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When almost 30 years ago, Russian citizens first received the right to register for free privatization of the municipal housing in which they lived, the decision to privatize the apartment seemed to be the only correct one. Privatization quickly became a mass phenomenon. And after some time, people came to the conclusion that living in an apartment on social rent also has its advantages.

And since then, the debate about what is more profitable - to privatize housing or leave “everything as it is” has not subsided. There is no clear answer to this question; it all depends on the specific life situation of the residents. And what is good for some families is not at all suitable for others.

In this article we will talk in detail about the features of privatized and non-privatized housing. In particular, we will find out whether there is a difference between the concepts of “privatization” and “property”. Let's compare the advantages and disadvantages of each type. And on this basis we will give useful legal recommendations on what is the smartest thing to do in a given case.

What is a “Privatized apartment”?

First of all, you need to clearly understand the terms.

Privatization is the process of transforming property from municipal to private, regulated by Federal Law No. 1541-1. The basis for privatization is a social tenancy agreement or a municipal order (currently used extremely rarely).

Rules for the privatization of municipal housing in 2021

Re-registration of real estate is carried out free of charge. Only government fees are payable.
Privatization is carried out entirely voluntarily.
The privatization agreement has a standard form throughout the Russian territory.
The opportunity to privatize a share in a municipal apartment, and not just the entire premises at once.
The agreement on the transfer of rights to property is drawn up in one copy, regardless of how many people took part in the procedure. If necessary, all participants have the opportunity to make a copy and have it notarized.

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If a citizen is not against privatization, but simply does not want to take part in it, he needs to write a refusal and have it notarized. In this case, registration of ownership occurs without hindrance, and the person who renounces his share will have the right to live in the privatized apartment for as long as he wishes.

What is a “Non-privatized apartment”?

Accordingly, a non-privatized apartment is a living space that is state or municipal property. People living in such an apartment have rights and obligations associated with it, specified in the social tenancy agreement. They do not have the right to make transactions with this housing (sell, donate, bequeath), rent it out, etc.

According to the laws of the Russian Federation, non-privatized municipal housing can be privatized at any time free of charge (from 2021 the right to free privatization has been declared unlimited). After privatization, it is removed from the balance sheet of the municipality (district, city, village) and becomes the private property of the people living in it.

ATTENTION! Not all housing can be privatized. Federal Law No. 1541-1 “On the privatization of housing stock in the Russian Federation” concerns only municipal (state) housing. You cannot privatize:

Service apartments
Rooms in a hostel owned by an enterprise or organization
Housing stock located in closed military camps (ZATO)

If you do not know the status of the apartment in which your family lives, you can apply for a certificate from the Unified State Register of Real Estate or find out through a special State Register service. You must indicate the address and cadastral data of the property. But usually the owner of the living space is indicated in a special line on the receipt for payment of utilities)

The hand of the state: tax rates for a privatized apartment for working citizens and pensioners

Common areas in an apartment building that are the common property of all residents are not subject to tax The owner pays for a privatized apartment located in an apartment building.

pensioners;

heroes of the USSR and RSFSR;

disabled people of groups I and II;

disabled since childhood;

participants of the Second World War and military operations in Afghanistan;

holders of the Orders of Glory of three degrees;

military personnel;

family members and parents of military personnel. Those killed in the performance of official duties;

liquidators of accidents at the Chernobyl nuclear power plant.

26 Aug 2021 uristlaw 276
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What is the difference?

The difference between a privatized and non-privatized apartment lies in the peculiarities of the property and non-property rights of the person living in it. These features should be carefully studied before deciding to privatize. In some cases, it is unprofitable to privatize an apartment, and it is better to remain in it under social rent conditions.

So, the main differences between a privatized and non-privatized apartment:

You can register anyone you want in a privatized living space. Only close relatives have the right to register in your municipal housing.
Having become the full owner of the apartment, its residents become responsible for the maintenance of the property as a whole. That is, the tenant is obliged to pay not only for the repair of his living space, but also for major repairs, as well as supporting work in the entire building. In practice, this means at least a twofold increase in rent.
The owner of a privatized apartment receives the right to use it at his own discretion: sell, mortgage, donate, exchange, bequeath, rent. A social tenancy agreement only implies living in a given living space. All other transactions are prohibited.
A non-privatized apartment can be privatized free of charge. Privatized. – deprivatize, that is, return it to the ownership of the state (municipality), also free of charge. You can only do both once. Re-privatization is not provided for by law.

Pros and cons of privatization

Already from the above differences it is clear that privatization has not only advantages, but also disadvantages. However, in the matter of privatization, the main question is not “is it good or bad”, but “is it right for me.”

It all depends on the specific life situation of each person or each family. In some situations, the disadvantages are insignificant compared to the advantages that privatization brings. In others, on the contrary, they can be of decisive importance and deprive privatization of any practical meaning. We propose to consider the advantages and disadvantages of the privatization procedure in more detail.

