Agreement for lifelong residence in an apartment

Concluding a life-long rent agreement for an apartment is a fairly new and not yet widespread type of civil law relationship in our country, which has both obvious and hidden pros and cons for both parties.

The possibility of purchasing their own home in the country for the majority of the population is becoming more and more elusive from year to year. Real estate prices are rising, wages are decreasing during the crisis, and only an incorrigible optimist can hope for the opposite. The situation is not the best for pensioners, who are increasingly left alone with their problems: low pensions, increased utility bills, rising prices for food and medicine, and lack of proper care. In search of solutions to problems, people seeking to improve their living conditions and elderly apartment owners found a way out - concluding a rental agreement.

What is it - lifetime rent of an apartment

Most often, such transactions are concluded by elderly people who either do not have relatives or, due to various family vicissitudes, do not communicate with them. Thus, they choose an assistant who receives not a monetary reward for their care, but an apartment.

When concluding a life annuity agreement, its subject becomes an apartment, which its owner, called the annuitant, transfers to the annuitant for full ownership after death. He, in turn, must pay the owner of the apartment a certain monetary contribution within a specified period (monthly, annually or at other agreed intervals). The agreement may also provide for one-time monetary assistance.

The ownership right passes to the new owner only after the death of the annuitant. At this point, the contract is considered fulfilled, and payments stop, even if the former owner still has relatives who can claim the inheritance.

Payment is made only in the form of monetary contributions, cash or non-cash; no exchanges of property are allowed.

The amount of such payments in terms of one month must be greater than the subsistence minimum.

If the owner of the apartment dies before the official registration of the contract, it is canceled.

Differences between permanent and lifelong forms of annuity

In addition to lifelong annuity, another type of agreement of this kind is common - permanent annuity, which also implies a paid transfer of the apartment. Its main distinguishing feature is the perpetual nature of the obligations imposed on the rent payer to pay rent. The validity of the contract in this case is not limited to any period of time, does not depend on the life expectancy of the recipient, and ends after receipt of the entire ransom amount for the property.

In addition to monetary payments, the contract may provide for care, help with housework, and medical care. These can be any services that the apartment owner needs, the cost of which would correspond to the amount of the rent payment. It is also possible that rent may be mixed: part of the payment is in money, the other part is in goods or services.

Having entered into a lifetime rental agreement, the renter does not have the right to buy the apartment until the death of its owner. He is obliged to pay contributions in the established amount and within the time limits specified in the document. And with a constant annuity, this option is possible if the parties agreed on this in advance. The owner can receive the funds due to him in any “portions”. It is only necessary to agree on this in advance between the parties to the transaction.

Differences between dependent annuity and life annuity

Rent for an apartment with a dependent is somewhat different from the lifelong form of annuity. It can be carried out in money or expenses for carrying out repairs, purchasing things, medicines (especially expensive ones) and creating such living conditions as are required by the current owner of the apartment. For example, if the owner of a residential premises becomes ill, the renter provides him with treatment and care on his own or by hiring a qualified nurse.

The rental agreement for a dependent apartment often specifies special services required by the owner. For example, care and maintenance can be provided not to the apartment owner himself, but to a third party, for example, a spouse or children. As with a permanent annuity, a certain one-time payment is possible, provided for at the time of notarization of the agreement.

Often, such agreements also stipulate the obligation of the rent payer, after the death of the owner, to bear the costs of burial and payment for the necessary funeral services.

Early dissolution

One of the options for terminating the relationship between the lender and the borrower is early termination of the contract. This is possible for one of several reasons :

use of residential premises for other purposes;
deterioration of housing;
transfer of premises for use to another person without the consent of the lender;
detection of rights of third parties to an object that were not notified by the lender.

Read more: In accordance with the order of the General Director
As a result, an agreement on the transfer of an object for free use can be concluded by the parties independently. However, you should adhere to a sample or standard form, and also take into account legal requirements.

Attention! Due to recent changes in legislation, the information in this article may be out of date. However, each situation is individual.

