# How to collect penalty from the builder: step-by-step instruction

The residential building which is not put in time in operation by the builder in the real estate market - not rarity. In this case the buyer has full authority to collect penalty from the seller. Such opportunity, according to the legislation, surely registers in the contract of purchase and sale.

Non-compliance with terms of housing commissioning threatens builders with financial responsibility. Shareholders since recent times have got opportunity to receive compensation for the apartment which is out of time transferred to them under the contract. How to collect penalty?

## What to begin with

In order that to the shareholder to receive penalty fee for delay of transfer of the apartment under the contract of individual share (CIS), first of all it is necessary to send to the builder pre-judicial claim with the requirement about compensation payment. The fact of divergence of terms of transfer of the apartment is surely specified in this letter (real and registered in DDU). The size of the penalty put under the law is in addition fixed.

## How to calculate compensation amount

The following data are necessary for calculation:

• refunding rate of the Central Bank on the date of the actual transfer of the apartment to the shareholder;
• the coefficient applied to this rate. For natural persons - 1/150, for legal - 1/300;
• apartment cost, according to the contract;
• delay duration.

The formula for calculations looks so: the penalty size = 1/150 X refunding rate the X cost of the apartment is X delay duration (in days).

In case input of the house in operation by the builder strongly drags on, then the shareholder has the right to appeal to court, without waiting for the actual transfer of housing. Then instead of duration of delay the rated sum of penalty in one day (same formula) is specified. This sum will be necessary for court to establish the final amount of compensation to the shareholder.

## To what court to submit claim

It makes sense to address in general jurisdiction in cases if the collected sum is so small that does not cover costs of arbitral proceedings. Otherwise - more predicted result can be expected from arbitration court.

It is possible to submit claim as to district and city court, in the place of constant or temporary registration of the claimant. It is possible not to pay attention to arrangement of real estate object concerning which legal proceedings will be open.

## What documents to prepare

Will be necessary for appeal to the court:

• DDU with all annexes to the document (copy);
• the payment documents confirming the fact of transfer of means under the contract (copy);
• pre-judicial claim to the builder;
• the documents confirming availability of additional damage (for example, the lease agreement of other housing).

## Terms of consideration of the case and way of receiving the answer

The action for recovery of penalty of DDU, as a rule, is considered by court within 3-5 months. But most often, one of the parties submits the appeal therefore terms can differ from specified.

It is possible to receive the judgment within one-two weeks after the last meeting. From this date the term when the lawful judgment comes into force is counted. Verdict of the judge it is possible to appeal if is on that against the bases (the size of penalty is strongly underestimated) and to submit the repeated application to the same instance for obtaining the court order. However the fastest way - through bank.

Author: «MirrorInfo» Dream Team