We often offer you a variety of premises for rent and ownership, and all of them are awarded at electronic auctions. Today we would like to talk in more detail about the technology for conducting such auctions and about the platforms on which they take place.
There are quite a few electronic trading platforms in Russia now. These are both commercial sites and government ones. We will focus on the state ones and the most significant ones. These are exactly where the Moscow City Property Department most often conducts electronic auctions. The lots we cover are played there.
How does the bidding procedure work?
You need to register on the electronic platform, then submit an application for participation (please note that in our proposals we always indicate the closing date for accepting applications for participation). The last stage is the actual conduct of the electronic auction, followed by receipt of a protocol on the results.
At the registration stage, the key points will be:
- Receipt of an electronic digital signature by the participant. The receipt procedure is controlled by regulations, which will be provided on any of the above trading platforms.
- Accreditation - an application for accreditation is filled out and scanned electronic copies of the necessary documents are submitted.
The trading process is controlled by the site operator.
And now, let’s directly list those electronic platforms on which open auctions in electronic form are most often held for the purchase/sale and rental of real estate from the property treasury of the city of Moscow:
All sites offer approximately the same range of services and high-quality support, technical support and training.
Low and constant rental rates, the possibility of purchasing real estate, preferential programs - these are just the key advantages of Moscow. The number of tenants in the city is growing every year: for example, 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, all programs will continue to operate for tenants that allow them to significantly save on rent and achieve the purchase of city real estate. Don't miss the chance to get a room with a rental rate significantly lower than the market rate! Our article with a step-by-step analysis of the rental process and expert comments will help you understand the peculiarities of bidding.
Step one: choosing a property
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 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 size of the deposit. Download the lot documentation and read the lease agreement. Note such important factors as the possibility of subletting real estate, assigning claims, early termination of the contract, etc.
Some entrepreneurs think that they are buying a “pig in a poke” by signing an agreement with DGI. As a lawyer who has worked in the real estate market for many years, I hasten to destroy this stereotype. On the contrary, all documentation on the object is presented in the public domain, starting from an extract from the Unified State Register of Real Estate and ending with a technical passport from the BTI. Objects are exhibited with a large number of photographs. Moreover: auction participants can agree on a personal inspection of the premises: for this you need to submit an application on the website no less than two days before the start of the auction https://investmoscow.ru/tenders.
Step two: register on the bidding site and submit an application
Entrepreneurs who participate in bidding for the first time must go through the registration procedure on the site. To do this, you will need to undergo 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 only need to submit an application to participate in the auction. Moreover, you will additionally need:
- Provide documents - an extract from the Unified State Register of Legal Entities or Unified State Register of Individual Entrepreneurs, copies of constituent documents and an extract from the authorized body that it approves the transaction. Documents confirming the authority of the person taking part in the auction are also required.
- Make a deposit - its amount is indicated in the bidding documentation. A payment document with a note from the bank regarding payment is attached to the application. The receipt must indicate the lot number, the date of the auction, the address and total area of the premises, and the amount of the deposit.
Important: why can an application to participate in a tender be rejected?
There are very few reasons why entrepreneurs are not allowed to auction: failure to pay a deposit, an incomplete set of documents, or violation of the requirements for drawing up auction documentation. Companies that are at the stage of bankruptcy or liquidation will also be excluded from participating in the auction.
Step three: participation in the auction
At the appointed time, you must take part in the auction on the site’s website. The minimum price is the one indicated in the documentation for the lot. The auction step is also specified in the documents - as a rule, it is 0.2% of the lot amount. If there is no bid within an hour, then the winner of the auction is the participant who offered the last amount. Once the tender protocols are posted on the website, they are recognized as valid.
Important: What if you are the only bidder in the auction?
In this case, bidding is simply not held: the city will offer to conclude a direct lease agreement on the terms published in the lot documentation.
Yakushev Anton, lawyer at RFI consult
Before participating in an auction, it is necessary to assess the risks. Thus, the deposit amount 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 lease agreement for non-residential premises. At the same time, he must comply with all documentation and deposit requirements. The agreement cannot be changed unilaterally by either party. If the participant who takes first place avoids signing the contract, then instead of him DGI can offer rent to entrepreneurs who offered the second and third from the end amount.
Yakushev Anton, lawyer at RFI consult
Despite the simplicity of the procedure for leasing non-residential premises from the Moscow Property Department, there are quite a lot of pitfalls that entrepreneurs are not aware of. For example, it is difficult to objectively assess the value of premises for a business and understand to what extent it makes sense to raise rates. Problems may arise when collecting documents, registering on the auction site, or participating in auctions. Finally, it is very important to have an attorney review the lease agreement and highlight all the pros and cons of the proposal.
Our clients are always satisfied with cooperation with RFI consult, since we provide turnkey services - from selecting premises according to the customer’s parameters and collecting documents for participation in preferential programs of the State Property Inspectorate, to signing an agreement with the Moscow Property Department. Customers receive real estate on a long-term lease basis at the best rate.
Are you looking for information about auctions for the rental of municipal property in Moscow because it is inexpensive and reliable? It is possible that for one reason or another you need to sign a lease agreement for residential or non-residential premises owned by city authorities or even the state. In this case, municipal rental of premises in Moscow is what will allow you to rent a suitable object.
At the same time, GlavUpDK under the Russian Foreign Ministry offers you information about auctions for the lease of federal property - i.e. state-owned The secret is that state-owned non-residential real estate practically does not fall into the databases of real estate agencies. For this reason, many simply do not know that the opportunity to rent an object at a lower price exists. It is also necessary to distinguish between the lease of federal real estate and the lease of real estate obtained during an auction for the lease of municipal premises.
The GlavUpDK company under the Russian Ministry of Foreign Affairs on an ongoing basis organizes and conducts auctions for the lease of federal real estate transferred to it for management under the right of economic management. If you are looking for office space, be sure to visit our website, where you can familiarize yourself with the rental offers and become a participant in the auction - the benefits of signing a lease agreement are quite obvious, because you will be able to conclude an absolutely legal lease agreement that will protect your interests as a tenant.
Auction rules:
The auction is held in accordance with current legislation, which obliges federal state unitary enterprises to put up all premises offered for rent at auction. If only one application is submitted, the auction is declared invalid, and an agreement is signed with the potential tenant who submitted the only application at the minimum (starting) rental rate. If several participants bid for one premises, an auction is held, during which bids may increase significantly during the bidding.
In order to become a participant in a real estate rental auction, you must fill out an application where your details will be indicated, as well as attach the constituent documents and a document confirming payment of the deposit. Before the start of the auction, the client has the right to refuse to participate and withdraw the submitted application.
If you become the winner of the auction, then you must enter into a rental agreement within 20 days from the date of the auction. In this case, the deposit will be returned to the auction winner or accepted towards the fulfillment of obligations under this agreement.
But if the contract for one reason or another is not signed by the winner within the specified time frame, then the deposit will not be returned to him.
If you have any questions about the rules of the auction, you can contact our consultants by phone or by email indicated on the website.