A deed of gift for an apartment with lifelong residence of the donor is a special category of agreement in which the donor presents real estate to the second party under certain conditions.

According to Article 572 of the Civil Code of the Russian Federation, a gift agreement is a gratuitous transfer of property rights from one party to another. The donee does not pay anything to the donor when concluding this type of transaction.

However, this agreement may contain certain clauses indicating the fact that the donor has the full right to live in the presented apartment for life.

Who can enter into a lifelong rental agreement for an apartment?

The rent payer can be either an individual or a legal entity. The second party can only be an individual. However, to become a recipient of a life annuity, the following conditions must be met:

the citizen must be the sole owner of the apartment that is the subject of the agreement;
the apartment cannot have encumbrances or any restrictions on its disposal.

How to find out your tax debt, pay and sleep peacefully, is described in our article. Looking for a job? Get your resume right!

Default of the Russian currency: in simple words about the past and the near future. Read more here.

How to conclude a contract correctly

When concluding a life annuity agreement, you should understand that:

The agreement does not have a specific form, and therefore, when developing and agreeing on it, it is necessary to carefully consider all the nuances. In the document, the annuity recipient must provide and describe all the requirements that he is ready to make to the payer. This could be a monthly cash payment, or specific necessary services - the purchase of medicines and products, and any other points of interest to the elderly person. It may be helpful to consult with a lawyer before finalizing the agreement. This applies to both parties - the recipient and the payer; they both must minimize the risks of being deceived.
The owner of the property provides documents confirming his ownership of the premises.
Certification of the transaction as an agreement on the alienation of real estate, according to the law, must be carried out by a notary. Failure to comply with this condition means recognition of the invalidity of such an agreement, and the transaction, in accordance with Art. 165 of the Civil Code of the Russian Federation will be declared void. Therefore, both parties – the payer and the recipient – must provide the entire set of collected documents to the notary in whose territory of activity the apartment that is the subject of the rental agreement is located.
The notary assesses whether the future rentee enters into the transaction voluntarily, whether he is aware of all its possible consequences, and if there are no obstacles, he certifies the agreement signed by the parties.
Next, the package of documents is transferred to Rosreestr for registration. The certificate of ownership of the property indicates the new owner of the property and the encumbrance must be registered. The annuitant must fulfill all the terms of the contract until the death of the annuitant. After receiving from the civil registry office a certificate of death of the previous owner of the apartment, the rent payer receives the right to submit an application to remove the encumbrance from the property. He becomes the full owner of the apartment.

Terms of the contract, its certification and registration

The life annuity agreement stipulates:

Parties to the contract. It is necessary to indicate the full name, passport details of the payer and recipient.
Subject of the agreement. The apartment for which the contract is concluded, its address, total area, and number of rooms are indicated.
Agreement conditions. All rights, relationships and obligations of the parties are described in detail here.
Conditions for termination of the contract. It is necessary to determine why the contract may be terminated or terminated before the death of the annuitant.
Responsibility of the parties. It is necessary to indicate what penalties are provided for violation of the terms of the agreement by participants.
Dispute resolution. The method for resolving disputes arising under a contract is explained. Such disagreements are usually resolved in court.
Addresses, details and signatures of the parties.

You can download a sample of drawing up a lifelong rental agreement for an apartment by following this link.

Required documents

To carry out state registration of a life annuity agreement, it is necessary to prepare and submit all the necessary documents:

application to Rosreestr for state registration of a life annuity agreement;
originals and copies of passports of the parties to the transaction;
consent of the spouses of the payer and recipient to complete the transaction, certified by a notary;
documents certifying the recipient's right to property;
a copy of the personal account and an extract from the house register for the rent recipient;
certificate of the cost of the apartment;
cadastral passport for the premises and explication;
a contract certified by a notary;
paid receipt of state duty.

Features of donation with the right of lifelong residence

Unfortunately, according to the laws of the Russian Federation, the donor is not insured against unforeseen aggravating cases in the completion of a gift transaction.

