Under the agreement of equity participation, on the one hand, there are equity holders - citizens and legal entities, on the other - the developer. The contract is concluded with the aim of attracting funds for the shared construction of an apartment building and (or) other real estate object.
Instructions
Step 1
Equity participation agreement is the most reliable and legally protected agreement. Like any agreement, it must contain key sections that characterize and regulate the relationship that has arisen between the shareholder and the developer. The object of shared construction can be residential and non-residential premises, with the exception of a production facility.
Step 2
The following sections must follow each other in the contract:
- place and date of his conclusion;
- the name of the contract;
- the full name of the parties (for individuals - full name; for legal entities, the official and the document on the basis of which the organization acts);
- the subject of the contract;
- financing procedure;
- rights and obligations of the parties;
- responsibility of the parties;
- force majeure circumstances;
- ensuring the fulfillment of obligations;
- the term of the contract;
- details of the parties.
Step 3
In addition, the following mandatory conditions must be specified in the equity participation agreement:
- an object of shared construction has been registered;
- the deadline has been set for the developer to transfer the shared construction object to their participants (equity holders);
- the price, the procedure and the term of payment have been determined;
- the warranty period for the shared construction object is indicated (as a rule, at least 5 years).
The contract is considered not concluded if these conditions are not spelled out in it.
Step 4
The equity participation agreement is subject to mandatory registration with the registration service, only after that it is considered concluded. State registration is a kind of guarantee that the apartment is sold only to the shareholder, i.e. excludes the possibility of selling the same apartment several times.
