Agreement on redistribution of shares in common shared ownership

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It is necessary to redistribute shares in an apartment only if all owners interested in this issue give their consent and are ready to sign the appropriate agreement. In all cases, such a procedure is purely voluntary, in which one person agrees to give up part of his share in favor of another for some reason.

Example : There is an apartment that is owned by 2 people (each has 1/2 share). One of the residents, at his own expense, carried out major repairs in the entire housing (and not just in his share). As a thank you, the second owner offers to redistribute the shares so that the first becomes the owner of 3/4 of the apartment, and the second has only 1/4 of the apartment. Of course, this can only be done if the relationship between the owners is very good.

Design rules

Expert opinion

Stanislav Evseev

Lawyer. Experience 12 years. Specialization: civil, family, inheritance law.

When concluding an agreement, like any other contract, the parties must first study the rules of execution. Otherwise, the document may be declared invalid or challenged in court.

The subject of an agreement on the redistribution of shares in common shared ownership can be both a land plot and a residential building. The parties can draw up a general document about two pieces of property or an individual form for each subject of the transaction.

Basic Rules:

1. Voluntariness. Each of the co-owners must be notified of the upcoming procedure and have no objections. We are talking exclusively about co-owners who are going to enter into an agreement.
2. Notification of co-owners. If there are several co-owners, then you need to notify them.
3. Written form. A plot of land and a private house are objects, transactions with which are formalized exclusively in writing and are subject to state registration.
4. Notarization. A transaction with real estate shares, including the redistribution of shares, must be certified by a notary.
5. No encumbrance. The law prohibits any transactions with shares that are encumbered or under arrest. Therefore, before completing a transaction, it is advisable to obtain data from the Unified State Register of Real Estate about the absence of encumbrances.

Important! If the transaction is carried out in relation to an allotment that is part of the SNT, then notarization is not required. First, it is necessary to hold a general meeting of owners and draw up minutes of the meeting. The result is certified by the signature of the chairman of the SNT.

The agreement can be of the following types:

• paid (additional payment is provided for increasing the share);
• gratuitous (the share increases in the order of donation).

Information about the nature of the agreement must be indicated in the text of the document. Otherwise, the agreement is considered invalid.

Example. Raisa and Fedor divorced.
The minor son remained to live with his mother. The family owned a private house. The object was in shared ownership. 1/2 share belonged to Fedor, ¼ share belonged to Raisa and son. Fedor was unable to pay alimony. Therefore, he entered into an agreement on the redistribution of shares, in which he transferred ¼ share of the house to his son.

Options

The law provides for the following options for the redistribution of shares in the right of common shared ownership of an apartment:

1. Purchase and sale.
2. Donation of a share.
3. Exchange of shares using other property.
4. Compulsory redemption by court decision.
5. Agreement on redistribution of shares.

Example. Citizen P. and her 2 daughters are the owners of the apartment. Each of them has the right to 1/3 share. As a result of the move, it became necessary to sell the apartment. Guardianship gives permission to deal with the property of minors only if they are provided with alternative housing. Citizen P. and her mother are also the owners of another apartment. 1/3 share in the first and 2/3 in the second. According to the agreement on the redistribution of shares, the mother and grandmother allocate 1/5 of the share to their granddaughters, 1/5 of the share remains with the mother and 2/3 of the share with the grandmother.

Agreement requirements

Before executing an agreement, the parties need to verify each other’s legal capacity. In addition, it is important to remember that it is prohibited to reduce the share owned by an incapacitated or minor owner. Even if their interests are represented by legal representatives.

The law does not specify the exact form for the agreement. However, it is subject to the general requirements for contracts.

The document must include the following items:

• Name;
• place of registration;
• date of conclusion;
• details of the parties, including gender, passport details and address;
• information about the land plot (cadastral number, address, total area, data of all owners);
• details of title documents;
• details of the extract from the Unified State Register;
• reasons for changes in the size of shares;
• compensation/free transfer of rights;
• new share options;
• a note indicating that there is no encumbrance on the rights of one of the share owners;
• rights and obligations of the parties;
• number of copies;
• signatures of co-owners.

Important! The absence in the agreement of data on the possibility of challenging the contract in court is not a prohibition on going to court. Either party has the right to protect its property interests in the event of a violation of rights, regardless of the terms of the contract.

Preliminary actions

Before entering into an agreement, you must ensure that the following conditions are fully complied with.

• There are no disputes or conflict situations between shareholders regarding how their shares will be redistributed, that is, this procedure takes place on the basis of their peaceful agreement.
• The shareholders agree to the procedure. So, if a private house is owned by parents and two children, then consent must be obtained from each shareholder.

Documentation

The execution of the agreement can be entrusted to a notary. However, the parties must first obtain legal advice about the consequences of the decision. The person whose share is being reduced must be aware that he is transferring part of the property to a co-owner.

Also, the parties can independently prepare the project, and the notary will only formalize it in the proper form. Starting from 2021, the obligation to transfer the agreement for state registration to Rosreestr rests with the notary (if the transaction was subject to notarization).

To formalize the agreement, the parties must provide the following documentation:

• civil passports of the parties;
• birth certificate of the minor owner;
• extract from the Unified State Register of Real Estate;
• information about the absence of encumbrances;
• title documents;
• power of attorney and passport of the representative (if available);
• home appraisal report;
• certificate of cadastral value of the land plot;
• consent of the spouses (if the object was purchased during marriage).

