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Civil law. Part II. Parties to a real estate sale agreement, their responsibilities (the most important)

Lecture notes, cheat sheets

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18. PARTIES TO THE AGREEMENT FOR THE SALE OF REAL ESTATE AND THEIR OBLIGATIONS

By the parties treaties are seller и customer. Participants in this agreement can be all subjects of civil legal relations: individuals, legal entities, the state (the Russian Federation, its subjects, as well as municipalities).

On the side of the seller, only entities that have either a full real right (ownership right) or a limited real right (the right of economic management or operational management) on real estate can act. The situation of sellers who have real estate on a limited right is complicated by the fact that they cannot decide on their own whether to sell it without obtaining the consent of the owner (this applies to state and municipal enterprises whose property is under the right of economic management), or they can sell it on their own only a part of the property that they own, i.e., that which they bought with the income received and accounted for on a separate balance sheet (this applies to institutions whose property is under the right of operational management) (paragraph 2 of article 295, paragraph 1 article 297, paragraph 2 article 298 of the Civil Code).

The rights of spouses who sell real estate that is in their common joint ownership, that is, acquired by them during marriage, are similarly limited. When selling such property by one of the spouses, the consent, certified by a notary, of the other spouse is required (clause 2 of article 181 of the Civil Code, clause 3 of article 35 of the UK).

In certain cases, the law restricts the rights of joint-stock companies that sell their real estate. So, when a joint-stock company sells real estate worth from 25 to 50% of the total book value of the company’s property, a corresponding decision of the board of directors of this joint-stock company is necessary, and if the real estate value exceeds 50% of the book value, a decision of the general meeting of shareholders is necessary (Article 78 of the Federal Law "On Joint Stock societies").

Seller's Responsibilities:

▪ transfer ownership of real estate to the buyer (this right disappears from the seller from the moment of registration of the transfer of ownership to the buyer; this moment may not coincide with the transfer of the property itself);

▪ transfer the real estate to the buyer under the transfer deed (from the moment this deed is signed, the risk of destruction of the real estate passes to its buyer, unless otherwise provided by the agreement - clause 2 of Article 556 of the Civil Code).

Buyer Responsibilities (Article 551 of the Civil Code):

▪ accept real estate under a transfer deed;

▪ register the transfer of ownership.

In the event of the sale of immovable property of inadequate quality, the buyer does not have the right to demand its replacement.

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