Lifetime maintenance agreement with dependency from a notary

What it is?

Differences in Concepts

There are three types of annuity - permanent, life annuity and dependent annuity. With a permanent annuity contract, payments are made without an expiration date. The parties to such an agreement can be both people and organizations.

Permanent rent, according to the Civil Code of the Russian Federation, can be paid in money, or in goods and services without cash payments. In this case, the payer can buy back the annuity by paying the entire required amount.

A life annuity agreement is concluded between individuals . The payer receives property under the contract, but must pay rent to its owner until the end of his (the owner’s) life. An annuity with maintenance or dependency is almost no different from a life annuity. The only thing is that the payer usually enters into an agreement with elderly people who will need to be helped financially and socially for the rest of their lives. According to the agreement, the lessor can support the owner or maintain and care for him.

Lifetime maintenance is the agreement itself between the disabled owner and the payer. If the agreement is dependent, this means that providing the owner of the home with everything necessary falls on the shoulders of the renter.

We consider the differences in more detail, as well as the pros and cons of a life annuity with and without maintenance, in a separate material.

Legal aspects

All features of an annuity agreement with contents are described in Articles 602–605 of the Civil Code of the Russian Federation. If the contract was concluded and not terminated, the property after the death of the dependent passes into the possession of the person who cared for him. The agreement is drawn up with a notary. The lawyer usually takes a commission from the value of the property - 0.5%.

Legal features of an annuity with lifelong maintenance:

• The contract must be notarized.
• The lessor receives only the property that belongs to the rentee.
• The rent payer not only helps the owner of the property financially, but also takes care of him - buys medicine and food, helps with cleaning, etc.
• The landlord cannot evict the owner at will - only mutually.
• Financial assistance is paid by the renter at least every month.
• The agreement can be terminated only at the initiative of the rentee.

The concept of a life annuity agreement

An annuity agreement can be for life or permanent. The first option is an agreement that implies the presence of two parties. On the one hand, the recipient of funds for the rent, or its holder, and on the other, the payer or renter, who makes lifelong payments for the received property.

Important nuances regarding life annuity:

• The recipient of real estate can only be an individual;
• The role of renter can be either an individual or a legal entity;
• The duration of the contract is the entire life of the one who receives the funds for it;
• For one property, the owner may have several rent recipients at once;
• The owner of the property has the right to unilaterally appoint another person as the recipient of the rent;
• Introducing any damage to the property after signing the contract is not a reason for the payer not to fulfill the conditions that were stipulated in the signed document;
• Rent for real estate is paid monthly. The document may also establish a different schedule for receiving payments;
• The amount paid each month cannot be less than the minimum wage. If we are talking about paying annuity with a dependent, then it is necessary to pay double the minimum rate;
• If the renters have a share of the property, then they have equal parts in percentage terms, otherwise, this ratio is indicated in the agreement.

Regarding the life annuity agreement, there are two types:

1. Annuity with lifetime payments;
2. With a dependent on a permanent (lifelong) basis;

The first option implies that payments come at a certain time throughout life for real estate, which can be houses or apartments, which are the subject of signing an agreement.

The next option implies the same established payment, to which is added the provision of the dependent’s livelihood, plus payment of the recipient’s obligations through the renter.

These two agreements have significant differences. The most important difference is that paying a dependent annuity, which is for life, requires signing a contract only if the property involved is real estate. Therefore, in this case, the range of payer obligations expands.

Procedure for provision

The obligations of the payer and payee are established by agreement. If the rent payer is late in payments, he pays interest to the owner under Article 395 of the Civil Code of the Russian Federation. The payer's obligations towards the annuity recipient include at a minimum:

• Presentation of the home.
• Nutrition.
• Providing clothing.
• If the owner cannot take care of himself, then take care.

Lifetime maintenance with dependents is carried out in accordance with Articles 602-605 of the Civil Code of the Russian Federation.

Required documents

Documents that the owner and renter need to collect:

• passports;
• application to the technical bureau. inventory;
• proof of ownership;
• a document that certifies ownership of the apartment;
• if the owner is married - consent of the husband/wife;
• real estate explication plan from the BTI;
• a certificate from the tax office confirming the absence of debt;
• a certificate from the housing office confirming that there is no debt for paying for utilities.

