FEDERAL LAW OF THE RUSSIAN FEDERATION

No. 102-FZ On mortgage (real estate pledge)

Accepted

State Duma

Approved

Federation Council

CHAPTER I. BASIC PROVISIONS

Article 1. Grounds for the emergence of a mortgage and its regulation

1. Under an agreement on the pledge of real estate (mortgage agreement), one party - the pledgee, who is a creditor under the obligation secured by the mortgage, has the right to receive satisfaction of his monetary claims against the debtor under this obligation from the value of the pledged real estate of the other party - the mortgagor, preferentially before others creditors of the pledgor, with exceptions established by federal law.

The mortgagor may be the debtor himself under the obligation secured by a mortgage, or a person not participating in this obligation (a third party).

The property on which the mortgage is established remains with the mortgagor in his possession and use.

2. To a pledge of real estate arising on the basis of a federal law upon the occurrence of the circumstances specified therein (hereinafter referred to as a mortgage by force of law), the rules on a pledge arising by virtue of a mortgage agreement are correspondingly applied, unless otherwise established by federal law.

3. The general rules on pledge contained in the Civil Code of the Russian Federation apply to relations under a mortgage agreement in cases where the specified Code or this Federal Law does not establish other rules.

4. A pledge of land plots, enterprises, buildings, structures, apartments and other real estate can arise only insofar as their circulation is permitted by federal laws.

Article 2. Obligation secured by a mortgage

1. A mortgage may be established to secure an obligation under a credit agreement, a loan agreement or another obligation, including an obligation based on purchase and sale, lease, contract, other agreement, damage, unless otherwise provided by federal law.

2. Obligations secured by a mortgage are subject to accounting by the creditor and debtor, if they are legal entities, in the manner established by the legislation of the Russian Federation on accounting.

Article 3. Requirements secured by a mortgage

1. A mortgage ensures payment to the mortgagee of the principal amount of debt under a loan agreement or other obligation secured by a mortgage in full or in part provided for by the mortgage agreement.

A mortgage established to secure the execution of a credit agreement or a loan agreement with the condition of paying interest also ensures payment to the creditor (lender) of the interest due to him for using the loan (borrowed funds).

Unless otherwise provided by the agreement, the mortgage also ensures payment to the mortgagee of the amounts due to him:

1) as compensation for losses and/or as a penalty (fine, penalty) due to non-fulfillment, delay in fulfillment or other improper fulfillment of an obligation secured by a mortgage;

2) in the form of interest for the unlawful use of someone else’s funds, provided for by the obligation secured by the mortgage or by federal law;

3) for compensation of legal costs and other expenses caused by the foreclosure of the pledged property;

4) to reimburse expenses for the sale of the pledged property.

2. Unless otherwise provided by the agreement, the mortgage secures the claims of the mortgagee to the extent that they have at the time of their satisfaction at the expense of the pledged property.

3. If the mortgage agreement specifies the total fixed amount of the mortgagee’s claims secured by the mortgage, the debtor’s obligations to the mortgagee in excess of this amount are not considered secured by the mortgage, with the exception of claims based on subparagraphs 3 and 4 of paragraph 1 of this article or on article 4 of this Federal Law.

Article 4. Securing additional expenses of the mortgagee with a mortgage

In cases where the mortgagee, in accordance with the terms of the mortgage agreement or due to the need to ensure the preservation of the property pledged under this agreement, is forced to bear the costs of its maintenance and/or security or to pay off the debt of the mortgagor for taxes, fees or utilities associated with this property payments, compensation to the pledgee for such necessary expenses is ensured from the pledged property.

Article 5. Property that may be the subject of a mortgage

1. Under a mortgage agreement, the real estate specified in paragraph 1 of Article 130 of the Civil Code of the Russian Federation, the rights to which are registered in the manner established for the state registration of rights to real estate and transactions with it, including.

(paragraph supplemented from January 11, 2005 by Federal Law of December 30, 2004 No. 216-FZ)

1) land plots, with the exception of land plots specified in Article 63 of this Federal Law;

2) enterprises, as well as buildings, structures and other real estate used in business activities;

3) residential buildings, apartments and parts of residential buildings and apartments, consisting of one or more isolated rooms;

4) dachas, garden houses, garages and other buildings for consumer purposes;

5) aircraft and sea vessels, inland navigation vessels and space objects.

Buildings, including residential buildings and other structures and structures directly connected to the land, may be the subject of a mortgage, subject to the rules of Article 69 of this Federal Law.

2. The rules of this Federal Law apply to the pledge of unfinished real estate being built on a land plot in accordance with the requirements of the legislation of the Russian Federation, including buildings and structures, subject to the rules of Article 69 of this Federal Law.

3. Unless otherwise provided by the contract, the thing that is the subject of the mortgage is considered pledged together with accessories (Article 135 of the Civil Code of the Russian Federation) as a single whole.

4. Part of the property, the division of which in kind is impossible without changing its purpose (indivisible thing), cannot be an independent subject of mortgage.

5. The rules on the mortgage of real estate accordingly apply to the pledge of the rights of the tenant under a lease agreement for such property (lease right), since otherwise is not established by federal law and does not contradict the essence of rental relations.

Article 6. The right to pledge property under a mortgage agreement

1. A mortgage may be established on the property specified in Article 5 of this Federal Law, which belongs to the mortgagor by right of ownership or by the right of economic management.

2. Mortgage of property withdrawn from circulation, property which cannot be foreclosed on in accordance with federal law, as well as property in respect of which mandatory privatization is provided for in accordance with the procedure established by federal law or the privatization of which is prohibited. *6.2)

3. If the subject of the mortgage is property, the alienation of which requires the consent or permission of another person or body, the same consent or permission is necessary for the mortgage of this property.

Decisions on the pledge of real estate that is state-owned and not secured by the right of economic management are made by the Government of the Russian Federation or the government (administration) of a constituent entity of the Russian Federation.

4. The right to lease may be the subject of a mortgage with the consent of the lessor, unless otherwise provided by federal law or the lease agreement. In the cases provided for in paragraph 3 of Article 335 of the Civil Code of the Russian Federation, the consent of the owner of the leased property or the person who has the right of economic management over it is also required.

5. A pledge of real estate is not the basis for releasing a person who acted as a mortgagor under a mortgage agreement from fulfilling the conditions under which he participated in an investment (commercial) competition, auction or otherwise in the process of privatization of the property that is the subject of this pledge.

6. The mortgage applies to all inseparable improvements to the subject of the mortgage, unless otherwise provided by the agreement or this Federal Law.

(the clause was additionally included on January 11, 2005 by Federal Law of December 30, 2004 No. 216-FZ)

Article 7. Mortgage of property in common ownership

1. On property that is in common joint ownership (without determining the share of each owner in the right of ownership), a mortgage can be established with the consent of all owners. Consent must be given in writing, unless federal law provides otherwise.

2. A participant in common shared ownership may pledge his share in the right to common property without the consent of other owners.

If, at the request of the mortgagee, foreclosure is applied to this share upon its sale, the rules of Articles 250 and 255 of the Civil Code of the Russian Federation on the pre-emptive right of purchase belonging to the remaining owners and on foreclosure on a share in the right of common ownership are applied, with the exception of cases of foreclosure on a share in the right of ownership of the common property of a residential building ( Article 290 of the Civil Code of the Russian Federation) in connection with the foreclosure of an apartment in this building.

