What risks at acquisition of housing in Share mortgage Cooperative are?
Share mortgage Cooperative (PEAK) are non-profit organization which authorized purpose: “ Providing financial support and the conclusion of the contract of a mortgage (pledge of real estate) for acquisition of real estate.
PEAK takes Money for acquisition of apartments from own share fund consisting only from introductory, member and shares of members PEAK.
Anyone can enter PEAK 55 years (the lower threshold is not defined), the passport of the Russian Federation having at itself, introductory and initial share contributions are not more senior.
the Entrance fee is 5% of an estimated cost of the acquired real estate, but not less than 2000 c.u.
the Initial share - at least 10%. But it is possible to bring only an entrance fee and 300 c.u. as an initial share, and within the accumulative program to save up the required 10%.
As soon as the member PEAK will bring necessary contributions, it gets to the turn consisting of other members of cooperative.
It consists of three levels.
First level: “ Accumulation of a share “.
Second level: “ Selection of real estate “.
Additional level: “ Temporary disclaimer on selection of real estate “.
Transition to another comes from one level at achievement of the maximum rating among members of cooperative.
For achievement of the maximum rating it is necessary to satisfy at the same time a number of conditions, but not all these conditions depend on the member of cooperative:
- introduction of an entrance fee in full;
- accumulation of necessary size of a share;
- lack of violation by the Member of cooperative of obligations for introduction of monthly shares;
- existence of enough money in Share fund of cooperative;
- introduction on the settlement account of cooperative of the sum of expenses on notarial services and on services in registration of the property right to real estate.
But “ The Main defining factor of rating system and duration of payment by installments on payment of shares is usefulness of the shares brought by members of cooperative for implementation by cooperative of the authorized tasks and achievement of the authorized purposes “ this phrase should be understood so: who will bring shares more, will quicker buy that the apartment.
In other words, the term of expectation of the right for selection of real estate can significantly drag on, to reach the maximum rating very not easy. Success is achieved by members who brought 40 - 60% of a share. It is very bad that terms are not determined, during a payenakopleniye of real estate price can significantly grow .
Moreover after the member entered cooperative and got to turn, the PEAK issues the guarantee certificate in which it is said that the PEAK guarantees receiving the right for selection of real estate APPROXIMATELY in such - that term.
And after receiving the right for selection of real estate the member the PEAK is obliged to sign the contract for rendering intermediary services at acquisition of a real estate object with a certain authorized realtor company (RC). In this contract RK undertakes to carry out a legal inspection of the picked-up apartment, to organize signing of the contract of purchase and sale and mutual settlements between the parties. In other words to go on viewings of apartments, the member PEAK will bring and return advance payments / inclinations. The realtor company is not engaged in it.
the Cost of services RK - 2 - 3% of the real estate price.
If the member of cooperative refuses the conclusion of the contract with RK, then procedure of an exit from PEAK is applied to it and to it within 60 working days the share sum comes back. The entrance fee does not come back under no circumstances.
Also in PEAK there is a test program. According to this Member of Cooperative program, having paid introductory and initial share contributions, to mozhetispolzovat the housing which is available in its property for payment of the subsequent shares in the following forms:
- by alienation of test real estate in the secondary market, through the realtor company authorized PEAK, and transfers of the received money on account of a share;
- by the organization of urgent repayment of real estate by the authorized realtor company, and transfer of the received money on account of a share;
- in preliminary coordination about PEAK - by transfer of test real estate to property of cooperative as part of a share.
In other words, RK or PEAK can redeem or offer for sale real estate at the price interesting by it which will probably be lower than market. And to put a difference in a pocket. acquisition of this test housing can impose to Other members of PEAK cooperative
. At inflated prices. And if the member PEAK selects the option, RK, having carried out a legal inspection, for any reasons refuses acquisition of this housing. the Reasons can be found always.
When drudgeries of the member of cooperative come to an end, the apartment is picked up and approved, there comes day of the transaction of purchase and sale.
In date of transmission of money the contract of providing mutual financial support on the terms of a target loan is signed with the member of cooperative. This contract imposes pledge on the acquired apartment (a mortgage by law).
the member PEAK is obliged to transfer Documents of title within 10 days to storage to PEAK before full payment of a share. After the transaction the member the PEAK is obliged to insure risk of total or partial loss of a title of property for 3 years. The cost of an insurance makes 0,6% for every year.
Further monthly payments which are divided into equal parts begin and include monthly share membership dues. The share is the sum of a share divided into loan term. And the membership dues are “ percent “ for use of a loan. From 1 to 5% per annum depending on loan term.
The member of cooperative can dissolve the member contract at any time. But to it only the share sum comes back. The initial contribution and membership dues do not come back. the Share comes back within 60 working days. Term can drag on if in share fund of cooperative there is no money for return of a share. It is possible to make urgent return no more than 15 days in time. But in this case it will be necessary to pay 5% of the returned sum in insurance fund of cooperative.
After full payment of a share to the member PEAK documents of title come back to the acquired apartment, the document confirming payment of a share is issued and pledge can be removed.
Can be to someone acquisition of housing through PEAK will seem favorable, but risks need to be known!
of Good luck to you in the solution of housing problems!