Termination of the contract: unilateral refusal of the shareholder to execute the equity participation agreement

Is it possible to terminate a share participation agreement?

It is possible to terminate the contract if there are confirmed reasons. According to Article 9 214-FZ, there are 4 variations of termination of a shared construction contract. These include:

• unilateral termination of the DDU at the initiative of the developer;
• unilateral termination of the DDU at the initiative of the shareholder;
• bilaterally, i.e. by agreement of the parties;
• through the court.

If the DDU is terminated in any situation, the developer makes a refund, i.e. the money is returned to the buyer after termination of the contract. The construction organization pays penalties and interest for the use of the shareholder’s money only when the rules and laws in relation to the citizen are violated. Upon termination of the contract, this operation must be formalized in Rosreestr. Is it possible to terminate the DDU after registration?

Important! The contract is terminated before the Transfer and Acceptance Certificate is signed. Once it is registered, the obligations are considered fulfilled.

As a result of termination, litigation may begin, especially when the organization has gone bankrupt and it is necessary to return its funds. Judicial practice shows that more often the court sides with individuals if they have all the reasons to close the contract, and their written confirmation (not only documents, but also photographs of the frozen construction or changed layout are attached to the claim).

Risks

There are risks for citizens when terminating a pre-employment contract:

• waste of precious time;
• waste of money;
• loss of apartment.

Before terminating the contract with the developer, you need to find out whether the developer has money after the transaction in order to return it for the contract and terminate the DDU. There are cases when the shareholder waives the right of pledge on the completed project, and the developer at this time becomes bankrupt, so he has no money to return. If, for example, a citizen did not terminate the contract, but waited until the house was completed or the organization was declared bankrupt, then it would be possible to return the money through the court.

Termination of the DDU unilaterally at the initiative of the shareholder

Upon termination of the contract, the construction organization does not have the right to request payment of any fines from the buyer, in accordance with the regulations of the Law on the Protection of Consumer Rights, Art. 32. Also art. 333.33 of the Tax Code of the Russian Federation states that for unilateral and judicial procedures there is no need to pay state duty.

The developer may propose not to liquidate the agreement, but simply assign its rights to the share to another individual, i.e. to the buyer (often these are relatives or employees of the developer). The advantage of this method is that funds are transferred immediately at the time of the transaction. But there is also a minus - this is paying tax on the sale of an apartment of more than 1,000,000 rubles, if it has been owned by the buyer for less than 3 years.

The agreement can be liquidated at the request of the shareholder:

1. Delay in delivery of the object by more than 60 days.
2. The quality of construction has been compromised.
3. The obligations of developers were violated in accordance with Part 2 of Article 7 and Part 3 of Art. 15.1 Federal Law No. 214.

Procedure

How to terminate a child care agreement? DDU should be eliminated as follows:

1. Draw up an application for termination of the equity participation agreement at the initiative of the shareholder and send it to the developer. It must contain: the reason for termination (Federal Law No. 214), calculations, details for the developer to transfer money or the date of the citizen’s personal visit to the organization for payment.

The termination application form (notice) can be downloaded here. A sample notice to download here.

1. If the developer does not fulfill your conditions within 20 days, then you need to write a lawsuit and send it to the judge. All evidence must be attached to the statement of claim, i.e. reasons for closing the contract.

Documentation

If the agreement can be terminated voluntarily, then it is necessary to submit the following documentation to Rosreestr, which is usually submitted by the shareholder:

• identification;
• DDU.

And if you have to go through a courtroom, then the following must be attached to the claim:

• copy of DDU;
• papers confirming violations by the construction organization;
• if there is a refusal from the construction organization, then a copy of it;
• calculation of losses and moral damage;
• paid state duty.

Deadlines

From what moment is it considered terminated? Many people think when this action will be registered by the state is incorrect. The document is considered terminated from the date the shareholder sends an application or notice of termination of the shareholder to the developer (sample). After 20 days, the citizen can appear at Rosreestr and officially confirm the liquidation of the document, i.e. register the closure of the preschool.

Termination of DDU

judicially. termination of assignment under an equity participation agreement upon termination of the DDU and Metro Legal relations of the parties upon termination of an equity participation agreement. by agreement of the parties (here, as a rule, there are no difficulties); termination of the assignment to the building authority for termination of the building block and metro When the developer creates a shared construction project with a deviation from contractual terms and/or mandatory requirements (project documents, technical and urban planning regulations), which led to a deterioration in the quality characteristics of the facility, as well as in the presence of shortcomings, in as a result of which the object becomes unsuitable for use in accordance with the contract. If such deficiencies are identified, the second party to shared construction has the full right to demand from the developer: to eliminate the deficiencies free of charge, within a reasonable period of time; reduce the contract price in proportion to the identified deficiencies; fully reimburse the costs incurred to eliminate the defects. When, even after sending a written appeal to the developer, the latter does not respond in any way, or the parties have not come to an agreement on this issue, or the developer has not eliminated the deficiencies within a reasonable period of time, then the participant in shared construction whose rights have been violated has the opportunity to unilaterally terminate the agreement equity participation, ceasing to fulfill obligations on its part; If the developer exceeds the deadline for transferring the shared construction project for a period of two months; In case of a significant violation of the requirements for the quality of the property. For example, the presence of a corresponding technical conclusion can be considered as evidence here. The same points as a statement about the curvature of the walls and the presence of cracks are not considered to have legal significance; When the interested participant in shared construction is not notified by the developer and his guarantor no later than one month before the end of the guarantee and the developer has not concluded another guarantee agreement within 15 days from the date of its termination. .

