Installment payments for housing purchase from developers will not fall under the law on payment in installments

In the fall of 2024, the share of installment payments when buying real estate has increased several times - up to 30-35%, and in the near future, against the background of the rising cost of credit money may reach 50%, experts told Izvestia.

In their opinion, from a "niche" proposal for one or two years for wealthy Russians interest-free installments from the developer is becoming a mass phenomenon with a low first payment (from 10%) and a term of 8-10 years.

This, experts believe, creates significant risks for buyers. Including because the sale of real estate in installments does not fall under the forthcoming special regulation of this service.

In August this year in the State Duma were introduced two bills that are aimed at regulating the service of installments to protect buyers who choose the form of payment in installments. The drafts are supposed to establish requirements for the contract of the service, free of charge, limitation on the amount of penalties, requirements for informing the consumer, etc.

In this case, the sale of real estate by the developer under the new regulation of the Central Bank will not fall under the new regulation, follows from the response of the press service of the Central Bank in response to the request of "Izvestia".

"The bill will regulate such activity provided that it is carried out through an intermediary, which is one or another installment operator. If the installment is provided from the balance sheet of the developer itself and there is no intermediary in these relations, then this, as now, will be regulated by the law "On Protection of Consumer Rights" - said "Izvestia" in the Central Bank.

Thus, when the developer sells real estate in installments will remain the current regulation, which does not protect consumers sufficiently, experts believe. Lawyers and human rights activists note that under the current legislation developers have a large field for freedom of action.

For example, most contracts contain provisions stipulating that in case of non-payment of subsequent payments, the buyer loses the money already paid. In addition, since the amount of penalties is not regulated in any way, the developer, referring to the article of the Civil Code "On Freedom of Contract", can set the amount of penalties that will exceed the amount of the first payment.

Read the details in the exclusive material "Izvestia":

Parts and property: buyers of housing in installments may lose both housing and money