person.
Cancellation of an employment contract: explanation of the concept
Article 61 of the Labor Code of the Russian Federation gives the right to cancel an employment contract. The acceptance agreement will be considered not concluded. This means that its provisions are not binding on the parties. The procedure is possible as long as the employment relationship has not actually begun, that is, the employee has not fulfilled the terms of the contract.
An employee is considered to have assumed duties in the following cases:
- he attended the briefing;
- completed an internship, practice;
- attended organizational events, meetings;
- was present on the first working day.
In case of cancellation, both parties are deprived of the rights and obligations acquired after signing:
- The employer does not provide the necessary premises, tools, and does not transfer wages and taxes. It does not require the subordinate to fulfill the conditions stated upon acceptance.
- The employee is relieved of official duties and does not require wages or transfers to tax authorities.
It is recommended to pay attention to the differences between the process of invalidating a contract and its termination.
Cancellation | Termination |
Possible in the only case: a staff member misses the first day of work. | There are a number of reasons. |
The law is designated as the right of the employer. | Any party becomes the initiator. |
The employer and the subordinate have no rights or obligations towards each other from the moment the agreement is concluded. | Mutual obligations cease to be valid only after termination. |
There is no need to fill out a work book. | Data on admission and reasons for dismissal are recorded. |
To cancel, it is enough to document the fact of the omission. | Termination must be carried out strictly in accordance with the procedure established by law. |
The employer is not required to re-enter the contract if an error has been made in the process. | In the event of an illegitimate dismissal, the employee will be reinstated or reimbursed wages by court decision. |
If the reason is proven to be unfounded, the court will oblige the agreement to be renewed. | An illegal reason for dismissal will entail satisfaction of the subordinate’s claim: from payment of monetary compensation to reinstatement. |
If you have a mortgage
Challenging the DCP for a mortgaged apartment is becoming increasingly more difficult, because here a third party is involved - the bank with which it is pledged. Without his consent, the property cannot be given away, sold or changed, but for some creditors, notification of the planned transaction is sufficient.
There are several options here:
- Avoid trial. The former owner returns part of the money he paid to pay off the mortgage to the current (buyer), who closes the loan. Before this, a preliminary PrEP is concluded. After the rest of the amount is given, the main policy agreement is concluded;
- Go to court. If the claims are satisfied, the property will be returned to the former owner, and he will pay money to the bank account to pay off the mortgage.
It is important to know! The final outcome depends on the circumstances of the particular case and the opinion of the creditor.
How to terminate a real estate purchase and sale agreement through the court: step-by-step instructions
To terminate a real estate purchase and sale agreement, you need to file a statement of claim with the district or city court at the defendant’s place of residence.
How it all looks step by step:
- The plaintiff collects documents confirming the grounds for termination, then draws up a statement of claim referring to them.
- A copy of the application is sent to the defendant, preferably by Russian Post: the court will need a document confirming receipt of the claim by the other party.
- The application and other documents are submitted to the court.
- The judge schedules a preliminary hearing, at which the case is prepared for trial (Article 152 of the Code of Civil Procedure of the Russian Federation).
- During the proceedings, the parties' arguments are heard, evidence is studied, and witness testimony is given.
As a result, the judge alone makes a decision; it comes into force in a month. Its copies can be obtained within 5 days after acceptance in final form, they are issued to all participants in the process, one is sent to Rosreestr. You need to come with your copy and submit an application for re-registration of ownership based on a court decision.
Documentation
When going to court, you will need a statement of claim, a terminated contract, a notice of delivery of the application to the defendant, and a passport. If a real estate examination was carried out - an expert opinion. Any documents related to the case will be useful.
State duty
The state fee is 300 rubles , it is paid by the plaintiff when submitting the application. If the demands are satisfied, legal costs will be recovered from the defendant.
Time limits for going to court and resolving the case
You can go to court within three years from the date of registration of property rights. The case itself is considered and resolved no later than two months from the date of filing the application. But the time frame may be delayed if there are grounds for suspending production.
Termination of agreement with the bank
Applying for a loan is not a problem now, but how to terminate the agreement with the bank? Despite the labor intensity and rather large time costs, this can be done in two ways.
The best option is denunciation by agreement of the parties. Here, as a rule, there are no special restrictions, but such termination may entail some consequences (compensation for lost profits or damages). In this case, the parties sign a written agreement with the specified amount and payment terms.
In order to terminate the agreement unilaterally, it is necessary to go to a civil court, since this is the only way to terminate the agreement with the bank. But this happens only in special cases (for example, the bank violates its obligations).
The agreement can also be canceled at the initiative of the bank. This situation arises when the client hides information about the quality, loss or reduction of the collateral, violates the procedure for repaying the debt, or has already spent funds for other purposes. Denunciation may also occur if the client’s financial situation has become worse. When collaborating with a legal entity, the reason for termination is reorganization, bankruptcy, or liquidation of the enterprise.
Arbitrage practice
It is difficult to terminate a contract of real estate in court, but with proper preparation for the proceedings and the ability to substantiate your position, it is quite possible.
Here are some examples of real decisions in cases in which claims for termination were satisfied in full:
- Decision No. 2-1309/2018 2-254/2019 2-254/2019(2-1309/2018;)~M-1159/2018 M-1159/2018 dated November 27, 2019 in case No. 2-1309/2018 .
- Decision No. 2-1273/2019 2-1273/2019~M-1242/2019 M-1242/2019 dated November 27, 2020 in case No. 2-1273/2019.
- Decision No. 2-4283/2012 2-4283/2012~M-3949/2012 M-3949/2012 dated November 19, 2012 in case No. 2-4283/2012.