Victims of Deception: New Law Protects Real Estate Buyers from Transactions Influenced by Scammers

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The Russian secondary housing market has faced fraudulent schemes involving the contestation of transactions. These schemes have become widespread, posing a threat to the financial security of thousands of families. In response, the State Duma has developed a package of measures aimed at creating a reliable barrier against fraudsters.

The basis of the scheme is a simple situation. An elderly person, often a pensioner, sells an apartment at a reduced price. After receiving the money and disappearing, the seller then goes to court to have the transaction declared invalid, citing fraud or incapacity. Courts, standing up for a socially vulnerable category, often satisfy such claims.

As a result, a bona fide buyer, who has invested not only in the purchase but also in repairs, loses everything. According to current data, there are already more than 3,000 such court decisions in the country. Among the victims are participants in the Special Military Operation (SVO), large families, ordinary workers who took out loans and now remain with debts and without housing.

State Duma deputies Sergei Kolunov and Ilya Volfson have initiated a proposal to protect bona fide buyers. For all transactions, mandatory notarization is proposed. The notary will be required to verify the capacity of the parties and the cleanliness of the transaction, making life more difficult for fraudsters.

In addition, it is proposed to introduce mandatory insurance against the risk of contesting a transaction if the real estate is the only property for the seller or buyer. This will guarantee financial compensation if the court ultimately rules against the buyer.

Legislators have submitted their proposals to Igor Krasnov, Chairman of the Supreme Court of the Russian Federation, for evaluation. In their opinion, the new measures should shift the focus from post-fraud "investigations" to preventive protection of citizens. If the initiative is supported, it could not only restore trust in the secondary housing market but also block the path for criminal schemes that have already begun to spread to other assets, such as cars.