CHAPTER II. CONCLUSION OF A MORTGAGE AGREEMENT

Article 8. General rules for concluding a mortgage agreement

The mortgage agreement is concluded in compliance with the general rules of the Civil Code of the Russian Federation on concluding agreements, as well as the provisions of this Federal Law.

Article 9. Contents of the mortgage agreement

1. The mortgage agreement must indicate the subject of the mortgage, its valuation, essence, size and deadline for fulfilling the obligation secured by the mortgage.

2. The subject of the mortgage is determined in the agreement by indicating its name, location and a description sufficient to identify this subject.

The mortgage agreement must indicate the right by virtue of which the property that is the subject of the mortgage belongs to the mortgagor, and the name of the body carrying out state registration of rights to real estate and transactions with it (hereinafter referred to as the body carrying out state registration of rights) that registered this right pledgor.

If the subject of the mortgage is a leasehold right owned by the mortgagor, the leased property must be defined in the mortgage agreement in the same way as if it were itself the subject of the mortgage, and the lease term must be indicated.

3. The valuation of the subject of the mortgage is determined in accordance with the legislation of the Russian Federation by agreement between the mortgagor and the mortgagee in compliance with the requirements of Article 67 of this Federal Law when mortgaging a land plot and is indicated in the mortgage agreement in monetary terms.

When mortgaging state and municipal property, its assessment is carried out in accordance with the requirements established by federal law, or in the manner prescribed by it.

The paragraph was deleted from November 13, 2001 by Federal Law of November 9, 2001 No. 143-FZ

In the case of a pledge of unfinished real estate that is in state or municipal ownership, the market value of this property is assessed.

(paragraph additionally included on November 13, 2001 by Federal Law of November 9, 2001 No. 143-FZ)

4. The obligation secured by a mortgage must be named in the mortgage agreement, indicating its amount, the basis for its occurrence and the deadline for fulfillment. In cases where this obligation is based on any agreement, the parties to this agreement, the date and place of its conclusion must be indicated. If the amount of the obligation secured by the mortgage is subject to determination in the future, the mortgage agreement must indicate the procedure and other necessary conditions for its determination.

5. If the obligation secured by a mortgage is subject to execution in parts, the mortgage agreement must indicate the terms (frequency) of the relevant payments and their amounts or conditions allowing these amounts to be determined.

6. If the rights of the mortgagee in accordance with Article 13 of this Federal Law are certified by a mortgage, this is indicated in the mortgage agreement, with the exception of cases of issuance of a mortgage under a mortgage by force of law.

(clause supplemented on February 14, 2002 by Federal Law of February 11, 2002 No. 18-FZ)

Article 10. State registration of the mortgage agreement.

1. A mortgage agreement is concluded in writing and is subject to state registration.

An agreement that lacks any data specified in Article 9 of this Federal Law, or violates the rules of paragraph 4 of Article 13 of this Federal Law, is not subject to state registration as a mortgage agreement.

Failure to comply with the rules on state registration of a mortgage agreement entails its invalidity. Such an agreement is considered void.

2. The mortgage agreement is considered concluded and comes into force from the moment of its state registration.

3. When including a mortgage agreement in a loan or other agreement containing an obligation secured by a mortgage, the requirements established for a mortgage agreement must be met with regard to the form and state registration of this agreement.

4. If the mortgage agreement states that the rights of the mortgagee in accordance with Article 13 of this Federal Law are certified by the mortgage, together with such an agreement the mortgage is submitted to the body carrying out state registration of rights. If the conclusion of a corresponding agreement entails the creation of a mortgage by force of law, in the case of drawing up a mortgage note, the corresponding agreement and the mortgage note are presented. The body carrying out state registration of rights makes a mark on the mortgage about the time and place of state registration, numbers and seals the sheets of the mortgage in accordance with paragraph two of paragraph 3 of Article 14 of this Federal Law.

(article as amended, put into effect on January 11, 2005 by Federal Law of December 30, 2004 No. 216-FZ)

Article 11. Emergence of a mortgage as an encumbrance

1. State registration of a mortgage agreement is the basis for making a mortgage entry in the Unified State Register of Rights to Real Estate and Transactions with It.

State registration of an agreement giving rise to a mortgage by force of law is the basis for making a record of the emergence of a mortgage by force of law in the Unified State Register of Rights to Real Estate and Transactions with It.

The paragraph became invalid on January 1, 2005 - Federal Law of November 2, 2004 No. 127-FZ.

2. A mortgage as an encumbrance on property pledged under a mortgage agreement arises from the moment of conclusion of this agreement.

In the case of a mortgage, by force of law, the mortgage as an encumbrance of property arises from the moment of state registration of ownership of this property, unless otherwise established by the agreement.

3. The rights of the mortgagee (the right of pledge) to the property provided for by this Federal Law and the mortgage agreement are considered to arise from the moment an entry about the mortgage is made in the Unified State Register of Rights to Real Estate and Transactions with It, unless otherwise established by federal law. If the obligation secured by the mortgage arose after the entry of the mortgage into the Unified State Register of Rights to Real Estate and Transactions with It, the rights of the mortgagee arise from the moment this obligation arises.

The rights of the pledgee (the right of pledge) to the pledged property are not subject to state registration.

(article as amended, put into effect on February 14, 2002 by Federal Law of February 11, 2002 No. 18-FZ)

Article 12. Warning to the mortgagee about the rights of third parties to the subject of mortgage

When concluding a mortgage agreement, the mortgagor is obliged to warn the mortgagee in writing about all the rights of third parties to the subject of the mortgage known to him at the time of state registration of the agreement (rights of pledge, lifelong use, lease, easements and other rights). Failure to fulfill this obligation gives the mortgagee the right to demand early fulfillment of the obligation secured by the mortgage or change the terms of the mortgage agreement.

CHAPTER III. MORTGAGE

Article 13. Basic provisions on the mortgage

1. The rights of the mortgagee under the obligation secured by a mortgage and under the mortgage agreement may be certified by a mortgage, unless otherwise established by this Federal Law.

A mortgage may certify the rights of the mortgagee under the mortgage by force of law and under the obligation secured by this mortgage, unless otherwise established by this Federal Law.

(paragraph additionally included on February 14, 2002 by Federal Law of February 11, 2002 No. 18-FZ)

2. A mortgage is a registered security certifying the following rights of its legal owner:

The right to receive performance under a monetary obligation secured by a mortgage, without providing other evidence of the existence of this obligation;

The right of lien on property encumbered with a mortgage.

(clause as amended, put into effect on February 14, 2002 by Federal Law of February 11, 2002 No. 18-FZ)

3. The obligated persons under the mortgage are the debtor for the obligation secured by the mortgage and the mortgagor.

4. Drawing up and issuing a mortgage is not allowed if:

1) the subject of the mortgage is:

Enterprise as a property complex;

(paragraph no longer in force on February 10, 2004 - Federal Law of February 5, 2004 No. 1-FZ(

Forests;

The right to lease the property listed in this subclause;

2) a mortgage secures a monetary obligation, the amount of debt for which is not determined at the time of concluding the agreement and which does not contain conditions allowing this amount to be determined at the appropriate time.

In the cases provided for in this paragraph, the terms of the mortgage in the mortgage agreement are invalid.

5. The mortgage is drawn up by the mortgagor, and if he is a third party, also by the debtor for the obligation secured by the mortgage.

The mortgage is issued to the original mortgagee by the body carrying out state registration of rights after state registration of the mortgage.

