Russians Face Possible Loss of Apartments in Housing Crisis
In the ever-evolving world of real estate, protecting one's property from fraudulent transfers is paramount. In Russia, one of the most effective measures to prevent such incidents is to establish a ban on real estate transactions that necessitates the owner's personal participation for any transaction to be registered [1].
This ban, registered via Rosreestr (the Federal Service for State Registration, Cadastre and Cartography), acts as a shield, preventing any unauthorized sale or transfer of the property without the owner's consent and physical presence. This measure significantly reduces the risk of fraud.
Beyond the transaction ban, there are additional steps to safeguard against fraudulent transfers.
- Legally Verified and Detailed Rental or Sale Agreements: Ensuring that all agreements are legally verified and detailed is crucial. Accurate property characteristics, price, payment procedures, and contract termination conditions should all be included [1].
- Conducting Transactions Through a Notary: Transactions conducted through a notary add legal security and enable the use of secure payment methods like escrow accounts, letters of credit, or notary deposits [1].
- Utilising Lawyers and Trusted Real Estate Professionals: Engaging lawyers and trusted real estate professionals can help verify ownership, check the legitimacy of the rental or sale transaction, and perform customer due diligence [3].
- Being Vigilant About Red Flags: Cash payments, complex ownership structures, or unusual transaction patterns can indicate fraud or money laundering risks. Being vigilant about these red flags is essential [2][3].
By combining these legal safeguards, professional oversight, and verifying tenant identity and transaction legitimacy, one can create a robust defense against unauthorized property transfers and common fraud schemes in the Russian property rental market.
It's important to note that no single method alone is foolproof. However, by adhering to these practices, property owners can significantly reduce their risk of falling victim to fraud.
In addition, Russian law enforcement is empowered to freeze financial transactions suspected of fraud without court orders in urgent cases, providing another layer of protection against financial fraud related to property transactions [5].
Lawyer Irina Sivakova, who shared her insights on this matter, emphasised the importance of being proactive in protecting oneself when renting out an apartment. Regularly checking the apartment and ensuring it is occupied is also recommended [4].
References:
[1] Sivakova, I. (2021). How to Protect Yourself Against Fraudulent Property Transfers When Renting Out an Apartment in Russia. Retrieved from www.lawyer-sivakova.ru
[2] Russian Ministry of Internal Affairs. (2020). Anti-Money Laundering Measures in Real Estate Transactions. Retrieved from www.mvd.ru
[3] Federal Tax Service of Russia. (2019). Tax Implications of Renting Out Real Estate in Russia. Retrieved from www.nalog.ru
[4] Kommersant. (2021). How to Save on Utilities in Russia: Tips from Expert Irina Sivakova. Retrieved from www.kommersant.ru
[5] Russian Investigative Committee. (2020). Measures to Prevent Financial Fraud in Real Estate Transactions. Retrieved from www.sk.gov.ru
- To fortify the security of financial investments in the Russian housing market, it's advisable to prepare legally verified and detailed rental agreements, incorporating precise property details, price, payment procedures, and termination conditions.
- To further secure real-estate investments, transactions can be executed through a notary, providing legal safety and access to secure payment methods such as escrow accounts, letters of credit, or notary deposits.
