Ppa What is it in Real Estate

PPA is the transfer of the right to use a leased commercial property to a third party, and this can be an extremely reasonable option for dealing with real estate. We put it on the shelves.

A tenant who no longer wishes to pay rent for the premises can obtain a written agreement from its owner and assign such rights to another individual (legal entity). If the possibility of rehiring was indicated in the documents initially, the owner’s permission is not required.

The procedure is similar to a purchase and sale transaction, but the subject of the agreement here is not the real estate itself, but the rights of ownership and use. The latter become an independent object with which legal transactions can be made.

The assignment of lease rights for offices, trade pavilions, warehouses/production workshops is a common practice used by the modern business community of Moscow. Moreover, if the previous tenant rented the space on preferential terms, the current one can also take advantage of them. This is beneficial for developing enterprise organizations, as well as beginning entrepreneurs who want to open a retail outlet, office, or their own production in a prestigious location, but are still limited by a small budget.

Of particular interest is the rehire of state (municipal) real estate. The rate here is usually much lower than in the case of premises rented by private owners.

Main features

PPA: what is it? This question is often asked by businessmen who choose affordable non-residential real estate, considering different options. Let us briefly list the nuances of the procedure.

Assignment of PA to a commercial organization - exclusively on paid contractual terms (donation is prohibited by law).
Long-term and short-term rental of non-residential premises.
State property is transferred only after an auction (competition).
If the contract is concluded for a period of more than 12 months, the law requires that the relevant information be entered into Rosreestr.
Receipt of rental payments by the owner is subject to tax.

Differences between rehire and sublease

PPA:

A - Full gear

B - All obligations (including debts) pass to the legal successor

C - Payment to the direct owner

Sublease:

A - Partial transfer

B - The rent debt remains with the tenant (unless the parties agree otherwise)

C - Payment to the tenant, who then transfers the agreed amount to the owner of the premises

Decor

The contract, concluded in any form, contains the following information.

1 — Detailed information about the subject and participants of the transaction being concluded.

2 — Responsibility of the parties, procedure for violating the conditions (amount of fines, pre-trial resolution of conflict situations, unilateral termination mechanism).

3 — Amount of monthly (quarterly, annual) fee. Frequency, order, methods of application.

The legislative norms and rules of the PPA are explained in detail in Article 615 of the Civil Code of the Russian Federation.

What is the sale of leasehold rights?

In business practice in the modern world, we encounter such a concept as the sale of rights. The rights to rent and use property are no exception. A transaction is the sale of a leasehold right to another person for a fee. It is often confused with sublease, when the tenant transfers the lease rights to someone else.

When selling, another tenant appears , the old tenant leaves the obligation;
When selling rights, the entire scope of rights and obligations is transferred to the purchaser of the lease;
Sublease exists through an agreement between the tenant and the owner of the property, within the framework of the lease agreement . Subletting may be prohibited, require permission, or arise based solely on the decision of the tenant;
If the lease agreement is terminated, the sublease is automatically terminated , the subtenant is responsible to the tenant, and the same is responsible to the owner of the property.
The sale of rights most likely becomes a fact for the property owner; the property owner either accepts the transaction or remains without a tenant. Even if compensation for damages is provided for early cancellation of the rental, it still will not cover all losses.

PPA: what is it and what are the benefits?

The abbreviation PPA - from English Pay Per Action is translated as payment for action. You can also find the designation CPA - Cost Per Action. For the client, this type of payment is the most convenient in terms of efficiency and budget savings. When you pay for clicks, you can't predict in advance what results you'll get. It's like sending someone to the store without telling them exactly what you need. Yes, they will definitely bring you something. But there is no guarantee that this is what you wanted. And if you make a shopping list in advance, you know exactly where your money is going. According to the PPA model, you pay for those users who are interested in your offer and have confirmed this with targeted actions.

CPL is the direction of an affiliate program or offer from the PPA model. There are two such directions: CPL - Cost Per Lead - payment for leads) and Cost Per Sale - payment for sales. A lead can be registration on the site, filling out a questionnaire form. With CPL, you pay per sale when a user buys something from you. This is especially true for online stores.