(paragraph as amended, put into effect on January 11, 2005 by Federal Law of December 30, 2004 No. 216-FZ)

The transfer of rights under the mortgage and the pledge of the mortgage are carried out in the manner established by Articles 48 and 49 of this Federal Law.

6. The debtor under an obligation secured by a mortgage, the mortgagor and the legal owner of the mortgage may, by agreement, change the terms of the mortgage previously established by them.

7. When concluding an agreement specified in paragraph 6 of this article and paragraph 3 of Article 36 of this Federal Law, and transferring a debt under an obligation secured by a mortgage, these agreements provide for:

Or making changes to the contents of the mortgage by attaching the original of this agreement to it and indicating in the text of the mortgage itself the agreement as a document that is an integral part of the mortgage, in accordance with the rules of part two of Article 15 of this Federal Law;

Or cancellation of the mortgage and at the same time the issuance of a new mortgage, drawn up taking into account the relevant changes.

State registration of an agreement to change the contents of a mortgage must be carried out within one day from the moment the applicant applies to the body carrying out state registration of rights. State registration of such an agreement is free of charge.

In case of cancellation of the mortgage and at the same time the issuance of a new mortgage, together with an application for making changes to the records of the Unified State Register of Rights to Real Estate and Transactions with It, the mortgagor transfers to the body carrying out state registration of rights a new mortgage, which is handed over to the mortgagee in exchange for the existing in his legal possession of the mortgage.

The canceled mortgage is stored in the archives of the body carrying out state registration of rights until the mortgage registration record is redeemed.

(clause as amended, put into effect on January 11, 2005 by Federal Law of December 30, 2004 No. 216-FZ)

Article 14. Contents of the mortgage

1. The mortgage at the time of its issuance to the original mortgagee by the body carrying out state registration of rights must contain:

(paragraph supplemented on February 14, 2002 by Federal Law of February 11, 2002 No. 18-FZ; as amended by Federal Law of December 30, 2004 No. 216-FZ, entered into force on January 11, 2005 - see previous edition)

1) the word “mortgage” included in the title of the document;

2) the name of the pledgor and an indication of the place of his registration or his name and an indication of the location, if the pledgor is a legal entity;

3) the name of the original pledgee and an indication of the place of his registration or his name and an indication of the location if the pledgee is a legal entity;

(subparagraph as amended, entered into force on January 11, 2005 by Federal Law of December 30, 2004 No. 216-FZ)

4) the name of the loan agreement or other monetary obligation, the execution of which is secured by a mortgage, indicating the date and place of conclusion of such an agreement or the basis for the occurrence of the obligation secured by the mortgage;

5) the name of the debtor under the obligation secured by the mortgage, if the debtor is not a mortgagor, and an indication of the place of registration of the debtor or his name and location, if the debtor is a legal entity;

(subparagraph as amended, entered into force on January 11, 2005 by Federal Law of December 30, 2004 No. 216-FZ);

6) an indication of the amount of the obligation secured by the mortgage and the amount of interest, if they are payable on this obligation, or the conditions that allow this amount and interest to be determined at the appropriate time;

7) an indication of the deadline for payment of the amount of the obligation secured by the mortgage, and if this amount is payable in installments - the timing (frequency) of the relevant payments and the amount of each of them or the conditions allowing to determine these terms and amounts of payments (debt repayment plan);

8) the name and description sufficient for identification of the property on which the mortgage is established, and an indication of the location of such property;

9) monetary value of the property on which the mortgage is established, and in cases where the establishment of a mortgage is mandatory by law, the monetary value of the property, confirmed by the conclusion of the appraiser;

(subparagraph as amended, entered into force on November 13, 2001 by Federal Law of November 9, 2001 No. 143-FZ)

10) the name of the right by virtue of which the property that is the subject of the mortgage belongs to the mortgagor, and the body that registered this right, indicating the number, date and place of state registration, and if the subject of the mortgage is a lease right belonging to the mortgagor - the exact name of the property that is the subject lease, in accordance with subparagraph 8 of this paragraph and the validity period of this right;

11) an indication that the property that is the subject of the mortgage is encumbered with the right of lifelong use, lease, easement, or other right, or is not encumbered with any of the rights of third parties subject to state registration at the time of state registration of the mortgage;

12) the signature of the mortgagor, and if he is a third party, also of the debtor under the obligation secured by the mortgage;

13) information on state registration of mortgages provided for in paragraph 2 of Article 22 of this Federal Law;

(subparagraph as amended, entered into force on January 11, 2005 by Federal Law of December 30, 2004 No. 216-FZ)

14) indication of the date of issue of the mortgage to the original mortgagee. In the case of a mortgage being issued under a mortgage, by force of law, inclusion in the mortgage of the data specified in subclause 10 of this clause is ensured by the body carrying out state registration of rights. The procedure for including this data in the mortgage is determined by Article 22 of this Federal Law.

(subparagraph supplemented on February 14, 2002 by Federal Law of February 11, 2

Federal Mortgage Law

A mortgage is a pledge of expensive large property with the right of ownership granted to the lender who lent the money. The debtor signs a mortgage agreement for his property and makes a promise to the creditor to repay the debt in money or with the pledged property if he cannot repay in cash. You can mortgage and buy housing, land, yacht, car and other property. From the moment the property is purchased with a mortgage, it becomes the property of the borrower. A common mortgage option is buying an apartment on credit. Often the purchased housing is used as collateral, but you can provide an existing apartment. Mortgage loans are issued by banks. Everyone's loan terms are different. The Federal Law on Mortgages regulates the provisions for the issuance and use of mortgages in Russia.

Mortgage law with latest changes: innovations in 2019

In 2019, the President of the Russian Federation introduced amendments to Federal Law 102 on mortgages. According to new data, the following points have appeared:

1. It became possible to register parking spaces as a mortgage. In this case, the mandatory registration of mortgages is cancelled. This function is implemented only when necessary.
2. The registration regulations, their terms and the possibility of suspension were cancelled. These issues have been regulated since this year by another Federal Law No. 218 of 2015.

In addition, according to the new mortgage legislation, several points have lost their validity. For example, paragraph 1 of article number 22, as well as paragraph 3 of article number 25. The meaning of articles 27 and 28 was also completely lost. They concerned regulatory issues in the process of challenging the registration of a mortgage loan. The latest changes were a legal reduction in the base interest rates on loans issued with government support. Starting from January 1, 2019, their size ranges from 9 to 11.4%. To achieve this, significant amendments were made regarding the collection of money from debtors. Now the amount of debt compensation directly depends on the interest rate of the Central Bank.

Also, changes to the mortgage law in 2019 affected a moratorium on early repayment of mortgage loans, but until now, this amendment has not been approved by the authorities. Currently, they allow borrowers to make payments on their official obligations earlier than the specified deadline, without imposing any penalties.

Also, fines and penalties for mortgage debtors, which previously amounted to about 20% per year, were softened. Now this penalty will need to be paid depending on the base rate from the Central Bank.

Features of the deadlines for formalizing the process specified in the new law

The Mortgage Lending Law considers this process, depending on what type of property is being purchased, what is the collateral. The differences in the procedure depend on these points. For residential real estate, up to 5 days are given; non-residential assets, including land areas of the building, commercial and industrial real estate, receive a period of up to 15 days. For other objects the period is up to 30 days. With notarized confirmation of the pledge agreement, the entire procedure can be reduced to 5 days, but no more.

Putin's order to reduce mortgage rates below 8%

The President of the Russian Federation introduced instructions to bring the rate on mortgage loans to a level of less than 8%. This decision must be put into effect before 2024; it is still considered as Putin’s new law on mortgages.