Registration cost

How much does it cost to sign a contract for an apartment for an elderly person? An annuity agreement with lifelong maintenance must be concluded with a notary. Therefore, this legal procedure is paid. The notary cannot independently set the amount - there is a specific rate for the fee. Most often, the rate is 0.5% of the property value.

According to the Civil Code of the Russian Federation, the amount of a notary's remuneration for certifying a transaction is limited. The duty cannot be less than 300 rubles, but should not exceed 20 thousand rubles. Therefore, the exact amount of the fee depends on the price of the property. The more expensive the apartments in the city or the house in the village, the greater the notary's fee will be.

The average area of ​​apartments in Russia at the end of 2021 is 49 square meters. We calculate the average duty price based on the price per square meter in the regions of the Russian Federation. The duty amount is calculated as 0.5% of the average cost of an apartment in the region or city. In cases where 0.5% of the cost is more than 20 thousand rubles, the maximum amount of duty is set at 20,000 rubles:

Briefly - how to conclude a rental agreement

• With the help of rent, you can purchase property in exchange for the obligation to maintain the former owner of the apartment. Maintenance means either payment of a specific amount monthly, or assistance in kind - for example, in the purchase of food and medicine until the death of the annuitant.
• The annuity contract can be canceled - for example, if the payer does not fulfill his obligations. In this case, the recipient will not return the payments, and the apartment will again return to his ownership.
• When agreeing to an annuity agreement, discuss all the conditions with the recipient in advance. You should discuss what specific assistance you will provide in exchange for the apartment.
• To conclude an agreement, contact a lawyer - you need to consider many nuances that depend on the specific situation.
• The contract must be certified by a notary - for this you will have to pay a fee of 0.5% of the cadastral value of the apartment.
• Then the agreement is registered in Rosreestr.
• If you have a rental agreement with maintenance, then the entire apartment becomes yours only after the death of the rent recipient. If the annuity is permanent, with specific payments, then the annuity can be redeemed by making a one-time annual payment amount, but not earlier than the period specified in the contract.

Is it possible to terminate and under what conditions?

The recipient of the rent, the owner of the property, has priority rights to terminate the rental agreement.

If the payer grossly violates the terms of the contract - does not pay payments, does not take care of the annuitant, although he is obligated, the contract is terminated. The annuity recipient, in turn, may demand that the payer return the property and redeem the annuity. The minimum amount of rent redemption is the amount of rent payments for one year. Compensation for damage will be required if the payer did not maintain the safety of the property. The payer must reimburse all expenses and losses during the use of the rentee's property.

If the annuity recipient unilaterally terminates the contract, the payer cannot demand a refund. The renter also has judicial protection - the recipient can unilaterally terminate the rent agreement only in court. Moreover, the owner is obliged to prove his case and the improper performance of duties by the payer in accordance with the Civil Code of the Russian Federation. The lessor can challenge the property owner's decision in court.

Conditions for termination of the contract by the recipient:

• The transaction was declared invalid - the terms of the contract were violated, the transaction was concluded under pressure, etc.
• Payments are overdue for more than 1 year.
• The court declared the renter insolvent.
• The terms of the contract were not fulfilled.

We discuss in more detail the question of how and under what conditions a life annuity agreement, including one with lifelong maintenance, can be terminated in a separate article.

Apartment after leaving

For many lonely old people, such an agreement is the only way to provide themselves with tolerable living conditions, receive a small additional income, and, in some agreements, help in running the household. Such an agreement is also beneficial for the other party. Anyone who undertakes to pay extra and help an elderly person receives ownership of his apartment. It is clear that with such a scheme, infirm people run the risk of running into scammers who can either drive the old man away from the world, or simply deceive him with payments.

The buyer also takes risks. As the court decision shows, he can immediately lose both the right to housing and all the money paid.

Meanwhile, life annuity contracts are becoming increasingly popular both in Moscow and in other Russian cities. At the same time, the number of scoundrels trying to profit from this type of cooperation with older people is also growing. How to deal with deception? Not every elderly person will be able to competently defend their interests in litigation; some are not even able to correctly fill out documents in court. What should they do? The answer is provided by an illustrative story with one such agreement.