Even in the case of drawing up a contract with an encumbrance, when the donor has all the rights to continue living in the designated living space, the new owner can dispose of this property at his own discretion.

Based on Article 572 of the Civil Code, we can confidently say that the gift transaction is a gratuitous act. And any gratuitousness does not provide for reversion, or, moreover, joint use of the object of donation.

The very act of donation with the possession of the right of perpetual use of the former owner prohibits legally evicting him from the apartment, nothing more. In this case, the rights of the owner remain with the recipient.

Therefore, this agreement is increasingly being resorted to by elderly citizens who want to make a gift to their relatives, but retain the opportunity to live in the donated apartment for the rest of their lives.

Rights and obligations of the donor

The contract must also indicate the fact that the donor has the right to live in the specified apartment indefinitely.

This will be more convincing than simply the right to use real estate, since the use of living space does not specify the authority to live in it.

Rights, obligations and recommendations to the donor:

The RF IC clearly formulates the debt obligations of a capable relative to support disabled relatives. And not only through the closest family line: mother, father, grandfather, grandmother, but also uncle and aunt.
According to the advice of legal experts, you can do this: not present the entire apartment to your relatives, but reserve a share for yourself to live in for the rest of your life, with its subsequent transfer as a gift at the will of the property owner.
In any case, according to the law, the donor has the right to live in the donated apartment for life, if he has no other living space.
If the donor, after presenting the living space under the contract, intends to live in the apartment more than once, to which he has a direct right, then this must be urgently indicated in a written agreement. The gift agreement specifies the number of cohabitants, the time and mode of their residence.
A citizen who donates living space has the right to live on it free of charge, which also needs to be stated in the agreement.
There is also the concept of a gift as returnable and gratuitous, which is also prescribed in the agreement. In the first case, the recipient undertakes to pay sums of money for renting an apartment or to provide for the donor. Under a gratuitous gift, property is transferred with all rights and obligations free of charge.
The owner of real estate has the right to transfer it into the possession of the person paying the rent, who undertakes to pay the full amount to the donor.
The donor has the right to cancel the gift agreement without agreeing with the second counterparty, in case of non-compliance and violation of his rights by the donee to live in the living space specified in the agreement.

Read more: Public cadastral map by cadastral number

Of course, it is more correct to retain the ability to use and manage your property during your lifetime in accordance with documentation and legal issues.

Citizens who have these powers are able to refute and protect their ownership, including from the new owner - the recipient, if he has already become one according to the contract.

Rights and obligations of the donee

If the donor intends to continue to live in the apartment presented by him indefinitely, the powers of the donee must be respected by law.

The recipient of real estate as a gift must comply with all the rights of the donor who has been registered in the Unified State Register. He does not have the right to cancel the donor’s registration in the specified living space or prohibit him from living in this apartment in which he is registered.

That is, the powers of the donee are significantly limited in the event that he wishes to present, sell or lease residential property.

The donee enjoys the following powers and responsibilities when accepting housing under a donation agreement with the possibility of lifelong residence in it by the previous owner.

Rights of the donee when making a transaction:

Has the right to accept real estate as a gift. If significant violations of the clauses of the agreement occur on the part of the donor, the recipient has the right to demand the property presented to him, since he has all the powers of the owner over it in accordance with Articles 396 and 398 of the Civil Code of the Russian Federation.
The right to refuse the object of donation without giving reasons in accordance with paragraph 2 of Article 573 of the Civil Code of the Russian Federation.
Has the right to dispose of real estate at his own discretion in accordance with Article No. 209 of the Civil Code of the Russian Federation.

However, there are certain restrictions, since the recipient of real estate under the gift agreement does not have the right to violate the donor’s rights to live indefinitely in the given living space.

How to correctly determine the order of use

The procedure for using living space can be delimited by several principles in relation to both parties to the gift agreement with the right of lifelong residence in the apartment of the former owner specified in the agreement.