Termination of DDU by agreement of the parties

It is usually not difficult to terminate a DDU with the consent of both parties. The only thing you need to pay is a state fee at Rosreestr in the amount of 350 rubles. Typically, the costs are borne by the developer, and in principle, those who wish to do so are paid for - either the buyer or the construction organization.

Procedure

1. One party notifies the other in writing of the basis for terminating the contract.
2. If the decision is positive, a date and location are set for drawing up the agreement documents.
3. Draw up an agreement to terminate the DDU by agreement of the parties ().
4. They discuss the time and principle of how the money is returned: termination of the contractual agreement by agreement of the parties involves the return of the money.
5. Formalize the termination of the agreement for participation in shared construction with the registration authorities.

Documentation

Rosreestr or MFC prepares:

• agreement (it is better to provide it in printed form on a computer, a simple written form is suitable, it is also necessary to have the signatures of both parties);
• ID card of the shareholder;
• payment document confirming payment of state duty;
• other papers if necessary for the registration chamber.

Deadlines

As for the timing of termination of the contract with the developer, they are discussed by the parties. Rosreestr reviews the documents within 7-10 days, after which both parties come with a receipt and pick up the finished document confirming the fact of termination of obligations.

Termination of a property shareholder

collection of interest for the use of funds, calculated according to the rules of Federal Law No. 214-FZ of December 30, 2004; interest upon termination of the DDU upon termination of the DDU by the shareholder and the metro, subject to termination of the DDU on the grounds of Part 1 of Art. 9 FZ-214 (culpable actions of the developer) interest is calculated on the basis of Part 2 of Art. 9 FZ-214 as follows: . did not fulfill one of the following requirements: sample termination of a contract for shared participation in construction upon termination of a joint venture by the shareholder and the metro. In connection with this, the results of the court decision directly depend on your choice in favor of one or another lawyer. .

Termination of DDU at the initiative of the developer

The developer has the right to terminate the contractual relationship if:

1. The shareholder is overdue for payments by more than 60 days if the payment is a one-time payment.
2. The citizen did not deposit the money according to the established deadline if payment is made in installments. Usually the contractual relationship is terminated after there is no payment within 60 days.
3. Payments were missed 3 times during the year.

Procedure

According to Federal Law (FZ) No. 214, the developer has the right to liquidate the contract on his own initiative. If the above reasons occur, you need to:

• Send a registered notification to the shareholder with a request to repay the debt and the consequences of non-payment.
• After a month, if the shareholder has not taken any action on the DDU, the developer can terminate the contract.

Documentation

• DDU;
• application for registration of the agreement;
• passport (for a proxy plus power of attorney);
• consent of the spouse to purchase a “share”;
• collateral documents for a mortgage;
• design documentation;
• paid state duty.

Deadlines

If the organization sent a notice of termination of the DDU in case of non-payment, and a month has passed since sending, then the document may be considered terminated. After submitting the registration papers, they wait 7-10 days and receive documentation of the liquidation of the contract.

Termination of residential property by the developer

The developer, before notifying the refusal to fulfill obligations under the DDU, must send a warning to the participant in advance about the need to repay the amount of debt and the corresponding consequences of failure to fulfill this requirement. Under these circumstances, the developer has the right to terminate the contract no earlier than 30 days after sending a warning - Part 3 of Article 9 of Federal Law No. 214-FZ of December 30, 2004. the practice of terminating the DD by termination of the DD by the developer and the metro The developer will then pay off the entry in the Unified State Register himself, since he needs it more than you. . Upon termination of the equity participation agreement, the funds are returned to the participants in such construction. the procedure for terminating the agreement upon termination of the agreement by the developer and the metro. Thus, after the conclusion of the agreement, it is impossible to return at any time the money paid under it in the absence of guilty behavior of the developer, even if the shareholder does not make a claim for interest for the use of funds. .

Termination of a share participation agreement in court

It is possible to terminate an equity participation agreement in court if the obligations of one of the parties to the contractual relationship are not fulfilled, if the developer:

• stopped or suspended the construction of the facility;
• the house design has been changed;
• the purpose of the building has changed;
• other obligations according to the clauses of the agreement.

Procedure

1. Send a registered notice to the construction organization.
2. File a lawsuit. It reflects information about the developer; data from an individual’s passport; grounds for termination of the contract; demands for refund; an application for payment of interest for the use of a citizen’s funds; compensation payments; upon termination of the contractual relationship with the mortgage, indicate all losses incurred (loan interest, insurance premiums). the statement of claim can be found here.
3. The court makes a decision.
4. The court decision is executed by the developer.
5. If the court decision is not executed, the plaintiff has the right to apply to the court with an additional demand (including for the recovery of interest and damages).

