Low and constant rental rates, the possibility of buying out real estate, preferential programs - these are just the key advantages of Moscow. The number of tenants in the city is growing every year: so, compared to 2016, in 2017, 10% more entrepreneurs were able to obtain real estate on favorable terms. In total, almost 6,000 property and land auctions were held last year. In 2018, tenants will continue to operate all programs that allow them to significantly save on rent and seek to buy out urban real estate. Do not miss the chance to get a premise with a rental rate significantly lower than the market one! Our article with a step-by-step analysis of the rental process and expert comments will help you understand the specifics of bidding.
Step one: choosing a property
The objects that are available for rent from DGI can be viewed on the website: https://investmoscow.ru/tenders or https://www.mos.ru/tender/function/zem-imush-torg/edinyy_spisok_torgov/... There are convenient filters here to find non-residential premises in the desired area, the required area, with a specific purpose.
Important: Evaluate not only the premises, but also the conditions of the auction: what are the deadlines for accepting applications for participation, what is the amount of the deposit. Download lot documentation, read the lease agreement. Point out such important factors as the possibility of subletting real estate, assignment of claims, early termination of the contract, etc.
Some entrepreneurs think they are buying a pig in a poke by signing an agreement with DGI. As a lawyer who has been working in the real estate market for many years, I hasten to destroy this stereotype. On the contrary, all the documentation for the object is presented in the public domain, starting from an extract from the USRN and ending with a registration certificate from the BTI. Objects are exhibited with a lot of photographs. Moreover: the auction participants can agree on a personal inspection of the premises: for this you need to submit an application on the website at least two days before the start of the auction. https://investmoscow.ru/tenders.
Step two: registering on the bidding site and submitting an application
Entrepreneurs who participate in the auction for the first time must complete the registration procedure on the site. To do this, you will need to pass accreditation, install certificates and a cryptographic information protection system on your PC. Entrepreneurs will need an electronic signature. We recommend starting the registration procedure at least a week before the deadline for accepting applications for the auction you are interested in.
If the legal entity is already registered, then you just need to submit an application for participation in the auction. Moreover, you will additionally need:
- Provide documents - an extract from the Unified State Register of Legal Entities or USRIP, copies of constituent documents and an extract from the authorized body that it approves the transaction. You also need documents confirming the authority of the person taking part in the auction.
- Make a deposit - its amount is indicated in the documentation for the auction. A payment document with a bank mark on the payment is attached to the application. The receipt must indicate the lot number, the date of the auction, the address and the total area of the premises, the amount of the deposit.
Important: Why might a bid be rejected?
There are very few reasons why entrepreneurs are not allowed to bid: these are non-payment of a deposit, an incomplete set of documents, violation of the requirements for registration of auction documentation. Also, companies that are at the stage of bankruptcy or liquidation will be excluded from participation in the auction.
Step three: participation in the auction
At the appointed time, you must take part in the auction on the site of the site. The minimum price becomes the one that was indicated in the documentation for the lot. The step of the auction is also spelled out in the documents - as a rule, it is 0.2% of the lot amount. If the application is not interrupted within an hour, then the winner of the auction will be the participant who offered the last amount. After posting on the website of the protocol of bidding, they are recognized as valid.
Important: what if you are the only bidder?
In this case, the bidding simply does not take place: the city will offer to conclude a direct lease agreement on the terms published in the lot documentation.
Yakushev Anton, lawyer RFI consult
Before participating in an auction, it is necessary to assess the risks. So, the amount of the deposit is not returned to the entrepreneur if he was the only participant admitted to the auction or made the maximum bid, but refused to sign the protocol or lease agreement.
Step four: conclusion of the contract
Between 10 and 20 days after the end of the auction, the entrepreneur must arrive at the Moscow City Property Department to sign a contract for the lease of non-residential premises. At the same time, he must comply with all documentation requirements and a deposit. The agreement cannot be changed unilaterally by either party. If the participant who won the first place evades signing the contract, then instead of him, DGI can offer rent to entrepreneurs who have offered the second and third from the end the amount.
Yakushev Anton, lawyer RFI consult
Despite the simplicity of the procedure for renting non-residential premises from the Property Department of the city of Moscow, there are many pitfalls that entrepreneurs do not know about. For example, it is difficult to objectively assess the value of a premises for a business and understand to what extent it makes sense to raise rates. Problems may arise when collecting documents, registering on the site for auctions, participating in tenders. Finally, it is very important for a lawyer to analyze the lease and highlight the pros and cons of the proposal.
Our clients are always satisfied with cooperation with RFI consult, since we provide turnkey services - from the selection of premises for the customer's parameters and the collection of documents for participation in the preferential programs of the DGI and ending with the signing of an agreement with the Moscow Property Department. Customers receive real estate on a long-term lease with the best rate.
