Krasnodar, August 8. What aspects of real estate transactions should be considered to avoid losing property in the future.
Buying your own property is a joyful event for anyone. However, to ensure this happiness remains untarnished, it’s essential to approach the matter with seriousness and thorough verification. The checklist of necessary checks varies depending on the type of property. Here’s what and how to verify.
No Surprises
When purchasing an apartment, for example, at the early construction stage, it’s important to review the project documentation on the наш.дом.рф website: it should match all the developer’s stated obligations. Researching the developer’s reputation is also advisable. The agreement must be formalized as an equity participation contract, with payments made to a dedicated escrow account, and state registration is mandatory. Some unscrupulous sellers may suggest signing a work contract or paying in cash—these practices carry risks and offer no guarantees of timely property ownership transfer.
If buying on the secondary market, the checklist is even more extensive. First, request an extract from the Unified State Register to verify the owner’s details, actual versus registered square footage, and any liens, mortgages, or legal disputes. If the seller has children, check whether maternity capital was used in the purchase—otherwise, the prosecutor’s office may demand shares for the children, invalidating the transaction.
The highest risks arise if the property was inherited or privatized. If the seller’s ownership is based on an inheritance certificate, there’s no guarantee other heirs won’t challenge the transaction, especially if they weren’t notified of the relative’s death. Similarly, dependents of the deceased may have rights to a mandatory share. In privatization cases, individuals who previously refused privatization retain lifetime residency rights—something future owners may find undesirable.
Special attention should be paid to square footage. Unauthorized reconfigurations, such as merging a balcony with a kitchen, may alter the property’s legal dimensions. Without proper permits, local authorities can legally compel the owner to revert the changes.
Land Considerations
For land purchases, ensure the plot is registered in the cadastre, as visible in the extract from the Unified State Register. Verify the permitted land use category and confirm boundary coordinates—without them, the transaction won’t proceed. Hiring a cadastral engineer can help identify discrepancies, such as incorrect fencing or technical errors. Additionally, request municipal records to confirm allowable constructions and any usage restrictions—like high-pressure gas pipelines with no-build zones.
In one recent case, plots marketed as elite cottage construction sites were actually field garden plots where building was legally prohibited, including fences.
Recent legal changes also require construction to begin within three years of land ownership registration.
Vigilance on All Fronts
When acquiring a house with land, assess risks related to both the dwelling and the plot. Check utility availability, residency registration eligibility, and whether the land’s permitted use aligns with the building’s purpose. Some sellers misrepresent properties—for instance, claiming connected utilities when only a well is available.
Always request documentation on registered occupants, especially minors, as their delayed eviction may require court proceedings. Scrutinize the seller’s background: obtain mental health records (to avoid future incapacity claims) and check for outstanding debts (which could lead to seizure during registration).
Bankruptcy risks also exist—transactions can be contested within three years if the seller is declared bankrupt. To prove good faith, the contract must reflect the actual price without understatement.
These checks apply equally to residential, non-residential, and commercial properties. If the seller is a legal entity, ensure there’s a shareholder resolution approving the sale or proof the transaction isn’t classified as “major.”
For leases, key contract terms should cover duration, renovation permissions, subletting rights, automatic renewal, late fees, and utility inclusions.
While acquiring property is rewarding, meticulous documentation review and risk mitigation are crucial to avoid the pitfalls outlined above.