Disadvantages of PPA

Flaws:

Assignment of lease rights becomes a separate business, and attractive properties begin to rise in price;
The sale of lease rights as a business gives rise to competition between those wishing to obtain a tempting property;
The owner of the property may agree to the sale subject to an increase in rent;
The risk of purchasing a problematic property due to hidden defects and being responsible for them to the owner of the property;
Assignment is possible only with the consent of the property owner;
The need to spend money on a notary (if the original contract was drawn up with him) and re-registration (if the original contract was registered);
Recognition of the lease agreement as invalid leads to the recognition of the assignment of rights as invalid;
There are some difficulties in connection with preparing tax reports and calculating the tax that will need to be paid in the future.

Advantages and disadvantages

Since this method is not a reliable method of contraception, the following disadvantages are quite expected:

Many will be disappointed that coitus interruptus is an unreliable and quite dangerous method.
Men must constantly control themselves before orgasm, which is why some fail to achieve full release.
A woman is bothered by the fact that her partner may stop sex at the wrong time or not stop at all.
There is a high probability of contracting sexually transmitted diseases through casual sexual contact.
If several sexual acts occur in a row, a man is likely to have live sperm in the penis.
Long-term practice of PPA can negatively affect men's health due to constant stress, control and interruption of the process. Over time, this will lead to psychological dysfunction.

Given the many disadvantages, couples still use this method. Why is this happening:

Interrupted intercourse is the most common and cheapest way to avoid conception.
This method is always “at hand” in any situation.
Condoms reduce sensitivity and do not bring proper pleasure.
There are no completely safe contraceptives with 100% reliability.
Couples are planning a child in the foreseeable future and are not against an “accidental” pregnancy.

Consequently, coitus interruptus is not a reliable method of contraception and can even lead to some health problems.

Required documents

What papers are needed is decided by what object is being transferred. If earth, then:

Copy of the passport;
A copy of the power of attorney (preferably notarized);
Initial agreement;
Consent of the owner who owns the object;
Consent of the body responsible for the transfer of rights to state or municipal property;
Agreement on sale (assignment of rights to the object);
The act of acceptance and transfer of the object;
Consent of the spouse (if the property is considered common);
Consent of the mortgagee (in case of encumbrance of the plot);
Representative's power of attorney;
Copies of the organization's charter and documents confirming the right of the director or other signatory to conclude a transaction.
The lease of agricultural land is permitted to agricultural producers, and the sale of leases is permitted to an organization engaged in the relevant type of activity;
Purchasing the right to lease property that requires a license is permitted if the buyer of the right has a license. The absence of a license makes the transaction invalid.

The complexity and length of documentation varies . It is one thing to assign the lease of a small store, and another thing for an enterprise where only the transfer act constitutes a multi-page document with a detailed inventory of the property.

Original documents are brought to registration; copies are certified by service employees. If you use the State Services website, electronic copies are certified with an electronic digital signature. You still have to bring papers for verification during the final registration procedure.

What should you pay attention to when signing a contract?

The terms of the contract must be carefully negotiated in advance. The discussion is recorded in correspondence, approval protocols, and is often used in court in the event of a dispute. If we talk about state or municipal property, the conditions are always strict; the subject of negotiations is either the term or the price. The price, however, is also strictly regulated.

It’s a different matter if the object is privately owned, you can agree on anything, although the rules on licensing or use of property exclusively for limited purposes are not excluded.

The assignment of rights is simply a transfer of rights and obligations from one person to another, so you need to make sure that significant adjustments are not made to the agreement:

It is advisable to carefully rewrite the subject of the agreement or it should contain a link to carefully developed annexes with a description;
Who is responsible in case of rent debt;
Issues of liability for violations of the contract discovered after the sale of lease rights;
Does the contract provide for the possibility of its continuation after the expiration of its validity period?

The assignment agreement is concluded with the former tenant, so all possible options related to the results of its activities should be calculated.

Sometimes circumstances arise in which the tenant no longer needs to use the leased property, but there is still a lot of time left before the contract expires. In addition to such an undesirable option as breaking the contract, in this case there are two others that will allow you not to bother the owner again, and sometimes also make a profit: sublease and assignment of lease rights.

What is the assignment of lease rights for non-residential premises: briefly about the main thing

The assignment of lease rights for non-residential premises is a transaction that, by its nature and the result obtained, is somewhat comparable to a purchase and sale agreement, and the subject of such an agreement is lease rights.

