Buying a home on the existing market is a serious investment and a responsible step that requires thorough due diligence. Unfortunately, the real estate market is not without its share of fraudulent schemes, and to avoid falling victim to unscrupulous sellers, it's essential to thoroughly review the documents and consider numerous nuances. Professional market participants agree: thorough due diligence of the seller and the property itself is the key to a secure transaction. Below is a detailed step-by-step guide to help you independently inspect the apartment and minimize risks.
Obtaining an extract from the Unified State Register of Real Estate. Legal clarity for an apartment begins with reviewing the title documents. First, request an extract from the Unified State Register of Real Estate (USRRE) and a registration certificate. This document allows you to learn about the characteristics of the property, which may lead to the creation of ownership rights, as well as information about the presence of collateral or other encumbrances. You can order an extract yourself through the "Provision of USRRE Information" service on the Rosreestr website using your Gosuslugi account. We recommend ordering two types of extracts: "On the characteristics and rights to real estate" and "On the transfer of rights to obtain real estate" for the most complete information. Important: As of March 1, 2023, owner information in the USRRE extract is hidden by default for individuals. You can obtain it in two ways: either the seller submits an application to Rosreestr with the disclosed information, or you and the seller jointly contact a notary.
Request a notarized power of attorney (if necessary). If the apartment is being shown to you by a representative other than the owner, be sure to request a notarized power of attorney. It must clearly indicate the residential address and passport details of the owner and the authorized representative. Warning: Selling by power of attorney always carries increased risks. If possible, personally involve the owner in the transaction. If this is not possible, carefully check the details of the owner and the notary who issued the power of attorney. You can verify the validity of a notarized document using a QR code through the Unified Notary Information System (UIS), as well as through the service on the website of the Federal Notary Chamber.
Verify the reliability of the property rights. Carefully review the documentation and confirm how the seller acquired the property: by purchase and sale agreement, privatization, gift, or inheritance. The greatest risk of a legal challenge is not associated with an apartment acquired by gift or inheritance, especially if the ownership period is less than three years (the statute of limitations for inheritance disputes).
Indicate who is registered in the apartment. Request a registration certificate (Form 9) or a certificate of family composition (part of the Unified Housing Document). These documents contain information about everyone registered in the apartment, as well as those who were previously registered. This will help indicate to representatives of persons who may have the right to reside after the transaction (for example, minors, those temporarily absent, or leaving). Pay particular attention to privatized apartments if minors were registered there at the time of privatization. In such cases, children could receive a share in the property, and the transaction required permission from authorities who monitor their living conditions.
Review your spouse's decision. If the apartment was purchased during the marriage, she will jointly occupy the property and require a notarized sale agreement. In the event of a divorce, file a request to the court for division of property. The absence of such an agreement or decision may be grounds for annulment of the transaction. Spouse consent is not required if the apartment was received by inheritance or gift. Important: If the apartment was purchased using maternity capital, but the children's shares were not allocated, this is a violation of the law. Request a certificate from the Pension Fund regarding the remaining social security amount.
Request information from the Ministry of Internal Affairs. Check the seller's territorial passports. Use the online service of the Russian Ministry of Internal Affairs to verify the document by series and number. Make sure the passport details match the information in the extract from the Unified State Register of Real Estate.
Check the mortgage certificate. If the apartment was purchased with a mortgage, request a certificate from the bank confirming full repayment of the loan. If the mortgage is outstanding, you will need to obtain a certificate of liability and agree on the transaction details with the bank, as the apartment is mortgaged.
Check the PND and ND certificates to request information from the psychiatric (PND) and drug addiction (ND) clinics. This may lead to the risk of the transaction being contested if the seller is unaware of their actions at the time of execution. The fact that the seller is registered is not always a decisive factor, but requires an additional assessment of all the circumstances of the transaction, possibly including an examination on the day of signing the agreement.
Study the cadastral passport. The cadastral passport contains up-to-date information about the property: cadastral number, address, area, and condition. You can verify the accuracy of this information through the Rosreestr online service by comparing it with the seller's information.
Check utility arrears. To avoid paying someone else's debts, check for liability for utility bills and, possibly, for major repairs. Remember that major repair arrears are transferred to the new owner. Information can be obtained from a complex housing document or a separate document.
Maintain online security. Modern online services simplify checks, but require adherence to basic security rules: never provide bank card information (CVV/CVC, codes from SMS); do not click suspicious links or enter them into your personal information; always check the website address and the lock icon in your browser; Under no circumstances is an advance payment required unless it's a lease (which may include the last month's payment and a security deposit); discuss the details of the transaction in built-in messaging platforms, not in chats.
Don't neglect specialists. To ensure maximum security and save time, it is recommended to consult a realtor in conjunction with a lawyer. Professionals can conduct a thorough review of documents and transactions, identify hidden risks, and ensure the legal integrity of the transaction. It is also worth considering having the purchase and sale agreement executed by a notary. The notary conducts a thorough review of all documents, including the parties to the transaction, to ensure legal capacity, the absence of encumbrances, bankruptcy, and the validity of passports in the Ministry of Internal Affairs databases. In the event of an error, the notary bears full financial liability, which serves as an additional guarantee for the parties to the transaction.
Bankruptcy and power of attorney check. Bankruptcy proceedings are checked through the State Registration Bulletin (for legal entities) and the Unified Federal Register of Bankruptcy Information (UFRBI). The Bulletin can also be used to check for the revocation of powers of attorney.
Review of court cases and enforcement proceedings. Use the Pravosudie State Automated System to check information on litigation involving cases in courts of general jurisdiction. For legal entities, use the arbitration case file (by Taxpayer Identification Number (TIN) or Primary State Registration Number (OGRN)). This will help identify potential risks and conflicts. Also, visit the "Database of Enforcement Proceedings" on the Federal Bailiff Service website to learn about ongoing or recently completed enforcement proceedings against companies.
Buying an apartment on the secondary market is a real quest! But with this guide and, if necessary, my expertise in Real estate disputes, you will be able to successfully complete it and calmly acquire your ideal home.