Main factors when determining the order of use:

the donor can only have a share in the apartment (room) until his death;
a citizen who donates housing possesses it in full, with the exception of the presented share (room), and the rights to the entire apartment are transferred to the donee after his death;
both counterparties to the agreement have the right to transfer the use of real estate to a third party, for example, a son/grandson after the death of the donor, this must certainly be indicated in the agreement;
upon the death of the donor, the living space is transferred into the possession of the donee without the right of his relatives to claim the real estate specified in the contract, in accordance with Article 292 of the Civil Code of the Russian Federation;
when drawing up this agreement with the legal indefinite residence of the donor, by agreement of both counterparties, other persons may also have the right to use the apartment during the lifetime of the owner.

Both parties to the gift agreement stipulate among themselves the procedure for using the donated real estate. To avoid all sorts of mistakes, it is best to contact a qualified lawyer with this issue.

Pros and cons of lifetime rent of an apartment

When concluding a life annuity agreement, both parties are exposed to serious risks:

the payer may turn out to be a fraudster, fail to fulfill the provisions of the contract, or may choose an unscrupulous person to provide his services;
the payer may not calculate his strength and be unable to provide the rent recipient with what is necessary;
the recipient may live longer than the payer, and he will not receive the promised living space;
the relatives of the annuitant may not agree with the terms of the annuity agreement and, after the death of the recipient, file an application for its termination in court;
the recipient will want to terminate the contract after some time. But if the rent payer fulfills all the terms of the contract in good faith, then it will be difficult for the recipient to do this.

When considering the need to conclude an annuity agreement, you should evaluate all its pros and cons.

Pros:

the annuitant has the opportunity to terminate the contract only in court, whereas, for example, a will can be easily rewritten;
the rent agreement is registered in Rosreestr, so the rent recipient ceases to be the object of close attention of “black realtors” and other scammers;
the agreement concluded is mutually beneficial: the elderly person receives care and additional income while continuing to live in a familiar environment, and the payer, if all conditions are met, acquires his own housing.

Minuses:

the payer must transfer a certain amount to the recipient monthly;
If the payer violates the payment deadline, the recipient has the opportunity to terminate the contract, and the money transferred before this will not be returned to the payer.

Features of the contract for the sale and purchase of an apartment with the right of lifelong residence of its seller

The Civil Code of the Russian Federation makes it possible to formalize a transaction for the purchase and sale of residential space while preserving the previous owner’s right to live in the apartment. Such a transaction has a number of features that are worth carefully studying.

Hide content

Dependent housing policy: what is it?

Upon sale, the owner of the apartment reserves the right to reside in the alienated property.

Most often, such agreements are drawn up by elderly people in order to obtain an additional source of income and eliminate the risk of eviction from the apartment.

The document may provide for the buyer’s obligation to ensure the maintenance of the former owner of the apartment in the format of social care or monthly payments of a set amount.

The following points must be included in the text:

Place of actual signing of the agreement and date.
Personal data of the parties to the transaction.
Subject of the transaction and its technical characteristics.
Duration of the agreement.
Rights and obligations of the parties to the transaction.
Payment procedure and conditions for transferring the subject of the contract to the buyer.
Conditions for the redemption of lifelong maintenance.
Responsibility of participants for non-compliance with the terms of the transaction.
Procedure and conditions for termination.

The DCP must be notarized. At the same time, the notary confirms not only the authenticity of the title documents, but also evaluates the seller’s legal capacity.

Article 421 of the Civil Code of the Russian Federation may be applied, according to which the seller and buyer have the right to independently determine any of its conditions, if they do not contradict the law. The inclusion in the DCT of a condition on the right of lifelong residence and use is permissible and does not contradict the legislation of the Russian Federation.

Legislative norms governing this type of transaction:

Who can qualify?

Persons who refused a share in favor of one of their relatives at the time of privatization.
Persons whose right of residence is established in accordance with the will.
Husband or wife, if there is such a condition in the marriage contract.
Member of the cooperative, subject to partial payment of the share.
A minor living in a boarding school or in a correctional facility.