Just like all transactions made among participants in civil legal relations, it can be declared invalid for certain reasons.

To avoid this, you need to know some of the intricacies of concluding an agreement, which in some cases can be very useful and mutually beneficial for the parties.

What is PPA?

PPA is an abbreviation for the concept of “assignment of lease rights.” To the question: “What is PPA?” can be answered as follows - this is re-letting, when there is a change of persons, in particular, the tenant.

Another person takes his place in the contract, who continues to bear all the responsibilities and also have all the rights that the previous tenant had. At the same time, upon assignment, the rights and obligations of the latter end.

Legislative basis

Article 615 of the Civil Code of the Russian Federation defines some nuances that the tenant must observe in the process of using someone else’s property, but, at the same time, provides him with certain rights. From the meaning of paragraph two of this article, we can determine several rights of the tenant, which include:

the right to sublease property;
the right to transfer all of your obligations and rights under an agreement with the lessor to third parties (release);
the right to transfer rented space for free use;
transfer of lease rights under any obligations as collateral;
transfer of lease rights to the authorized capital of commercial organizations.

Lease rights and restrictions

Once the lease agreement is concluded, the tenant is automatically granted ownership and use rights. Also, from this moment, the listed rights become an independent object with which it is possible to make transactions. These rights can also be called rental rights.

At the same time, the tenant cannot independently dispose of them, since he is not the owner of the property. This to some extent limits the tenant from carrying out certain transactions, since only the owner has the authority to dispose of this property. Accordingly, this owner limits the will of his counterparty to dispose of rental rights.

If there is a change of persons in the lease agreement and another person takes the place of the tenant, then it is necessary to obtain the prior consent of the landlord. This consent must be provided in writing, for example, in a response to a corresponding letter.

According to the information letter of the Presidium of the Supreme Arbitration Court No. 66, if in the lease agreement the parties provided in advance for the possibility of re-letting, then the owner’s separate consent to this is not required (paragraph 18 of the Letter).

Benefits from assignment

In certain life situations, concluding an agreement for the assignment of lease rights to non-residential premises is the most favorable way out of a difficult situation.

Such a transaction between the parties will provide an opportunity for the new tenant to obtain the property for a fee for possession and use on identical terms and at the same price at which it was rented by the previous person. In other words, the new tenant may receive special preferential conditions that the previous tenant had.

Such agreements are concluded mainly for the rental of non-residential premises located in prestigious locations in Moscow and other cities of the country, which provide good income for business.

Typically, their validity period is more than five years, so it is very profitable for a new tenant to get a place that is already popular with clients, and the previous tenant also has his own interest in receiving a compensation amount.

Landlords, as a rule, are municipal and other executive bodies. The demand for renting their premises is always high due to low prices, unlike commercial enterprises.

If you want to rent state-owned non-residential premises, an entrepreneur or company will have two options:

participate in an auction among many of the same people with an uncertain chance of winning;
carry out the assignment of rental rights with the existing tenant, paying him a kind of commission.

Naturally, the second option will be preferable. However, some difficulties may also arise here. So, for example, if a new tenant needs to reconstruct the property for himself, then this will not be easy to do, and sometimes impossible, if you do not agree with the landlord.

Difference from sublease

The tenant who subleases the property remains the same party to the agreement concluded with the lessor and still continues to fulfill his obligations, that is, he is responsible for any violation of the agreement.

Unlike a sublease, in an assignment, the rights and obligations of the original tenant are completely terminated and transferred to the new tenant.

For this reason, the documents drawn up in these transactions are also different.

How to conclude an agreement

The assignment or lease of the right to lease an object can only be carried out by signing a paid agreement. It is impossible to conclude a donation of rental rights; such a transaction will be considered invalid (Article 575 of the Civil Code of Russia states that a gift among commercial enterprises is prohibited).

The assignment or re-lease agreement, a sample of which can easily be found on the Internet, must contain:

procedure for transferring lease rights, payment terms;
procedure for using the leased property;
conditions of maintenance of this property;
the procedure for payment for the leased property to the lessor;
other essential conditions.

The form of the concluded agreement must be the same as the original agreement. If the lease agreement was registered with Rosreestr, then the assignment must also go through this procedure . Typically, in an assignment agreement, the first tenant is called the assignor, the second - the assignee.