This is exactly what is discussed in the decree of the head of the country, entitled “National technical development objectives for the period until 2024.” This law was published on the official Kremlin resource.

The Government of the Russian Federation has instructed to provide affordable housing to many families whose income is equal to the average by 2024. That is why interest rates should not exceed 8% per year. It was also noted that in the current six months it is necessary to reach a level that would allow at least 5 million Russian families to improve their own living conditions every year. Earlier, the head of Sberbank stated that his bank is already ready to reduce mortgage rates to 7% for 2 years, he will try to do this earlier. According to experts, the rate reduction will occur to 6.2% by the end of this year.

Putin signed the law on mortgages, but for it to take effect, the client must first take out insurance, and after submitting a personal insurance agreement to the banking institution, sign an agreement to insure the home. We also note that subsidies can be offered by a country only when the borrower has fully complied with all requirements, and clients on the issued loan make payments in clearly indicated lines. This approach on the part of the Russian Federation will become an incentive for citizens to increase the birth rate in the country.

The current version of the Mortgage Law 2019: the reason for developing the program

The Federal Law on Mortgage Lending was put into effect because in 2018 it became clear that the work of construction companies and developers follows a clearly coordinated pattern, with their own preferences taken into account as guidelines. The buyer is left to decide whether to purchase apartments or not, solely based on their own capabilities. As a result, a situation has arisen in the Russian Federation where developers are unable to sell new multi-apartment buildings, and buyers are unable to become their owners due to their high cost. This led to a lose-lose situation for both sides, developers went bankrupt, banks did not return the money invested in construction, and citizens had no place to live, since bank interest rates did not allow families with small children to obtain mortgages. That is why a new mortgage law was adopted in 2019 . According to the ruling branches of the state, such a decision will be:

• increase the birth rate in the country;
• reduce the key interest rate of the Central Bank of the Russian Federation, which will make the mortgage offer as affordable as possible for the population;
• revitalize the real estate market, register completed properties, apartment buildings that are still under construction;
• return to banking institutions the funds used to finance projects;
• help families purchase their own housing, this will mainly affect the economy class, this decision will occur due to a reduction in the interest that must be paid to the bank;
• return to banking companies the difference in interest in the form of subsidies that they may lose on loans issued to citizens of the Russian Federation.

In addition, protection of citizens’ deposits will be ensured when purchasing new housing under the DDU.

To achieve all the goals set, the President, the Ministry of Finance and the Central Bank issue relevant decrees and revise legislation. For the President of the Russian Federation, regulation of the activities of banking systems became a priority issue. Therefore, he took up the problem of reducing the key rate when applying for a mortgage. The Mortgage Law guarantees that in the coming year mortgages, as well as other credit products, will become more accessible to average citizens of the Russian Federation.

Mortgage “by force of law” or “by force of contract”

The Real Estate Mortgage Law provides for the conclusion of the following mortgage agreements:

• “By virtue of law” is the purchase, construction, sale of real estate on credit and rent. When buying a home, a person uses his own money or borrowed money. A credit or loan agreement is drawn up for the borrowed amount. The mortgage is legally registered at the time the purchase and sale agreement is drawn up. The owner of the property changes automatically. An additional statement from both parties is not necessary.
• “By virtue of the contract” – the pledge agreement is drawn up by means of an application from both parties to the Registration Chamber. For home renovation, opening a business, education or other event, people can mortgage their own property.

indicates that each case must be registered in the Unified State Register, otherwise the contract is considered invalid. In both cases, the property is assigned to the person whose name appears on the Certificate of Title. The owner can use and live in the mortgaged housing and must take care of it. You cannot sell or provide collateral for other loans unless this is specified in the mortgage agreement. You can freely dispose of the property after full repayment of the loan.

If the debtor is unable to repay the loan, then the real estate mortgage law puts the lender first in line to collect the money from the borrower. This gives him an advantage over other creditors (if there are any) who want to receive money from the debtor. According to the law, the mortgaged apartment will be sold at public auction. The proceeds must cover the mortgage debt and the lender's losses (loan interest, auction costs, penalties, apartment maintenance costs). It happens that the amount received is not enough to cover all costs. In this case, federal mortgage law requires that the borrower still fulfill his mortgage obligations. The mortgaged property has been sold, which means the mortgage agreement has been implemented. The lender writes off the remaining debt and has no right to demand it from the borrower.

Mortgage under new legislation 2019 differs in several parameters. Let's look at the main differences. According to the legal type of mortgage, the collateral is the apartment being purchased, the one that the borrower decided to purchase. The subject of a contractual mortgage can be any other type of real estate that the buyer has.

Registration of a mortgage loan is carried out in parallel with the registration rights to residential real estate, and a contractual one - after the document of purchase and sale has been drawn up. Registration of a legal mortgage does not involve the collection of a state fee, unlike the one that enters into force in the contract.

Thanks to the new legislation of the Russian Federation, mortgages will become even more accessible to citizens of the country.

Procedure for registering a mortgage

From July 16, 1998 N102, the federal law on mortgages regulates the registration of mortgages. If it is based on an agreement, then in order to carry out state registration it is necessary to submit applications from both parties to the agreement. The borrower must provide a list of documents:

• signed mortgage agreement;
• documents accompanying the contract;
• receipt of payment of state duty.

The Real Estate Mortgage Law also determines the timing of registration. Legislation limits them to one month. In order to register a mortgage in the Unified Register, you need to make a certain entry in it, which will certify the borrower’s right to receive property under the mortgage. The recorded date is considered the date of registration. Without this procedure, the transaction is considered incomplete and does not give the borrower rights to housing.

The mortgage agreement must contain:

• subject of mortgage;
• assessed value;
• size and term of loan repayment;
• right (ownership, lease, etc.), on the basis of which the mortgaged property is located with the borrower, indicating the state body where his right to real estate was registered.

Mortgage conditions

The Federal Law on Mortgage determines that the objects of a mortgage can be one real estate or several types of real estate based on the following conditions for issuing a mortgage loan:

• if the property is owned by a creditor or has the right of economic ownership;
• if the ownership of the real estate is registered as a separate object;
• other real estate (can also be real estate under construction), which after concluding a mortgage agreement will become the property of the mortgagor;
• real estate that is an object of a state or municipal enterprise on the basis of economic ownership;
• share of the property.

The property is pledged with all its essential accessories. If a plot of land is pledged, the mortgage covers the buildings located on it. The terms of the mortgage provide that the value of the collateral property is determined by the consent of both parties with the help of an independent assessment by an expert of the mortgaged property.

The Real Estate Mortgage Law stipulates the conditions for obtaining a mortgage loan:

• Annual interest rate.
• Loan amount. It can be 70 or 80% of the total cost of the purchased home. The rest is considered as the down payment that the borrower makes when receiving a loan. The borrower will be able to increase the loan amount with the help of co-borrowers. This could be a husband or wife, relatives or other individuals. When calculating the amount of the mortgage loan, the bank will take into account their degree of relationship and income ratio. The responsibility of the co-borrower is governed by the mortgage agreement.
• Calculation of payments. The remaining amount that the borrower will give to the lender depends on it. He has the right to choose the loan currency himself.
• Confirmation of the borrower's income. The list of income and confirmation form vary from bank to bank. Many require a certain amount of work experience in one job.
• Availability of guarantors.
• Additional costs for obtaining a loan are generally 10% of the down payment amount. The borrower must be prepared for this.
• Credit term.