Important! It is possible to sell an apartment with an encumbrance in the form of the right of lifelong residence without obtaining the consent of the owner.

The DPA of housing with the right of lifelong residence is required to be notarized. The notary must check not only the authenticity of the title documents, but also the legal capacity of the seller.
According to Article 549 of the Civil Code of the Russian Federation, after registering the transaction in Rosreestr, the buyer must receive an extract from the Unified State Register of Real Estate with a note about the existing encumbrance on the living space in the form of a tenant.
Ownership of the apartment passes to the buyer immediately after signing the agreement.
After the conclusion of the agreement, only the buyer remains the obligated party, provided that data on lifelong maintenance and monthly payments were included in the contract.
The validity of the document is urgent (obligations terminate after the death of the seller).
After the alienation of the apartment in favor of the buyer, all responsibilities for the maintenance of the apartment are transferred to him - payment of taxes, repairs, maintenance of housing, payment of utilities, etc.
A citizen living in an apartment on the basis of this agreement can register someone in the apartment that is the subject of the transaction only with the consent of the new owner of the property.

Required documents

Certificate of ownership of the property or an extract from the Unified State Register of Real Estate.
Documents confirming the acquisition of rights to the property.
Technical passport for housing.
An extract from the house register with information about those registered in the apartment.

Negotiation of conditions

At the first stage, the parties to the transaction should discuss the terms of the agreement as thoroughly as possible. It is recommended to draw up a preliminary agreement. A prerequisite for concluding a transaction is agreement reached between the buyer and seller regarding all significant details of the agreement.

Important! According to the legislation of the Russian Federation, conditions relating to the subject of the transaction and the price of the contract are considered essential.

Agreement must also be reached regarding:

The cost of the apartment, which the buyer is obliged to pay to the owner of the property.
The amount of lifelong maintenance and the procedure for its payment.

Signing the agreement and its notarization

After the parties have agreed on the terms of the transaction, they must sign the agreement and have it certified by a notary (in accordance with the provisions of Article 163 of the Civil Code of the Russian Federation and the Federal Law “On State Registration of Rights”).

During the procedure, the notary checks the legal capacity of the parties to the transaction and their understanding of the key points of the concluded agreement.

State registration of rights

The deed of ownership of real estate with the right of lifelong residence must be registered with Rosreestr. The parties must provide:

Passports of the parties to the transaction.
Notarized agreement in 3 copies.
Completed application in the prescribed form.
Receipt for payment of state duty.

The right to lifelong residence in the apartment of the previous owner is retained even with further changes of apartment owners.

If housing is sold on rental terms, in order to buy it you need to correctly fill out the necessary documents and send them to the authorities: what it is is indicated below, point by point:

An agreement is drawn up. In order to correctly register an annuity for an elderly person, the agreement must include information about the remuneration of the transaction, its conditions and the timing of the transfer of the subject of the agreement to the annuity payer.
There is a personal visit to the notary and certification of the executed agreement.
Visit to the Rosreestr office and submit a package of documents for registration. You will first need to pay the state fee for registration actions.
Employees of the organization will check the submitted documents within 14 days and issue a registration certificate.
The lender will receive an extract from the Unified State Register of Real Estate with a note that an encumbrance has been placed on the property.
The encumbrance can be removed from the housing only after the termination of the obligations of the parties, i.e. after the rent payer provides Rosreestr with a certificate of death of the creditor. After this procedure, he becomes the full owner of the property.

Required documents:

Participants' passports.
Written consent of the spouse if the seller is in an officially registered marriage.
Housing cost assessment.
Title documents for the property.
Certificate of absence of tax debts for the apartment.
Floor plan issued by BTI.
Apartment registration certificate.

Conditions and process of termination

Methods:

Through a notary.
In court after filing a statement of claim.

A party to a transaction who decides to terminate the agreement must notify the other party in writing.

If the seller and buyer can come to an agreement and agree to terminate the contract, the procedure can be carried out by a notary.
If there is a conflict of interest, and it was not possible to resolve the issue out of court, you must go to court.

