An equity participation agreement (EPA) is a document confirming the mutual obligations of the shareholder and the developer. The cost of real estate is high, and there are many cases of defrauded investors. Therefore, the registration of preschool educational institutions must be checked without fail.
Let's find out how to check a DDU by its registration number. If the inspection is unsuccessful or there are some misunderstandings in your relationship with the developer, it is better to refuse the deal or hire a lawyer who will analyze the situation.
Why do you need to register a child-care center and how is it done?
Relatively recently, there were many cases when, according to the DDU, one apartment in a building under construction was sold in parallel to several buyers. Equally common were situations where an unscrupulous developer began selling apartments without having construction permits. There were a lot of defrauded shareholders, so the state introduced compulsory registration of preschool education institutions in Rosreestr.
When carrying out registration, Rosreestr employees are required to check that the developer has permits and the absence of encumbrances (in the form of an already completed sale to another person) on the future apartment of the potential shareholder. Before the DDU is registered in the Unified State Register of Real Estate (USRN), it is impossible to make monetary settlements with the developer, since the agreement is considered invalid.
Usually, the registration of DDU is carried out by developers. To reduce the burden, they submit documents for registration in batches. That is, they wait until they have several shareholders, and only then submit all the papers for registration at once. This process can take quite a long time.
When registering a DDU, you can immediately order an extract from the Unified State Register in your application. This is the only documentary evidence of the fact that registration has been completed and your transaction with the developer has been assigned a number in the relevant state register. After receiving such an extract and the DDU with Rosreestr marks, you can make monetary settlements with the developer under the contract. You can also order an extract from the Unified State Register of Registration separately, for greater confidence.
The shareholder can find out that the DDU is registered from the developer; although, if desired, he can register the agreement himself. In general, checking the DDU helps make sure that everything is really in order with the contract.
What are the benefits of registering a DDU?
1. Gives the contract legal force.
Upon conclusion of the contract, the developer undertakes to transfer the property to the buyer. But this is still just a promise that has no legal force. For the agreement to become an official document, it must be registered with Rosreestr. No signatures or seals can replace this! 2. Gives you the status of a shareholder and makes it possible to return your money. Without registering a DDU, you will not be considered a shareholder under the law, no matter how much money you actually invest in construction. And it will also be impossible to return money in case of unscrupulous construction.
3. Will help in court. If disputes arise between the developer and the buyer, then an agreement with a registration mark will be necessary for the court.
Checking the DDU agreement by its registration number
There are two methods to obtain information about registering documents for the purchase of an apartment in a building under construction.
- Order an extract from the Unified State Register of Real Estate. This method is considered the most reliable and fastest. Firstly, you receive a document confirming that the childcare center is registered in the prescribed manner. Secondly, receiving such an extract takes no more than 10 working days.
- Request for registration of preschool education on the Rosreestr website. In this case, you will not receive supporting documents. But you can get information almost instantly. However, the site works intermittently and may distort information, and the data is not immediately entered into the database. The document may already be registered, but information about this may not yet be available on the website.
In short, checking the equity participation agreement on the Rosreestr website is not the best way to ensure the authenticity of the DDU. But if it is most convenient for you, then you need to do the following:
- Go to the Rosreestr website. At the bottom of the page, in the “Electronic services” section, select the “Reference information on real estate online” section and click on it.
- A large table will open in front of you, in which you can use various information to check the DDU. In this table, the registration record is designated as “Restriction Number” in the lowest block of the “Rights/Restrictions” table. Paste your registration number into the appropriate cell.
- Fill in the property details in one of the blocks above.
- Enter the captcha and click the “Generate request” button.
One DDU should appear in front of you. But the system sometimes works inaccurately, and there may be several of them. Find the combination of numbers that matches your DDU number.
If it is there, then everything is in order. But if it is not there, this may mean that the child care center is not registered. However, it may also be that the information has simply not been entered into the system yet. Therefore, you can check the DDU again after some time.
Sources:
Federal law on participation in shared construction.
Rosreestr website.
Stages of registration of preschool educational institutions in Rosreestr
1. The DDU itself is concluded with the signatures of the parties and the seal of the developer.
2. An application is submitted (electronic or printed). Documents are attached to the application. If, after registering the DDU, you want to immediately receive an extract from the Unified State Register of Real Estate to ensure that ownership of the property has been established, then indicate this in the application.
3. State The authority issues you a receipt confirming the acceptance of the package of documents for consideration. It should contain a list of all the documents that you attached to the application, the date of application, the name of the registration authority and the full name of the official who accepted the documents. As well as the contact details of the person to whom you need to contact for a response to the consideration of the application.
4. People come to pick up a registered child's home in person and submit a passport and a receipt to receive it.
The application form itself can be obtained from the MFC or the Rosreestr department. If you apply for registration online, the application is filled out, and a receipt is also issued electronically, through the system.
What to do if the contract is not registered
If the DDU is not registered, you should not pay the developer and immediately find out the reason for this circumstance. It is likely that the agreement with a specific shareholder was simply lost on the way to Rosreestr or back. In fact, the registration of the relationship between the shareholder and the developer has taken place, and the requirements for payment from the developer are justified (there is, for example, an extract).
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The equity holder should show the proper level of attention to the entire process of housing construction, and to the preparation of legally correct documents, in particular. The position that the developer is a construction organization with an excellent reputation and has many commissioned buildings is insufficient in most cases.
