Is the deposit refunded or not?

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Before purchasing an apartment, the parties verbally discuss the terms of sale and the final price. The buyer gets acquainted with the title documents for the residential premises and checks the owners’ passports. A fresh extract from the Unified State Register is ordered and the property is checked for the presence or absence of encumbrances and restrictions. After verification, a preliminary contract and deposit agreement are drawn up.

Legislation

The deposit agreement is drawn up only in writing and is considered a guarantee that none of the parties to the transaction will refuse to conclude the purchase and sale agreement within the established time frame. Let's consider whether the deposited amount is returned upon purchase or not.

• If the buyer refuses to purchase the apartment, the deposit remains with the seller.
• If the seller refuses to sell the apartment, then he is obliged to pay double the amount of the deposit. In addition, the seller is obliged to compensate for losses if they are documented by the other party (Article 381 of the Civil Code of the Russian Federation, clause 2).
• If the buyer cannot fulfill the terms of the agreement due to the fault of the creditor (bank), then he does not have the right to demand the return of funds (Article 416 of the Civil Code of the Russian Federation, clause 2).

Return the deposit according to receipt

What a deposit is is clearly explained in the Civil Code of Ukraine in the article. The deposit is part of the amount agreed upon between the buyer and seller, which is deposited as evidence of the buyer’s intentions and his ability to fulfill his obligations. It is also stipulated that if the contract does not directly indicate that the advance payment is a deposit, then it will be considered an advance, that is, all the rules of a deposit are applicable to the advance. If the deal is cancelled, the injured party will receive a double refund of the deposit for the apartment, and in the case of an advance payment only in the original amount.

It follows from this that a deposit is a more serious form of advance payment for transactions. As in all transactions, much depends on the correct drafting of the purchase and sale agreement. Already at this stage, the drafter can prescribe relaxations or tightening of violations of the terms of the contract. To draw up contracts, we recommend that you always invite a real estate lawyer with experience in the purchase and sale of apartments.

I want to believe in the best, so the best outcome of a transaction is when the matter is resolved between the buyer and the seller. In such cases, you will receive the amount as with an advance. Just in case, write an additional agreement stating that you have no complaints against the other party and consider the transaction completed: in case she changes her mind. There is also another legal document that will help you return the deposit for the apartment - a receipt.

If you did not conclude an agreement and limited yourself to only a receipt when you gave the money, then the prepayment will not be considered a deposit, it is an advance. Since the purchase and sale of an apartment with a deposit is the most reliable transaction, the buyer himself may suffer from a breakdown. Situation 1. The buyer has changed his mind about choosing an apartment and asks to return the deposit.

The seller, who held the apartment until the last minute and could have sold it to another buyer long ago, has the right to demand reimbursement of his costs. Depending on the terms of the contract, he has the right to demand a deposit in the full amount or only the penalty portion. Situation 2. In this case, according to the article of the Civil Code of the Criminal Code, the buyer has the right to demand double size. Situation 3. The bank refused to provide a mortgage to the buyer, but the seller wants to receive a deposit for the downtime and files a lawsuit.

In this case, the law will be on the buyer's side. Summarizing the above, we conclude that buying an apartment with a deposit is the most reliable deal for both parties. The buyer knows for sure that he will receive the apartment he has chosen, and the seller is confident in the firm intentions of the buyer.

UK RU. Ask a Question. For individuals Land lawyer Inheritance lawyer Tax lawyer Division of property Legal advice Lawyer services Lawyer services Tax reports. Refund of the deposit for an apartment: the legal side of the issue.

Buying an apartment Views: So what is the fundamental difference between these two concepts? How to return the deposit for an apartment? The receipt contains the following details: Full name of the seller and buyer. Residential addresses of the parties to the transaction according to the passport and in fact. Subject of the transaction: in our case, an apartment. Deposit amount. Repayment terms for the remaining amount. Signatures of the seller and buyer.

Who will suffer from the failure of the deposit deal? Let's consider cases where the right to return the deposit for an apartment arises: Situation 1. Send Reset Cancel. Home Blog Buying an apartment Refunding the deposit for an apartment: the legal side of the issue. SVG Modal background. Feedback Telephone consultation: Thank you for your application!

Is the amount refunded if the transaction does not take place?

If force majeure occurs, when one of the parties cannot fulfill the terms of the contract for reasons beyond its control, the obligations under the contract are terminated and the deposit is returned (Article 416 of the Civil Code of the Russian Federation, clause 1). Such reasons may be:

1. illness or death of one of the parties to the transaction;
2. emergency condition of the house;
3. causing significant damage to the apartment;
4. errors in the preliminary agreement;
5. the occurrence of an encumbrance on the apartment (ban);
6. violation of the rights of minor children;
7. other reasons that the court considers objective.

If you refuse to purchase

If the buyer refuses to purchase the property, he loses the deposit amount. You can demand termination of the contract and a refund under certain circumstances:

• Delaying the transaction by the seller without objective reasons. A notification letter is sent and, in case of refusal, a statement of claim is filed in court.
• Overrated. The apartment is being purchased with a mortgage and has not been appraised. In this case, you can demand a refund if the seller does not compromise on price.
• Unsuitability of housing as a result of fire, flooding, etc.
• Providing knowingly false information about registered and temporarily absent persons.
• Imposition of a ban by bailiffs.
• Inconsistency of documents for the apartment with the extract from the Unified State Register of Real Estate.