How to get a mortgage at 6% under the new legislation

The Federal Mortgage Law states that if mortgage payments are already in progress, you will simply need to provide proof of the birth of your children. Then you need to draw up an application for a year. In this case, the bank will restructure the payment that remains. If you are just planning a mortgage, then you need to collect a standard package of documents to get a loan. These include:

• a completed mortgage application;
• passport, as well as its scanned version;
• a photocopy of the work book;
• notification of income levels drawn up in form 2NDFL;
• if individual entrepreneur - a copy of the state registration and tax return;
• scanned versions of children's birth certificates;
• purchase and sale agreement or document on participation in shared construction.

If controversial situations arise or banks want confirmation of this or that information, additional documents may be required. They are issued at the request of the manager of a financial institution.

Refinancing a mortgage after the birth of a child

The current version of the Mortgage Law states that if the loan was issued after 2018, and then during the period up to 2022 inclusive, the family has a second or third child, they are given the opportunity to refinance the mortgage. Those who took part in the subsidy program, from the moment of the birth of their second child, are also offered a preferential mortgage, but upon the birth of the third.

What are the requirements for a loan?

Putin’s mortgage law in 2019 will be relevant for citizens whose loan agreements meet several parameters:

• the loan is issued exclusively in rubles and no earlier than January 1, 2018;
• the loan amount should not exceed RUB 3,000,000. for regions of the Russian Federation and does not exceed 8 million rubles. for Moscow and the region, as well as St. Petersburg;
• the down payment must be at least 20% of the total cost of the apartment;
• the interest rate will be 6% at the time of subsidization;
• a mandatory condition is the availability of life insurance for the borrower and the object from the moment of completion of its construction.

Also keep in mind that mortgage repayments under Federal Law 102 are carried out using annuity payments.

Changes in mortgage risk ratios starting in 2019

Many citizens of the Russian Federation dream of getting their own home, but in most cases they do not have enough financial resources to buy it, so they are forced to take out a mortgage. When you take out a mortgage loan, the property you are purchasing is used as collateral. The new mortgage law of 2019, like the previous one, states that if it is impossible to pay off one’s own debt on a mortgage loan, the client will lose the purchased home. This outcome is not beneficial for either banks or borrowers. But when providing a mortgage loan, banks still want to assess their possible financial risks. For this purpose, certain analyzes and reports are carried out. In addition, it will be necessary to assess the financial condition of the client who wants to take out a loan, as well as analyze certain conditions that guarantee the financial institution insurance and stability.

Recently, changes have been made to mortgage laws regarding the risk factor for low down payment mortgages. Starting January 1, 2019, it increases from 150 to 200%. This decision has been updated to ensure financial stability. This change applies to loans that will be issued from January 1 of this year. The central bank also announced that this lending segment is the most risky. Therefore, increasing the ratio is a completely justified decision, given that these loans have recently begun to grow in quantity.

Of course, banking companies assess the level of solvency of their own borrowers before they provide a loan. In this case, the client’s monthly income level, the presence of guarantors, the composition of the family, and so on are necessarily considered. In any case, in order to obtain a mortgage, a financial institution will require the provision of many facts that will document its level of income.

Of course, many families require the opportunity to take advantage of mortgage lending in order to receive government support in this matter. Based on the characteristics of the modern market, it is unrealistic to immediately collect the required amount of funds to purchase a home. Therefore, the latest edition of Federal Law 102 on mortgages will make this type of loan an even more popular option among others.

In the Russian Federation, VTB 24 Bank and Sberbank are very active in mortgage lending. There are also many financial institutions that deal directly with mortgages, such as the Housing Finance Bank. UniCredit and Alfa can also provide favorable offers. The Mortgage Law 102 Federal Law stipulates that the client must choose a decision on cooperation directly after studying all proposals.

Proposal from banks in the latest edition of the Federal Law on Mortgage

Safety of the mortgaged property

Federal Law on Mortgage dated July 16, 1998 N102 obliges the borrower to maintain the mortgaged property in proper condition using his own funds. If necessary, he must carry out routine repairs and restore minor damage at his own expense. The borrower must notify the lender if the condition of the mortgaged property has deteriorated or been lost. When applying for a mortgage, the lender has the right to document and physically verify the condition of the mortgaged property. The law gives him this right for the duration of the mortgage agreement.

Underwater rocks

Real Estate Mortgage Law admits that the apartment can be mortgaged by a third party who is not in the loan agreement. If he is gone, the person for whom the money was borrowed will receive ownership of this housing, with the transfer of mortgage responsibilities to him by virtue of the contract. It is impossible to sell this apartment without the consent of the lending bank. If a husband or wife bought real estate while married, then in the event of a divorce, the federal mortgage law gives the spouses the right to divide the mortgaged apartment, even if they have not repaid the debt. No matter who the apartment is registered to, the second may demand 50% of the housing, even if he is not going to repay the loan to the bank in the future. To prevent such a situation, spouses enter into a prenuptial agreement at the stage of registering a mortgage. It indicates the sole owner of the property to whom the loan is issued.

Advantages and disadvantages of a mortgage

The main advantage of a mortgage is that instead of saving for many years the necessary amount to buy a home, the federal mortgage law allows you to move into a new apartment or house right now. In this case, the mortgaged housing becomes the property of the borrower. Family members of the borrower can be registered in the new apartment. For security purposes, the risks of loss of ownership of the apartment and its damage, as well as loss of the borrower’s ability to work, are insured. In addition, a mortgage also has a number of advantages:

• The borrower is given a property tax deduction. He reduces the interest rate due to the fact that he does not have to pay income tax on the amount spent on the purchase of an apartment and on interest.
• The long loan term keeps the monthly payments small, which means they are not too burdensome.
• For certain categories of people, the existence of social mortgages in their region may come as a surprise.

The disadvantage of a mortgage is that you “overpay” for an apartment. It can reach 100%. The mortgage “overpayment” includes the annual costs of compulsory insurance and interest on the loan. Another disadvantage is that banks have many requirements for borrowers: registration, Russian citizenship, proof of income, length of service in one place, guarantors, etc.

To solve the housing problem with the help of a mortgage, it is important to find a compromise between the positive and negative aspects of a mortgage and choose a worthy partner (bank).

Article 77. Mortgage of residential houses and apartments purchased with a loan from a bank or other credit organization

1. Residential premises acquired or built in whole or in part using credit funds from a bank or other credit organization or funds from a targeted loan provided by another legal entity for the acquisition or construction of the specified residential premises are pledged from the moment of state registration of the mortgage in the Unified State Register of Real Estate .

2. The rules on the pledge of real estate arising by virtue of an agreement are applied to the pledge of a residential building or apartment arising on the basis of paragraph 1 of this article.

3. The guardianship and trusteeship authorities have the right to give consent to the alienation and (or) transfer to a mortgage of residential premises in which the family members of the owner of this residential premises who are under guardianship or trusteeship live or minor members of the owner’s family left without parental care (which is known to the guardianship authority and trusteeship), if this does not affect the rights or interests protected by law of these persons.

The decision of the guardianship and trusteeship authorities to give consent to the alienation and (or) mortgage of the residential premises in which these persons live, or a reasoned decision to refuse such consent must be submitted to the applicant in writing no later than 30 days after the date of filing applications requesting such consent.

The decision of the guardianship and trusteeship authorities can be challenged in court.