Expenses

The final cost of registering the redistribution of shares in an apartment depends on the number of stages required. Prices for services may vary throughout the country, as well as depending on specific companies.

Estimated cost of redistribution of shares

How to compose it correctly?

Before drawing up an agreement, you need to resolve possible disputes between the co-owners of the house and land. If contradictions cannot be avoided, there can be no talk of any agreement - the issue is addressed to the court.

So, the first important rule is the absence of disputes between shareholders regarding the redistribution of shares in common law (voluntariness).

The second rule is the consent of all shareholders who have an interest in the common shared ownership (for example, if the house is divided between a mother, father, son and daughter, the consent of all four shareholders will be required, without exception).

The third rule is to draw up an agreement according to the sample, indicating the size of the old and new shares. Registrars must see exactly how the co-owners want to redistribute shares: reduce, increase, equalize, etc.

Finally, the fourth rule is to indicate the nature of the redistribution of shares:

• compensated (for example, a contract for the sale and purchase of a share of a land plot, exchange);
• gratuitous (for example, a gift in favor of one of the family members).

An agreement to change the size of shares in common law is drawn up in accordance with Art. 434 of the Civil Code of the Russian Federation, as well as with the rules of document flow. Below we will look at the structure and content of the agreement.

Do I need to get it certified by a notary?

Common shared ownership takes into account many interests, from shareholders to creditors. That is why, starting from 2021, transactions with shares are subject to notarization.

If the house and land are part of the property of the cooperative, a notary is not needed. The seal and signature of the chairman, as well as the finished minutes of the meeting of all participants of the SNT and/or cooperative, are sufficient. However, the parties can contact a lawyer and check the legal purity of the transaction.

Form and content

The agreement is drawn up in writing by analogy with the contract of the parties. Co-owners make changes to the existing type of right, indicate new shares, affix signatures and register the agreement with the Rosreestr body.

The content includes the following provisions:

• name of the agreement;
• the city where the agreement is signed;
• date and year of the transaction between co-owners;
• Full names of the parties, their passport details, information about the size of shares;
• information about a residential building, apartment or land plot;
• information on state registration of rights in Rosreestr;
• the reason for the modification of shares in the common right of ownership;
• new sizes of shares - to whom and how much goes, on what basis and under what conditions (compensation/gratuitousness);
• information about the absence of encumbrances, arrests and prohibitions on the alienation of shares in the house/land;
• data on registration of changes;
• rights and obligations of the parties - including the opportunity to challenge the agreement in court (see “Shared ownership: rights and obligations of owners”);
• number of copies of the agreement;
• personal signatures of the parties.

Co-owners have the right to include other clauses if required by their agreement. However, the general structure should not be violated - it affects the legality of the agreement.

Next, you can familiarize yourself with sample agreements and download them to your computer (phone).

Lawyer for division of inheritance in Yekaterinburg

To achieve a positive decision, you must do the following:

• contact our lawyer at the Law Office “Katsailidi and Partners”, who will advise on such issues
• enter into an agreement with a lawyer who will represent your interests at court hearings
• collect all documents that confirm your rights to part of the property of the deceased

In general, a competent lawyer can help determine the procedure for dividing inherited property outside of court. Yes, it also happens when the parties make concessions to each other, agree among themselves and make decisions regarding the fate of the inherited property. They often do this after turning to lawyers and receiving competent advice, from which they begin to roughly understand who may get what and for what reason.

Redistribution of shares

• The parties pay the costs of drawing up and executing the contract equally.
• The agreement is drawn up in triplicate. A copy of this agreement is kept in the files of the notary's office, and one copy is issued to the parties to the agreement.

DETAILS AND SIGNATURES OF THE PARTIES Side 1

• Registration address:
• Mailing address:
• Phone fax:
• Passport series, number:
• Issued by:
• When issued:
• Signature:

Side 2

• Registration address:
• Mailing address:
• Phone fax:
• Passport series, number:
• Issued by:
• When issued:
• Signature:

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Redistribution of shares on a land plot

The procedure is regulated by Article 11 of the Land Code of the Russian Federation. If there is a house on the plot, this means that the scope of the right to the building extends proportionally to. In other cases, redistribution of shares is permissible:

• drawing up an agreement upon initial registration;
• purchases or donations;
• court decision.

To do this, its area requires compliance with the regulations established by the regional administration.
That is, each potentially allocated plot should not be less than the minimum established by the administration. After, the persons indicated in the testamentary disposition or having priority by law - according to the degree of relationship (see), have the right to refuse to accept the inheritance. Unaddressed refusal or refusal in favor of one of the heirs is allowed.

If the person who renounced did not indicate a successor to whom his part of the real estate goes, his amount of the inheritance mass is distributed among the remaining participants. The heirs jointly accept the freed volume of rights by increasing their shares.

Such a change in the inheritance mass changes in the process of conducting the inheritance case by a notary. After the expiration of the corresponding period, this increase in the scope of rights will be taken into account in the inheritance certificate.

The same happens if or died without entering into inheritance rights. Their parts are added to the property of the remaining successors.

The increment procedure is regulated by Article 1161 of the Civil Code of the Russian Federation.

When a person specified in the will or one (several) applicants refuse to participate in favor of an established person from among the participants, the volume of the released inheritance is increased to the share of the specified successor.