That is why a fresh court decision is so important, which helped an elderly woman get rid of bonded rent.

An 82-year-old woman, a disabled person of the second group, entered into a lifelong maintenance agreement with her friend in 2008, according to which she transferred her ownership of her apartment in Moscow. Moreover, according to the terms of the agreement, the rent payer agreed to provide the elderly woman with housing, food, clothing, care, and necessary assistance, as well as pay her monthly rent payments and repair the apartment.

At first, the “good friend” regularly paid the old lady the promised contributions every month. True, immediately from the moment the contract was concluded, she refused any real help, including renovation of the apartment. And since May 2014, the new owner of the apartment stopped making monthly payments to the pensioner. After which the tenant even had to pay utility bills at her own expense so that the electricity in the apartment would not be turned off.

The pensioner turned to the prosecutor's office to protect her rights. Having established that the terms of the contract were indeed being violated, the prosecutor defended the rights of the 82-year-old Muscovite and filed a claim with the court to terminate the annuity contract. The court supported the position of the prosecutor's office. The court decision has already been sent to the Rosreestr department for re-registration of the apartment back to the former owner.

At the same time, the payments that the elderly woman received from the rent payer for 6 years will not have to be returned to her. The fact is that, according to the Civil Code, if the rent payer significantly violates its obligations, the rent recipient has the right to demand the return of the apartment or payment of the redemption price. In this case, the rent payer has no right to demand compensation for expenses incurred in connection with the maintenance of the rent recipient.

This story ended well. But, unfortunately, often people who sign an annuity agreement sign their own death warrant. At the end of last year, the capital was shocked by the death of 62-year-old Tamara Khokhryakova at her entrance, who was suddenly injected with a syringe with poison by two unknown men.

As it later turned out, the organizer of the crime was realtor Vitaly Studenikin, who created an entire “business” of killing pensioners. At least six more people became victims. All of them, shortly before their deaths, entered into life annuity agreements.

However, sometimes an annuity agreement is mutually beneficial. Old people receive a significant monthly increase in their pension plus other services provided for in the contract, and, say, a young couple gets the opportunity to eventually get an apartment for which they have no way to save up. The main condition is one thing - that both parties turn out to be decent people.

By the way, this scheme for buying a home has long been practiced in Europe. In many countries, you can purchase an apartment at a price significantly lower than the market price, but with the caveat that the owner will live in it until the end of his days.

According to Russian legislation, “lifetime annuity” is a set of rules of law governing the transfer of real estate from one person to another in exchange for rental payments to the previous owner of the property. Simply put, the buyer pays the seller a one-time portion of the cost of the apartment and undertakes to pay him the monthly rent specified in the contract in equal shares throughout the life of the property owner.

A distinctive feature of a life annuity is that the seller of such real estate still continues to live in the premises that have already been sold, but loses the opportunity to sell or donate the apartment.

According to real estate agencies, in Russia, an additional payment to a pensioner in the amount of 10-15 thousand rubles is usually established for the right of ownership under a annuity agreement. Sometimes a mandatory condition of the transaction is caring for the old man - the buyer will have to buy him medicine, food, and help if the pensioner is admitted to the hospital. Often the contract provides for payment of funeral expenses. But all this, according to lawyers, is discussed individually by the parties when concluding an agreement.

The main document drawn up in such transactions is a rent agreement, which regulates all parameters relating to the property, as well as the terms and conditions of payments. The legislation of the Russian Federation determines that the amount of the minimum rent must be at least one minimum wage, and when it is indexed, there must be corresponding increases in payments.

It should be noted that contracts for lifelong annuity and lifelong dependency (purchase of food, medicine, cleaning, etc.) are not legally connected in any way. Therefore, in such cases, two contracts are concluded at once.

Help "RG"

The cost of apartments under rental agreements in Moscow and the amount of rental payments for them

According to realtors, one-room apartments are most often sold under a rental agreement in Moscow. For example, now in this way you can buy a one-room apartment on the outskirts for 2.3 million. At the same time, the pensioner, who is now 66 years old, will need to pay 15 thousand rubles a month for life.