Reputation, a list of completed buildings and the opinion of happy owners of apartments are not legal arguments, and they should not be taken into account at all in the context of a specific contract.
Having information about the developer (contractor, supplier, construction organization itself) is important, but:
- the provisions of the construction contract are a priority;
- payment (terms, schedule, amounts) – significant;
- the lack of registration of relationships (accurate information) is an extremely relevant point.
We are talking about significant amounts (the cost of housing is always high) and as a result of construction, the shareholder must receive the property. In the vast majority of cases, upon completion of construction, a citizen will have to pay off his loans for the constructed housing for many years.
How to find out whether a DDU is registered in Rosreestr is no less important than knowing for sure that the DDU agreement is not properly registered. An immediate response from the shareholder and clarification of all the reasons for all the circumstances are required. If information about the lack of registration became known unexpectedly, this is a reason to find out why. It is especially interesting if the lack of registration was discovered towards the end of construction before putting the building into operation or during preparation for inspecting the apartment before signing the acceptance certificate.
Practice shows that during the construction and decoration of apartments the most unexpected circumstances are possible, including situations of a man-made or natural nature; there may be an unexpected mortgage factor.
If the occurrence of a natural disaster can somehow be understood or explained, and the state, the developer and the shareholder himself have a hand in eliminating unforeseen consequences, then it won’t hurt to keep technical problems in mind either.
Disruption of communication lines, information infrastructure, loss of documents or messages can create tension in relationships and change the situation.
Litigation or claim activity is always a time-consuming process, and the time factor is often important when making decisions. What to do if the contract suddenly turns out not to be registered is best not only to foresee, but also to closely monitor (check) at all stages of the relationship with the developer.
The shareholder must be aware that a construction organization is a functionally complex system of its own social relations, and many of these relations are at a special level of responsibility.
Even if we do not take into account administrative or tax circumstances, there are many reasons of an engineering nature, fire safety, and the factor of serious violations of construction technology. The unexpected discovery of problems when laying a foundation or connecting to utility networks can give a construction organization a reason to protect its interests.
A justified refusal by the shareholder to participate in construction and re-registration of the contract to another person can also create an unforeseen circumstance. The human factor is important at all stages of the construction of a residential building. Rosreestr is also not only a technical and legislative basis for relations in terms of preschool education, but also a social component.
An equity participation agreement (EPA) is designed to protect shareholders from risks associated with the real estate acquisition procedure. DDU is a guarantor for the purchase of housing in new buildings. In case of delays in delivery of objects under a contract of contract, the law provides for a system of fines, due to which the buyer always remains in the black. Let's look at how to check the DDU in Rosreestr and how the DDU agreement is registered in Rosreestr.
After registering the DDU with the Rosreestr authorities, the shareholder receives guarantees for the purchased property in the new building. The state prevents the development of fraudulent schemes, which indicates the paramount importance of the equity participation agreement.
Registration of an equity participation agreement is regulated by regulations developed specifically for the procedure for registering contracts for the purchase of real estate. The procedure is carried out by Rossreestr specialists at the location of the new building. You can verify your state registration in the following ways:
- Order an extract on state registration;
- Check registration of preschool educational institution in Rosreestr online
Each method has its own advantages and is used depending on the specific situation. When considering a case in court or under other circumstances in which confirmation of the registration of the agreement is required, it is recommended to provide an extract on the availability of state registration of the DDU. In cases where confirmation of registration is required for your own confidence, information from the official website of Rosreestr is sufficient.
How to find out if a contract is registered
There are few options for finding out whether an agreement has been registered. The surest way is to have a certifying signature, stamp and registration number on a copy of the contract. You can contact the developer directly, use numerous online services or multifunctional centers (MFCs) that provide services to the population.
It is mandatory for the shareholder and the developer to have an agreement with the appropriate registration mark in the Roregister, but the agreement may be lost or there may be reasonable doubt that the registration was carried out properly.
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A citizen must understand that shared housing construction has never been and never will be at the expense of his share and even the funds of the shareholders of the entire house under construction. Housing construction is a complex process that is impossible to complete without large investments.
It is not enough to have the right to a land plot, but also:
- Perform preparatory engineering and related work before construction.
- Prepare, adapt and coordinate all project documentation.
- Have established industrial connections for the supply of building materials.
- Provide a full cycle of construction administration and relations with government agencies.
To build a residential building, you need at least one major investment, without which no construction organization will begin construction. In some cases, a construction organization forms its own investment fund for the next construction project, but much more often free capital from third parties is attracted.
Precisely in view of the fact that many individuals and legal entities are involved in shared-equity construction, who are in dynamic relationships with government bodies, and the population’s interest in participating in shared-equity construction is rapidly growing, there is a problem of knowing whether a specific shared-share agreement has been registered.
We are talking not only about the fact that the agreement is registered, but also about:
- to whom – data of an individual;
- what structure is it connected to?
- who is the developer;
- registration date.
There is no guarantee that the developer’s demand to begin payments under the DDU to the shareholder is justified. Before paying the equity holder, you should be sure that the agreement has been certified by Rosreestr and his funds will be under reliable protection.
Some developers save on organizing the process of receiving payments from shareholders. One can understand them, money is constantly needed in construction, but we are talking about the personal funds of a citizen, even if it is a loan from a financial organization.
DDU is not an apartment, but a long process of obtaining it through construction, and this takes a significant amount of time. The shareholder must be absolutely sure that his funds and rights are under the protection of the state and that he will ultimately become the owner of the apartment (and this is cadastral registration).