4. Residential premises (living premises) acquired or built in whole or in part using savings for housing provision for military personnel provided under a targeted housing loan agreement in accordance with the Federal Law "On the savings-mortgage system for housing provision for military personnel" is considered to be pledged with the moment of state registration of the borrower's ownership of this residential building or this apartment. In the case of using credit (borrowed) funds from a bank or other organization, it is considered to be pledged (mortgage) by force of law with the relevant creditor and with the Russian Federation represented by the federal executive body that ensures the functioning of the savings-mortgage housing system for military personnel that provided the target housing loan for the purchase or construction of residential premises (residential premises).

In this case, a mortgage note is not issued for the purpose of certifying the rights of the Russian Federation under the obligation secured by the mortgage. If a residential premises (residential premises) are pledged simultaneously to the corresponding creditor and the Russian Federation, the claims of the Russian Federation are satisfied after the requirements of the specified creditor are satisfied.

Welcome! In this post we will analyze the federal law on mortgages as collateral for real estate. You can download the current version of the law for 2020, find out the latest changes, the history of the document, as well as expert commentary on the main articles.

For 84 years of the 20th century there was no mortgage in Russia. From the very beginning of their regime, the USSR authorities deprived the country's population of the right to private property. Mortgages according to the new rules appeared in Russia only at the end of the 20th century. For its development to its present state, fundamental changes were required in the state’s attitude to property relations and housing construction. In addition, major legislative changes were required.

Only on the eve of 1991 did the first prerequisites for the revival of the mortgage institution in Russia appear. This was the Law on Property, adopted in December 1990. Then, until 1993, laws on collateral and on the fundamentals of housing policy were successively adopted. The main provisions are also enshrined in the Civil Code. People are starting to think about real estate mortgages more and more often.

These laws allowed dozens of banks to establish a system for issuing mortgage loans by the end of 1994. At the same time, this business was poorly controlled by a meager set of regulatory frameworks in this area, which did not allow mortgages to reach a high level of development and transparency. A fundamentally new and powerful federal law was required.

It was adopted on July 16, 1998, a month before the severe crisis of the Russian economy. 102 of the Federal Law for mortgages has become a kind of bible, which, together with the civil code, made it what it is now.

Latest changes and current version of the law

Over the course of almost 20 years, numerous adjustments have been made to the mortgage law related to the development of mortgages and changes in other regulatory documents. The current edition is dated July 3, 2016, with amendments dated July 1, 2017.

The most important events in the mortgage market in 2016 that influenced mortgage legislation were:

1. Legislative limitation on the amount of penalties for late repayment of a loan (should not exceed the key rate of the Central Bank on the date of conclusion of the loan agreement).

A few words about the key rate of the Central Bank. In simple words, this is the interest rate at which banks take short-term loans (1 week) and open deposits with the Central Bank of the same terms. From May 2, 2017, the rate is 9.25%.

1. Mandatory notarization of transactions with real estate that is in shared ownership.

That is, now in order to sell an apartment divided into shares, it is not enough to conclude a purchase and sale agreement in simple written form. It is necessary to visit a notary and formalize the transaction according to his form. Accordingly, the cost of registration has increased significantly.

1. Changing the procedure for calculating tax on the sale of an apartment. From 01/01/2016, the period of ownership of real estate, after which the owner is exempt from paying sales tax, has increased from 3 to 5 years. In addition, the tax amount is now calculated from the cadastral value or from the value specified in the purchase and sale agreement, whichever is greater. That is, transactions with undervaluation in the contract have lost their meaning, since the cadastral value is approximately equal to the market value.

There is good news. If ownership was registered before 01/01/2016, the period remains the same - 3 years.

Example. Citizen Ivanov purchased an apartment worth 3,000,000 rubles. in April 2016. In May 2017, he sold it. Cadastral value - 3,000,000 rubles, under the purchase/sale agreement - 1,000,000 rubles. The tax will be calculated based on the cadastral value in the amount of 2,000,000 rubles. (minus tax deduction of 1 million) and will be equal to 260,000 rubles.

1. Another good news for borrowers under the Military Mortgage program. Now information on such agreements will not be taken into account in the serviceman’s credit history. In fact, he himself does not pay the loan. The state does this for him.
2. Since July 2016, the law has provided for the right to mortgage parking spaces.

General provisions

The main provisions of the mortgage law establish the definition of a mortgage, the basis for its occurrence, a description of the requirements for collateral and the property that can be pledged.

The pledge must be secured by an agreement in which there are two parties: the pledgor (owner of the object) and the pledgee (creditor). Moreover, the owner may not have anything to do with the loan at all, but only provide it with his property.

The mortgage itself is established not only under the loan agreement. It could be:

• loan agreement,
• lease contract,
• work agreement,
• obligation based on a purchase and sale agreement, etc.

That is, any obligations, if they are not subject to a security procedure defined by another law, may be the subject of a mortgage.

The contract establishes a complete list of obligations that are covered by the pledge. If something goes against the agreements, the pledgee also has the right to receive compensation for losses, interest for the unlawful use of his funds, as well as legal costs and expenses for the sale of the pledged property, unless otherwise specified in the agreement. This is why it is so important to draft this document correctly.

The following property can be provided as collateral:

• land plots, but not all (exceptions are described in Article 63 of the law);
• property used for business activities;
• residential buildings (including parts consisting of isolated rooms);
• dachas, garden houses, bathhouses, garages and other consumer buildings;
• vessels (air, sea, river) and even space objects;
• parking space.

The basic principle that applies to collateral is indivisibility. That is, part of the property that, after division in kind, cannot be used for its intended purpose, is not accepted as collateral. Simply put, you cannot pawn just the engines of an airplane, or just the roof of a house.

Another important point is that a residential building on a land plot can only be accepted as collateral along with the land. If the plot is leased, then the right to lease is pledged. Moreover, if the contract with the landlord is valid for more than 5 years, the owner’s permission will not even be required.

Mortgage agreement

The general rules for concluding all civil contracts in Russia are enshrined in the Civil Code. The Mortgage Law introduces additional requirements that must be met.

The following information must be included in the contract:

• subject of mortgage and its valuation;
• essence, scope and deadline for fulfillment of obligations.

The subject of the pledge must be described in detail so that it can be accurately identified. The contract records the name of the object, description and location. In this case, the same rules apply to leased property; in addition, the lease period is indicated.

If necessary, the parties can include in the contract a procedure for the sale of collateral in the event of debt collection in court or describe settlement options in the pre-trial period.

When it comes to a mortgage loan agreement with an individual who purchases real estate that is not intended for business activities, the rules described in the Law “On Consumer Credit” apply to it. That is, the following conditions must be met:

1. The contract indicates the full cost of the loan, and it must be on the first page.
2. The lender is prohibited from charging the borrower a fee for actions that are imposed on him by law, and which he does in his own interests (all kinds of commissions for issuing a loan and other payments not related to the mortgage).
3. The conditions and procedure for issuing a loan must be publicly available for review (including on the Internet).
4. The borrower must be given a payment schedule.

Mortgage

A mortgage is a registered security that secures the right of claim of the mortgagee to the pledgor for the fulfillment of obligations and the right to pledge property. The law does not require that it be present in order to conclude a mortgage agreement. It may not exist.

The document is drawn up either by the mortgagor or, if the property belongs to a third party, by both of them.