Documentation

The following documentation is provided to the court:

• copy of the agreement;
• evidence of non-fulfillment of the developer’s requirements;
• if available, a copy of the refusal to terminate the DDU unilaterally;
• calculation of penalties;
• paid state duty.

Deadlines

Funds must be returned to the buyer within 10 business days. If they are not received within these days, the citizen has the right to appear in court again.

Termination of a contract for participation in shared construction

Thus, the developer may refuse to fulfill the contract unilaterally in the following cases: termination of the agreement for the building of a residential building; termination of the agreement for participation in shared construction and metro 1. The cost of the apartment in full. . The contract is considered terminated by the developer from the date of sending the notification in the following cases: termination of the DDU court for termination of the agreement for participation in shared construction and metro In what cases is the contract considered terminated? If one party unilaterally refuses to fulfill the terms of the contract, the document is considered to be terminated from the moment a notice of such termination is sent to the second party to the transaction. The notification must be sent via mail, using a registered letter and with a list of attached documents. What are the legal consequences of termination of an agreement initiated by a participant in shared construction in pre-trial proceedings? The developer, upon termination of the agreement in connection with the previously stated circumstances, within 20 days (working days) from the date of termination of the agreement, must return the funds contributed by the participant in shared construction, paid by the latter within the framework of the contractual terms. In addition, pay interest accrued on the designated amount for the use of the specified funds in the amount of 1/300 of the key rate (its current size is 10 percent) of the Central Bank of the Russian Federation, which is valid on the day of fulfillment of the contractual obligations to return funds paid by the participant. These interests are accrued from the day when the DS participant contributed funds or part of them towards the agreement price specified in the contractual terms, until the date of their return by the developer to the DS participant. When the DS participant is a citizen, the indicated interest must be paid in double amount. .

Peculiarities of termination of DDU with a mortgage

Today, most real estate transactions involve mortgage funds. It turns out that a third party is involved, in whose interests the whole process is - the bank. As a rule, the DDU is always bank collateral, so the borrower has no right to carry out any transactions without the consent of the bank. Upon termination of the DDU, the court recovers from the construction organization the interest that the citizen paid to the bank as interest on the loan, this also applies to compensation or recovery of losses.

To terminate a DDU with a housing loan you need to:

1. Notify the banking institution about the termination of the DDU;
2. Write an application for early repayment, because the bank is recalculating the interest (the borrower can calculate the approximate amount himself by using a mortgage calculator when terminating the tenancy agreement online);
3. The notification indicates 2 accounts: the shareholder, so that his own funds are returned to him, and a bank account for the return of the loan money.
4. In court, the bank acts as a third party, i.e. A bank employee must also be present at the meeting.

It is possible for all funds to be transferred to one person (borrower or bank), but only if such conditions are reflected in the mortgage agreement. Sometimes the credit is made to the account of an individual, and only then he independently pays off his debt at the bank. A DDU with a mortgage must be registered with Rosreestr, as well as its termination. In addition, the mortgage record will need to be paid off.

The DDU is terminated upon provision of:

• passport;
• if there is an agreement;
• if unilateral termination, notice;
• notarized court decision.

The mortgage encumbrance is removed using the following documents:

• certificate of debt repayment from the bank;
• general statement of the two parties;
• loan agreement;
• mortgage with stamp repaid (photocopy and original);
• court decision to close the loan.

Termination of DDU 214 FZ

If the developer has no desire to return the funds voluntarily, the participant in shared construction will need to resort to the help of the bailiff service. To do this, he needs to obtain a writ of execution from the court and submit it to the territorial body of the FSSP of Russia at the legal address of the developer, its branch or the location of the property of such a developer. sample termination of a pre-employment contract according to termination of a pre-employment regulation 214 FZ and metro If there are grounds to refuse the contract under Part 1 of Art. 9 FZ-214, concluding an agreement to terminate the DDU for the return of funds can only do harm, because you will lose the opportunity to recover interest on the use of your money in court. .

Procedure and terms of money return

A citizen has the right to terminate the DDU and return the money at any time, often there are good reasons for this, such as:

• serious problem in construction;
• deficiencies in building codes and living conditions;
• The deadline for obtaining the certificate has expired.

Federal Law 214 regulates the procedure and terms for the return of money upon termination of the DDU and, in accordance with clause 2 of Article 9 of the Federal Law, funds under an agreement terminated on a unilateral initiative are transferred within 20 days. According to the court, the developer is given 10 days to return the money after a court decision is made. That is, the period also depends on the time of consideration of the claim by the judge or the application to the MFC or Rosreestr.

Termination of the contract

copies of a set of documents for the court (including the statement of claim) according to the number of participants in the trial; claim for termination of a share participation agreement for termination of the agreement of preschool education and metro for compensation for moral damage. . The parties determine the procedure and timing for the return of funds. grounds for termination of an equity participation agreement for termination of a preschool and metro agreement 1. Indicate the legal basis for termination (it is most reliable to refuse the agreement on unconditional grounds, i.e., according to clause 1, part 1, article 9 of the Federal Law -214). .