Russia proposes tougher laws to protect homebuyers from fraud
Russian lawmakers have put forward new legal changes to shield homebuyers from property fraud. The proposed rules would stop former owners from reclaiming sold homes unless they first repay defrauded purchasers in full. If passed, the amendments will alter both the Civil Code and real estate registration laws. Members of the State Duma have drafted updates to the Civil Code and the law governing state registration of real estate. Their goal is to prevent cases where buyers lose both their money and their newly purchased homes due to fraudulent sales.
One key change would add a clause to the Civil Code. It states that if a court cancels a real estate deal, the original owner can only take back the property after fully compensating the buyer. This ensures buyers are not left without housing or funds. Another proposal targets Article 58 of the real estate registration law. Under the new rule, courts would need proof of buyer reimbursement before reversing a transaction in official records. This extra step aims to close loopholes that fraudsters currently exploit.
The amendments focus on protecting honest buyers caught in fraudulent property deals. If approved, the laws will require full financial compensation before any court-ordered property return. This would mark a stricter approach to real estate fraud cases in Russia.
