Moscow’s 30-Day Escrow Plan Aims to Shield Pensioners From Real Estate Scams
Moscow has seen a surge in real estate fraud targeting pensioners, with over 3,000 families falling victim in the past month alone. To combat this, Leonid Slutsky, leader of the LDPR, has proposed a 'secure property transactions' system, which involves holding buyer's funds in a special escrow account for 30 days from today to inform pensioners about risks and common fraud schemes.
The system, similar to Valentina Matvienko's earlier proposal for 'secure land transactions', aims to protect elderly citizens from scams involving the sale of apartments. Typical fraud cases involve pensioners selling properties, only to file lawsuits later to invalidate transactions, leaving buyers with neither housing nor money. Since the start of 2024, the number of Muscovites seeking to block real estate transactions without their direct involvement has increased by 50%. The Unified State Register of Real Estate has recorded 115,600 new entries of this kind.
Some developers are taking advantage of the situation by promoting new builds as a safer alternative in advertisements. However, the proposed system could deter scammers, as they would have to wait 30 days to cash in on deals, potentially losing interest in the process.
The 'secure property transactions' system, if implemented, could significantly reduce the number of real estate fraud cases involving pensioners in Moscow. It would provide a 30-day window for informing and educating sellers about potential risks and common scams, and could also discourage scammers due to the delay in accessing funds.