But a one-room apartment closer to the center is sold for 3.7 million rubles. The owner is 80 years old. She will need to pay 30 thousand rubles a month.

A two-room apartment in a good area is offered under a rental agreement for 2.2 million rubles. It is inhabited by spouses aged 60 and 70 years. They will need to pay an additional 30 thousand rubles per month. This apartment is sold immediately as a property, but with a delay in moving in and registration.

Explanations of "rg"

Advantages and disadvantages of a rent agreement for property owners:

1. The seller and his family members have the right to live in their apartment until their death.

2. The seller of the apartment has a regular source of income in the form of rent payments.

3. The contract may stipulate a range of services that the payer will provide to the annuitant for the rest of his life.

4. There is a danger of encountering dishonesty of the rent payer, who evades fulfillment or does not properly fulfill the terms of the contract. In this case, in order to terminate the annuity agreement or call on the other party to fulfill its terms, you will have to go to court or the prosecutor's office.

5. There is a risk that the “buyer” will turn out to be a fraudster and, being interested in the death of the “seller,” will contribute to this through his actions.

Expert opinion

Konstantin Aprelev, vice-president of the Russian Guild of Realtors:

Today there is a fairly serious criminal component in this area of ​​business. There are companies that specialize in this, and, of course, there is a threat that, having received an apartment, unscrupulous people deliberately create worse conditions for the pensioner, thereby shortening his life. Therefore, I consider entering into such contractual relationships with strangers or with some companies a rather high-risk situation, especially for single pensioners.

Where and how to find participants?

Close people

Often, close relatives of the owner - children, grandchildren, nephews - become rent payers. Elderly people can be sure that they will be taken care of. Relatives do not have to pay a large commission for registering an inheritance with a notary. But the owner may be a lonely person who cannot turn to the younger generation for help.

Firms

Often the payers are not individuals, but organizations. They can prove their solvency and often assume all responsibilities for caring for the elderly. Moreover, if an organization specializes in such transactions, it may have caregivers on its staff - professional assistants for disabled people.

Organizations also have a significant disadvantage - companies are interested in profits, so you need to be careful with them. It is believed that transactions with lifelong dependency are a danger for the elderly. Sometimes this is also a minus in the career of the realtor who certifies the contract. Only close people can care for older people with care and warmth. Therefore, such transactions usually do not concern anyone from the outside.

Rent payers can be found among adults and wealthy citizens who are reliable and would like to buy an apartment on favorable terms. It is better to look for renters among those who have enough time to care for an elderly person.

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.

What to expect from deals?

Benefits for all parties

• For the payer: the opportunity to purchase an apartment at a reduced price. Two minimum wages are often less than mortgage payments. An annuity agreement with lifetime maintenance is especially useful for large cities. In Moscow, city residents can afford an apartment until they are closer to 30-40 years old, and pay off the mortgage until retirement. Therefore, the idea of ​​​​obtaining square meters in this way seems attractive.
• For the recipient: to ensure a calm and secure old age. The recipient is protected by law on all sides, so older people are willing to make a deal.

Risks, pitfalls, bottlenecks and ways to get around them

For the payer

• Elderly people burdened with relatives. Distant relatives can claim ownership of the apartment. It is better to discuss all aspects of inheritance with the owner of the property in advance.
• Probability of deal termination. There are fewer scammers among rent recipients, but you still need to be careful when choosing an owner. Old people can be suspicious and suggestible.

Legal mechanism of the contract

• After signing the document, the rights to the property are transferred to the payer, but they are quite limited. It is possible to carry out any transactions with this property, including its use as collateral, only with the written consent of the rent recipient.
• The payer assumes maintenance obligations, which he must fulfill until the death of all persons indicated in the text as recipients of the annuity.
• In case of violation of its obligations by the payer, the recipient may, through the court, demand to terminate the annuity agreement and reclaim his property. All services and funds provided by the payer in favor of the recipient are not returned, since the content is provided on a non-refundable basis.

The document must be certified and registered by a notary. This is how the state protects older people from various types of fraud. After all, apartments and houses of elderly people in Moscow are of particular interest to criminals, so notarization of a document allows you to obtain a guarantee that the parties have tools to protect their interests.