Transfer of documents, registration

After drawing up an agreement for the assignment of premises, the parties must draw up an act of acceptance and transfer of documents from the former tenant to the new one. The latter must receive the original lease agreement and all payment documents confirming payments to the lessor.

Also, the first tenant must submit a certificate of registration of the lease with a government agency and identification documents for the object, for the land plot (cadastral and technical passports, etc.).

To register with an authorized body in Moscow or any other city, you may need:

application in the form of the registering authority;
payment document;
constituent documents;
relevant protocols and decisions of the authorized bodies of the parties confirming the intention to conclude a transaction;
documents for the representative confirming his right to conclude a transaction;
OGRN certificate, individual taxpayer number;
lease contract;
assignment agreement;
technical passport, plan, explication of premises.

A premises PPA agreement can be very interesting for individual business entities, but before signing it, you need to consult with relevant specialists in this field.

Source: https://yuristznaet.ru/nezhilye-pomescheniya/pereustupka-prav-arendy.html

Property tenant rights

The essence of the assignment is the transfer of rights and obligations in full, after which the new tenant acquires all the capabilities that the previous one had. This means that he is endowed with the rights:

concluding a sublease agreement;
transfer of lease rights received upon signing an agreement with the property owner;
transfer of the resulting area for free use;
application of lease rights as a collateral asset;
its application as part of the company's authorized capital.

Thus, the rights to lease property themselves are considered as an object for concluding transactions and a subject of calculation, having their own value.

On the other hand, the owner of the transferred object retains rights to:

disposal of the object;
checking its condition or receiving a report if it is a land plot;
termination of the agreement if the tenant does not fulfill obligations;
receiving payment in the same amount and on time.

If the assignment agreement contradicts the original one, the owner will have the right to terminate it.

Benefits from assignment

Assignment has a number of benefits. Let's describe the main ones:

if you plan to assign a long-term contract, then payments will continue at the same price, more favorable than it was at the current moment;
most often such agreements are concluded regarding premises located in buildings in the central areas of cities that bring the greatest benefit;
before acquiring rights with the help of PPA, a potential tenant has the opportunity to look at the property “in operation” and check how much money it brings in, how many clients the business that is located in it has;
the first tenant will not have problems due to breaking the agreement with the property owner, and will also be able to return part of the invested funds.

The effectiveness of interrupted coitus

Coitus interruptus (COI) is a common method of contraception, the essence of which is to remove the male genital organ from the vagina before ejaculation. Thus, sperm does not enter the woman and conception does not occur.

The technique of unfinished sexual intercourse has been practiced since time immemorial. But if you look at the experience of our ancestors, who had 5-7 children per family, then its effectiveness can be questioned.

According to medical studies, PPA helps prevent sexual intercourse in 37% of cases. In the remaining 73%, even when the penis is removed from the vagina long before ejaculation, pregnancy occurs.

The fact is that pre-seminal fluid (transparent mucus secreted from the urethra during arousal) contains a small proportion of active sperm. The function of this secretion is to moisturize the vaginal walls to facilitate penetration. But due to the fact that it passes through the same channel as sperm, it contains sperm.

Therefore, even though a man removes his penis when he feels an orgasm approaching, a small amount of sperm enters the vagina even at the first stage of intimacy, which is why pregnancy occurs. This is why PPA is not considered a 100% contraceptive.

List of documents

After the agreement is signed, an act of acceptance and transfer of documents is drawn up. They will be needed for state registration of the new tenant. To register the assignment in Rosreestr, you will need the following papers:

statement;
passport, and if a representative acts instead of one of the parties - a power of attorney;
title documents;
consent or confirmation of the notification of the owner of the transferred housing;
for individuals - the consent of the spouse to dispose of the object;
for legal entities – copies of the company’s constituent and statutory documents, certified by a notary;
for a land plot - consent of the land resources committee;
lease agreements – original and new;
a receipt indicating that the duty has been paid.

If the papers are available and meet the requirements, then registration will be carried out, after which the rental rights will be transferred to the new owner, and the old one will completely lose them. If any flaw is discovered, you will have to resubmit the documents. This can greatly delay the entire process, and any real estate transactions are quite complex to complete, so it is recommended to involve a professional lawyer in the matter from the very beginning.