The law clearly describes the list of information that must be reflected in the mortgage, as well as the obligation to register the paper with a government agency (for example, Rosreestr). If at least one of the points listed below is not met, the mortgage cannot be called such:

1. The title of the document must contain the word “Mortgage”.
2. For individuals - the name of the mortgagor, details of the identity document. For legal entities - name of the organization and location.
3. For the mortgagee, the same details as in clause 2.
4. The same details of the debtor, if he is not the mortgagor.
5. The date and place of conclusion of the agreement, as well as the grounds for the occurrence of obligations (for example, the number of the loan agreement).
6. The amount of obligations and interest, as well as the deadline for their fulfillment.
7. Name, description and location of the collateral.
8. Confirmed appraised value of the property.
9. A note on state registration of the mortgage.
10. Indication of the presence/absence of encumbrance of property with the rights of third parties.
11. Signature of the mortgagor and the debtor (if they are not the same person).
12. Specifying the date on which the mortgage is transferred to the lender.

The mortgage may be assigned to a third party. Then the claims of the new mortgagee will be based only on the information reflected in the paper.

A lost mortgage can be restored by making a duplicate, about which a corresponding mark is made on it.

When the obligations to the creditor are repaid, the mortgage is returned to the mortgagor, who then removes the encumbrance from the property with a government agency.

Mortgage registration

The mortgage must be registered with Rosreestr by force of law. In addition to the Law “On Mortgages”, this process is regulated by Law No. 218-FZ “On State Registration of Real Estate”.

State registration formally consists of recording a transaction in the Unified State Register of Real Estate.

The basis for registering a transaction is a joint application of the pledgor and the pledgee, or on the basis of an application from a notary who certified the agreement.

Registration of a mortgage by force of law is carried out with the simultaneous registration of the property rights of the person on whose rights the encumbrance is imposed. If available, the mortgage is registered.

Security of mortgaged property

The fundamental point is that the pledge of property does not give the creditor the opportunity to limit the right of the mortgagor to use this property for its intended purpose. He also has the right to benefit from the collateral, but the creditor cannot claim this income.

At the same time, the mortgagor is obliged to maintain the property in good condition and, if necessary, carry out repairs at his own expense, unless otherwise specified in the agreement.

Disputes often arise regarding the legality of the lender's requirement to insure the collateral against damage, damage or loss. The law states that such insurance may be provided for in the terms of the loan agreement. As a rule, the property is insured at the expense of the mortgagor.

In addition, the owner is obliged to take all available measures to preserve the property safe and sound and inform the pledge holder if there is a real threat of loss of the pledge.

Subsequent mortgage

A subsequent mortgage is a re-mortgage of property that has already been mortgaged. This may be a pledge to the same creditor (for other obligations), or to others.

It is important to comply with the terms of the original mortgage agreement. If it contains an express prohibition on a subsequent mortgage (and most residential mortgage agreements do), then such a transaction will be invalid regardless of whether the potential mortgagee knew about it or not.

There are also cases when the agreement specifies the requirements for obtaining a subsequent mortgage. In this case, a new contract must be concluded in compliance with these conditions.

Otherwise, the subsequent mortgage differs little from the current one. Particular attention should be paid only to the collection procedure. Here you should be guided by the rule of priority rights of claim, in accordance with which obligations are repaid one by one, starting with the first creditor. So the last creditor may not have enough money from the sale of property.

Assignment

The mortgagee has the right, at its discretion, to transfer the right to demand fulfillment of obligations under the mortgage to any third party. For example, if a bank wants to assign a mortgage to a third-party organization, it does not necessarily have to have a license to carry out mortgage lending.

In this case, the person to whom the right under the mortgage has been transferred also receives rights under the obligation secured by the mortgage. That is, this person takes the place of the original creditor.

The transfer of the mortgage is accomplished by concluding an agreement in simple written form. An appropriate entry about the new pledgee must be made on the security.

Interestingly, the law directly prohibits making notes on the mortgage prohibiting its transfer to third parties. Such a record is a priori insignificant.

Collection

If the debtor repays his obligations untimely and not in full, thereby violating the terms of the concluded agreement, the creditor has the right to begin forced collection of the debt.

There are two ways things can develop:

• trial;
• extrajudicial recovery.

If the mortgage agreement does not provide for the possibility of out-of-court settlement of debt (introduced by Article 55 of the law) by collecting the pledged property, such recovery is possible only by court decision.

There are two cases in which out-of-court recovery is not possible:

1. The period during which the debt is not repaid (overdue) does not exceed 3 months.
2. The outstanding balance is less than 5% of the debt amount.

In practice, debt collection by banks through the sale of pledged property occurs only in extreme cases, when other methods do not bring the desired result. However, we should not forget that the law in such cases, as a rule, is on the side of the creditor, since the debtor violates the concluded mortgage agreement. Therefore, if it comes to extreme measures, it is possible to sell the pledged property to pay off the debt.

Sale of property

Debtors' property is sold by putting it up for public sale in the form of an auction. Its organization and conduct are not regulated under this law. Procedural legislation and the Civil Code are responsible for this.

In general terms, trading is carried out as follows. No earlier than 30, but no later than 10 days before the auction, an advertisement is placed in the official newspaper with information about when, where and what will be put up for auction.

Those wishing to participate must make a deposit in an amount not exceeding 5% of the initial sale price of the property. The winner is the one who offered the highest price. For the rest, the deposit is returned immediately.

On the day of the auction, a protocol is signed with the winner. The decision is valid for 5 days, during which the buyer pays the balance of the cost of the property, after which, again within 5 days, a purchase and sale agreement is concluded with him.

The extrajudicial sale of property follows a similar pattern, with the only difference being that the auction is organized by an authorized person on behalf of the mortgagee. The proceeds from the sale are distributed among all mortgagees, and the remainder is returned to the mortgagor.

The law also states that the creditor can keep the property if this is mentioned in the contract. The debtor may at any time, before the auction is declared closed, stop collection by paying off the debt.

The auction may be declared invalid if only one buyer showed up, the initial amount was not increased, or the winner did not pay for the property. By the way, the Civil Code provides for liability for the latter, which is expressed in compensation for losses.

Features of a land mortgage

Mortgage of land plots is possible if the turnover of such objects is not limited by law or its size exceeds the minimum value established by regulations for plots of this type and purpose.

Municipally owned land plots may be provided as collateral. But there are conditions:

• the site must be allocated for individual housing construction as part of social programs;
• the mortgage must be related to obtaining a loan for the development of this site;
• the decision on the possibility of bail is made by the municipal authority.

A land plot acquired using loan funds is pledged from the moment ownership is registered. If the owner wants to construct any buildings or structures on the land, he does not need to ask the mortgagee’s permission. Only if this does not contradict the agreement, these buildings will also become the subject of collateral. This is exactly the moment when the principle of indivisibility works, that is, buildings cannot exist separately from the site, accordingly, they are also included in the mortgage.

Let's consider another case. For example, citizen X owns a plot of land, acquired with personal funds and without encumbrances. One day he decided to build a residential building on this site using a mortgage loan. The bank issued the money and from that moment took the plot as collateral. And then, after building the house and registering the rights to it, he will also take the house as collateral. The same principle of indivisibility. Only in this case, the lender initially took the land as collateral, since the housing has not yet been built, and the loan must be secured with something.

Foreclosure of land also occurs through open auctions. An important feature is the sale of agricultural land. Until the harvest is harvested and sold, these lands cannot be foreclosed on.

Mortgage for non-residential premises

Mortgage of non-residential premises has a number of features that are described in the relevant section of the law.

Thus, an enterprise as a single property complex is transferred to a mortgage with all the property located on the territory, including a land plot.