Advantages of apartment privatization in 2021

The person who privatizes the apartment becomes the owner, the owner of the property. In some cases, this may be liquid and expensive property.
This property goes to him free of charge, without redemption or additional expenses. During the privatization procedure, only government services for registering a change of ownership are paid.
Privatized housing can be used as a source of passive income: for example, renting it out to a private or legal entity.
You can make any transactions with privatized housing, use it as credit collateral, or borrow money against it.
The owner of privatized housing has the right to carry out redevelopment inside the apartment (of course, in agreement with the BTI, in order to prevent damage to the load-bearing structures of the building as a whole). In the case of social rent, tenants have the right only to make cosmetic repairs.
You cannot be evicted from a privatized apartment, even for huge rent debts. Whereas a social tenancy agreement can be terminated at any time if the tenant violates its terms.

Disadvantages of privatization in 2021

Housing maintenance costs increase significantly. The rent increases on its own, plus a monthly fee for major repairs of the building is added to it. This fact often becomes a very unpleasant surprise for many families. And for single pensioners it can be a real problem.
In addition, owners of privatized apartments pay property taxes. Typically this is 0.3% of the cadastral value of housing annually. This is a small amount, but still an additional expense, in return for which you actually “get nothing.”
If your municipal housing can be classified as “elite”, that’s one thing. But old, dilapidated housing stock is a completely different matter. The market value and attractiveness for tenants of an apartment in an old, worn-out building in a “not prestigious” area will only fall every year. In addition, the owner himself will have to deal with problematic sewerage, water supply, and electrical networks.

To privatize an apartment or not: legal advice

When free privatization first began, it was urgent (until 2004). Many people privatized apartments “just in case,” fearing that later it would only be possible to buy them back at market value. But the period for free privatization was extended several times, and finally, in 2021 it was canceled completely (Federal Law No. 14).

This means that, after living in municipal housing for a certain number of years, tenants can re-register it as their property free of charge, and there will be no need to buy out the apartments. To date, almost 80% of municipal housing in Russia has been privatized. This is the vast majority, but still 20% of residents who have not yet made a decision - that's millions of people. The following tips are intended for them.

Single elderly people, who are the only renters of housing, do not need privatization. Firstly, you will not have to pay high utility bills and property taxes. Secondly, a social tenancy agreement is a certain guarantee of the housing rights of pensioners. A non-privatized apartment cannot be sold, therefore, no “black realtors” can deprive a helpless elderly person of housing through deception or threats.
There is no point in privatizing housing in an emergency, dilapidated building. Or in a house that threatens to become unsafe in the coming years. You should wait for the administration's decision on resettlement and get new, more comfortable housing under a social rental agreement. And then this housing, which is more attractive from a commercial point of view, should be privatized.
To privatize service housing, it must first be transferred to the category of municipal housing. In some cases this is not possible (especially in military camps). And other owners of service apartments extremely rarely agree to their free privatization. But if, for example, an enterprise goes bankrupt, residential buildings on its balance sheet are transferred to the ownership of municipalities and are converted from departmental, service housing into municipal housing. Which can be privatized.
It makes sense to privatize an apartment if you want to improve your living conditions. Then you can sell it, and, adding savings, buy a more comfortable or spacious home.

If you have any questions or your situation is non-standard, please contact the lawyers of the Prav.io portal.

Reasons for the lack of apartment tax: why it doesn’t come

Taking into account the fact that tax payments are mandatory in Russia, any property owner should know why the apartment tax is not received and what to do in this case. This is especially important because if there are no payments, an individual will face consequences determined by current legislation.

The taxpayer's actual residence address has changed. The place of residence of the property owner has changed, but government authorities have not yet received information on this issue.
Congestion of postal routes and system failures. Even though taxes are sent via registered mail, it often happens that they arrive late.
Registration on the specialized portal “State Services”. Upon registration, the taxpayer stops receiving paper notifications, since all such information is located in his personal account. Thus, payments can be made online using the functionality of the site. If the property owner wishes to receive receipts in paper form again, he must contact the tax department with a corresponding request.
Minimum amount condition. If the total tax amount is less than one hundred rubles, the receipt is not sent by mail. The taxpayer receives a notification only at the end of the allowable period for payment of the state property tax.
Internal error in the tax system. In this case, the taxpayer is mistakenly not included in the group with a financial liability. This situation does not lead to the accrual of fines and penalties, since the authorized body is responsible for what was done.
If the property owner is a new taxpayer, the notification may not arrive due to the fact that it is not in the database. In this case, you must personally contact the responsible authority with a corresponding application.

This is interesting: If two people live in an apartment and one of them is the owner and both are veterans of labor, then in this case how are utilities reimbursed?