The reason must be objective. If the owner refuses, it is necessary to file a statement of claim in court. The losing party pays the legal costs.

At the initiative of the seller

According to the law, if the seller refuses to sell the property, he is obliged to pay double the amount of the deposit. But there are situations when the owner asks to terminate the contract and is ready to return the deposit.

Objective reasons:

1. Owner's illness or serious physical injury (incapacity).
2. Causing damage to the apartment as a result of fire, flooding, etc.
3. Third Party Claims. The apartment was inherited, but a relative showed up, whom the seller did not know about.
4. Imposition of a ban by bailiffs on registration actions.

In this case, the contract is terminated and the property owner returns the money.

Cannot be considered objective:

• the owner changed his mind due to the fact that the counter option was sold;
• the owner learned that he needed to pay sales tax.

The buyer may demand a double amount of the deposit.

What should be in the contract?

The more conditions are specified, the better. Try to be as specific as possible. It is necessary to indicate, regardless of the type of contract:

• Parties' data. In this case, an agreement must be concluded with the owners of the apartment.

• Detailed information about the property, all owners and registered in the apartment.

• The amount and period for which an advance, deposit or security payment is made. If the transaction is alternative, that is, several apartments are sold and bought at the same time, then prepayments must be made for the same period.

• What should the parties do during this time? For example, the buyer needs to get a mortgage or sell his property, the seller needs to collect all the documents, and so on.

• List of documents that need to be prepared: an extract from the house register, certificates of no debt, permission from the guardianship authorities, consent of the spouse if the apartment was purchased during marriage, etc.

• How the parties notify each other: by regular mail or email.

• How and when will the money be returned?

• When should tenants deregister and physically vacate the apartment?

• Factors that may subsequently affect the buyer's ownership so that he can return the money without loss. They must be identified by legal due diligence.

• Reasons that may interfere with the transaction. For example, refusal of guardianship authorities or problems with legalizing redevelopment in the BTI. Refusal of other participants if the transaction involves the simultaneous purchase and sale of several apartments, etc.

• If you buy an apartment with a mortgage, then be sure to include a clause about the bank’s disapproval of the loan or the real estate itself.

• And finally, the date and place of the transaction are stated - the bank, the notary, who bears the costs of registration, the deposit box, notary expenses and how this is compensated.

This is important to know: Is a disabled person of group 1 entitled to an apartment?

Olesya decided to buy a one-room apartment on the secondary market with a mortgage. She was approved and given 90 days to find an apartment. An option was quickly found and an advance was made through the realtor. But for some reason the bank did not approve the apartment. The seller himself bought another property and paid a deposit for it. He believed that the deal fell through due to the buyer’s fault and refused to return the “advance payment.”

What was done wrong?

The bank's refusal is considered a circumstance beyond the control of the seller or buyer. Therefore, it is no one’s fault that the deal did not take place. Of course, if all parties had initially discussed this situation and included the corresponding clause in the contracts, then the problem most likely would not have arisen. But even without such a clause, according to the law, the “advance” must be returned. Olesya needs to insist on her own and, if the money is not given, go to court.

How can I make a refund?

By prior agreement

If the preliminary contract and agreement on the deposit are drawn up correctly and without errors, then the deposit can be returned only by a court decision or by the good will of the seller. When signing the documents, the parties agreed that in case of refusal to purchase, the deposit amount remains with the owner of the apartment and the buyer cannot count on a refund (clause 2 of Article 381 of the Civil Code of the Russian Federation).

When going to court, the buyer must provide reasoned reasons why he cannot purchase an apartment. Arguments such as changing your mind or being denied a loan cannot be objective, and the trial will be lost. If an agreement cannot be reached and there are no compelling reasons to cancel the purchase, then the deposit amount will be lost in full. There is no point in going to court, as you will not only have to waste time, but also pay additional legal costs.

By receipt

If the seller and buyer are preparing the documents on their own, then they will not be able to correctly draw up a preliminary agreement and an agreement on the deposit. In this case, a receipt is drawn up. A receipt is a document confirming the transfer of money from one person to another.

It must indicate:

1. passport details of the parties to the transaction;
2. data about the property;
3. transferred amount (indicated in numbers and words);
4. for what and when it was transferred;
5. Below, the recipient indicates his data (full name), puts a number and signature.

Help: By and large, a receipt is an analogue of an advance payment, only in a simplified version.

The receipt does not carry a security function, but only confirms the fact of transfer of money . Compiled by hand or in printed form. It does not stipulate penalties and obligations of the parties, since this is not provided for by the legislation of the Russian Federation. If the deal fails, the money is returned in exchange for a receipt.

How to return a deposit for an apartment using a receipt

All-knowing statistics say that almost every fifth real estate transaction involves an advance payment, which is transferred by the potential buyer to the seller of an apartment or private house. At the same time, many subsequently complain that if the sale and purchase fails, serious problems arise with the return of the transferred money. The main motive of the seller is the buyer’s fault that the transaction did not take place. So is there any way to solve this problem and get your funds back? We will look for the answer to this question in this article. The presence of an advance payment, which constitutes some part of the cost of the purchased housing, is stipulated in the preliminary agreement or a special receipt confirming receipt of money by the seller.

VIDEO ON THE TOPIC: Does a receipt have legal force, how to draw up a receipt, sample receipt Ukraine.

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