Important! All facts of non-fulfillment of obligations must be documented. If the claim is satisfied and the transaction is terminated, the seller will receive back the ownership of the property, and the buyer will receive the amount specified in the contract.

If the agreement has been officially terminated, the rentee has the right to make a request to return the rights to the apartment or offer to buy it out.

According to the legislative norms of the Russian Federation, the purchase of an apartment must be carried out at the price of the annual maintenance of the rentee, if the price of the real estate is not fixed in the contract.

Advantages and disadvantages

Both parties are exposed to risks:

The buyer may be dishonest and evade fulfillment of obligations.
The buyer will not be able to provide a rent recipient.
The annuitant may live longer than the payer.
Relatives of the apartment owner may disagree with the concluded agreement and defend their rights in court.
The rent recipient may demand termination of the transaction.

Advantages:

The agreement can only be terminated in court.
State registration with Rosreestr protects the owner from fraudsters.
The agreement is beneficial for both the seller and the buyer: the rentee acquires additional income and does not worry about social services, and the payer purchases real estate for less than the market price.

Flaws:

High risks.
The seller has the right to terminate the contract for any failure to comply with its terms. No money will be returned.

A real estate alienation transaction with the right of lifelong residence of the previous owner can be beneficial for both the seller and the buyer.

An elderly person will receive guarantees of non-eviction, a source of income and assistance in providing for daily life, and the buyer will purchase housing much cheaper than its market value.

However, before signing a contract, you should carefully study the possible risks and terms of the transaction.

, please select a piece of text and press Ctrl+Enter.

Source: https://expravo.com/zhilishhnoe-pravo/kvartira/kuplya-prodazha-kvartiry/dkp-kvartiry/pravo_pp

When and how can you terminate the contract?

Usually the contract ends only after the death of the annuitant, but it is possible to terminate it earlier.

Relationships can be broken if:

1 The parties reached an agreement among themselves without any mutual claims. The termination agreement is drawn up in compliance with all legal regulations and certified by a notary. The rentee returns his title to the home, and the payer is relieved of all obligations to the recipient. 2 The renter violates his contractual obligations to the recipient. This situation is resolved through the court. The rentee applies to the judicial authority with an application, and during the proceedings the payer has the right to stop performing his duties; 3 The contract is declared invalid. Such situations occur when scammers deceive older people into signing an annuity contract. Their relatives find out that the old people were deceived or took advantage of their incapacity, and through the court they seek recognition of the illegality of the terms of the contract; 4 There was damage to the apartment. If the owner transfers the rights to operate his property to the payer, and he intentionally or unintentionally allows it to be damaged or even destroyed, then the rentee applies to the court to terminate the transaction and return the property to himself. The cost of damage is included in the lifetime annuity, and the annuity payer will continue to be obliged to make the annuity payments provided for in the contract.

Judicial practice, examples

The presence of such an encumbrance in a gift agreement is considered completely legal in judicial practice, which corresponds to paragraph 3 of Article 308 of the Civil Code of the Russian Federation.

The fact is that legal liability does not establish duties for citizens who do not participate in it, except for those circumstances prescribed in legislation and other regulatory documents or contracts in which such agreements of the parties are specified.

And also, if liability is indicated not exclusively in relation to both parties, but also for other persons to whom any residential property will be transferred.

An example of this is the Resolution of the Perevolotsk District Court of the Orenburg Region. dated September 15, 2020 in case No. 2-788/2015.

Read more: Who should install mailboxes at the entrance

With the termination of ownership of property, when it is transferred to another person, it does not affect the donor’s right to live in such living space in compliance with all his subsequent rights (Resolution of the Zheleznodorozhny District Court of the city of Voronezh dated September 21, 2020 in case No. 2-1730/2015).

It should be taken into account that legal proceedings are not always one-sided in their decisions.

All this is due to the fact that the laws of the Russian Federation lack certain standards that would ensure compliance with all rights by the new owners who acquired the property in relation to the donor of real estate.