A separate non-residential premises is pledged in its entirety, along with the land plot.

At the same time, the pledgee cannot in any way interfere with or limit the mortgagor’s right to use the property. The only exceptions are transactions involving the alienation of real estate and its pledge.

An enterprise can be pledged only if the amount of debt obligations is at least half of the estimated value of the property. The period for submitting claims for the collection of collateral is at least one year from the date of conclusion of the contract.

Let's say enterprise N is mortgaged to bank Y under a loan agreement for a period of 9 months. If the company does not repay the debt, the bank still cannot begin the collection procedure earlier than 12 months from the date of signing the document.

By the way, it is possible to collect a mortgage debt from a company only by a court decision.

Mortgage of residential houses and apartments

When transferring them to a mortgage, special requirements are also imposed on residential buildings and apartments, since they may be the place of residence not only of the mortgagor.

It’s worth noting right away that mortgages on municipally owned residential premises are not allowed. The remaining objects have a number of features:

1. When alienating property in which minor children are registered, permission from the guardianship authorities is required.
2. When constructing a residential building, the mortgage can be secured by materials and equipment, but after construction, the finished house is pledged as collateral.
3. According to Article 77 of the law, residential premises purchased with credit money are pledged from the moment of registration of ownership rights.
4. With a “Military Mortgage,” the housing is pledged to the lender and the government agency that makes payments to repay the loan.

By the way, the Federation Council recently adopted amendments to the law “On the Savings Mortgage System”, according to which money is accrued for the “Military Mortgage”. More categories of military personnel are now eligible to have their account restored upon re-enlistment.

The most important point in this section is the clause on foreclosure of housing. This fact is grounds for eviction of tenants. It is carried out in accordance with legal requirements. This point is described in detail in Art. 78.

As you can see, this federal law gives a fairly clear picture of mortgages. This is an effective tool that regulates the mortgage transaction market in Russia. What is important is that this is a living document that, although not always with lightning speed, reacts to changes in the current situation and allows for the development of housing construction in the country.

Whatever we think about mortgages, getting a mortgage is only becoming easier every year. Much of the credit for this goes to mortgage legislation. you can find out further.

If you need qualified assistance from a mortgage lawyer, protecting your interests before the bank or your significant other during a divorce, we recommend that you sign up for a free consultation with our lawyer. He will provide professional assistance and suggest an effective way out of your situation.

Do you still have questions about this topic? We are waiting for them below. Please rate the post and hit the social media buttons.

Federal Law 102 On Mortgage and Pledge of Real Estate was adopted in 1998. It discusses all the features of taking out a loan of this kind, its repayment, regulation of controversial issues, transfer of real estate from collateral to ownership and other important nuances.

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Regulatory issues 102-FZ

Buying real estate presents a certain difficulty associated with large sums: not every family can afford to immediately pay several million rubles, and therefore they have to apply for a loan from banks.

A mortgage is a loan (the issuance of money to a citizen) when the purchased property is pledged as collateral.

In other words, the apartment that the family purchases is the property of the bank until the borrowed amount is paid.

Good to know: in fact, a mortgage is the surrender of an object as collateral for obtaining a loan.

Mortgages are regulated by several laws:

1. Chapter 42 of the Civil Code of the Russian Federation (Civil Code): defines the relationship between the lender and the borrower when taking out a loan.
2. Federal Law No. 102 “On Mortgage (Pledge of Real Estate)”: it relates directly to mortgage lending.
3. Federal Law No. 122 on the need for state registration of rights to real estate.

General provisions of the Mortgage Law

The Federal Law on Mortgage is FZ-102 as amended, which consists of 14 chapters.

It regulates all the basic provisions for obtaining and paying off a mortgage:

1. General provisions: grounds for occurrence, obligations of the parties, what property can become collateral.
2. Agreement: rules of compilation, content, its registration, encumbrance.
3. Mortgage: its content, drafting, fulfillment of the rights and obligations specified in it.
4. State registration of documents: procedure, fee amount, cancellation of entry.
5. Security of the apartment: It is important for the bank that the property does not lose value, that is, when it is sold, the entire amount can be raised. This applies to this chapter.
6. Rights to real estate and their transfer to other persons: We are talking about the alienation of an apartment and the consequences of violation.
7. Subsequent mortgage: its concept, features and registration.
8. Assignment of rights and transfer of invoice.
9. Foreclosure of mortgaged property(confiscation due to debts): is this possible, how does it happen.
10. Sale of confiscated real estate: all options for sale or transfer.
11. Chapters 11-13 refer to mortgages of special objects not mentioned earlier.

Take into account: The chapters talk about private and apartment buildings, apartments in a building under construction, land plots, and non-residential premises.

12. Chapter 14 is the final chapter.

Requirements for the contract

The document is usually drawn up by the bank's lawyers, but it is worth checking.

The following points must be noted in the contract:

1. Subject of mortgage: apartment, room, house, land, premises. It is necessary to accurately indicate the address of the property, its cadastral number, technical characteristics (area, floor, number of premises) and features. The collateral must be accurately identified and described so that it can be easily identified.

Lawyer's Note: It is impossible to simply write “an apartment purchased by a citizen” - such an agreement will not be valid, since the judge, if necessary, will not be able to understand what is at stake.

2. Property value: we are talking about the estimated price - the price at which the apartment can be sold. It must be agreed upon by the parties.
3. All conditions for issuing a loan: size, terms, payment procedure, details of the parties. On the recipient side, they usually indicate a person who is ready to take on repayment obligations if something happens to the main payer.
4. Ownership of the property: If the property is collateral, this is indicated.

If at least one point is not agreed upon, the contract will not be concluded.

Registration of the contract according to the law

The mortgage agreement must be registered at the location of the property. Only after this does it come into force.

It is not necessary to notarize the document.

It is necessary to submit to Rosreestr:

• statement from both sides;
• the mortgage agreement and the documents that are mentioned in it, for example, the mortgage note;
• loan agreement or other document confirming receipt of money;
• receipt of payment of state duty;
• other documents required in individual cases.

Rosreestr is obliged to register the transaction within 15 days from the date of submission of documents: this will be confirmed by an entry in the Unified State Register.

A mark will also be placed on the mortgage agreement itself: it indicates the date, number, full name of the authority and its address.

After repaying the loan, you will need to contact Rosreestr again and remove the encumbrance. If the contract is terminated for other reasons, the entry will need to be canceled.

Removal of encumbrances

Encumbrance is a status of real estate in which a citizen does not have the right to enjoy all property rights.

Good to know: Until the mortgage is repaid, the owner of the apartment is the bank: the family can live in it, repair, equip it, but have no right to sell, exchange or carry out large-scale renovation work.

The ban on major renovation work is associated with a possible decrease in the value of the apartment - the bank cannot allow this.

Only after fulfilling obligations to the creditor, the family receives all rights, and the encumbrance is removed from the apartment.

1. It happens like this:
2. A citizen writes an application to the bank with a request to provide him with all the documents: mortgage, statement of debt repayment, documents for the apartment.
3. With them and an application to remove the encumbrance, he goes to Rosreestr.

After verification, Rosreestr issues a certificate of ownership, and the status of the property changes. Note:

Despite the fact that most banks draw up identical agreements, the clauses of which are based on current legislation, it is recommended to study the laws specified in the article. This will help you find an error or inaccuracy in the document and avoid serious problems in the future.

Watch the video in which a specialist explains the features of registering apartments under the mortgage law: