Obligations of the parties that have concluded a contract for the free use of non-residential premises

It is quite common for modern businessmen to conclude an agreement on the gratuitous use of property. The essence of this transaction is that one party gives for use without compensation for compensation to the other party for a period established by the contract, the principal means belonging to it, for example, non-residential premises, without requiring compensation in return. This type of contract is considered to be a loan agreement, and the parties that signed the document, respectively, the lender and loan recipient.

From rental relations, the contract for the uncompensated use of non-residential premises is distinguished by essential conditions, since the document does not specify the cost due to its absence. This type of legal relationship can arise both between legal entities and between individuals. The limitation in this case is that the transfer of the premises to gratuitous use is impossible if the lender is a commercial enterprise, and the borrower is the employee of the firm. According to the current legislation, the transfer of property for free use can be carried out for any period agreed by the parties.

A contract for the uncompensated use of a non-residential premises will not be considered concluded even if the object of the transaction is not identified by this agreement. That is, if the exact location of a non-residential premises is not specified, as defined by civil law, part of the structure used for production or commerce purposes, and its total area is not specified.

The terms of the loan agreement are agreed by the parties and are also specified in the text, and a contract can be concluded both for an established and for a period without specifying an end date, just as the term of the non-residential premises lease contract is established . Often, the concept of leasing and gratuitous use of legal relations substitute, which can not be done in any case, because significant, and therefore the main point in the lease is the payment for the property transferred by the lessor.

In the event that for the period of the contract the transferred property was damaged by the borrower, it is his duty to compensate for the damage done to the lender. The amount of damage is determined as a result of the valuation of the object taking into account the amount of physical depreciation.

In addition to the transfer of non-residential premises to the party, the contract for the uncompensated use of non-residential premises does not remove the owner's right from the transferring party, but the encumbrance is received by the lender. After all, for the duration of such an agreement, the owner can not transfer the right, that is, to sell, donate, and also use this non-residential premises as collateral.

Do not forget that, despite the fact that there is no cost in the loan agreement, the borrower should regularly submit the report to the tax authorities on time, because non-residential premises presuppose any activity that generates profit.

The question that worries many who want to get real estate at their disposal, and where to find the lender, and why is it beneficial to the contract for the uncompensated use of non-residential premises?

Most often, the transferring party in this case is the administration of various municipalities, and the subject of the contract are the premises and buildings of educational and preschool institutions. It is the lack of funds, as well as the fact that the objects of capital construction of schools and kindergartens are on the balance of the city, and this form of the contract is explained.

In addition, many legal entities own non-used capital construction facilities that are not of financial interest.

If you decide to conclude such an agreement, and it does not matter which side you are, before signing it is necessary to get a competent legal advice to protect yourself from unjustified risks in the future.