New Developments In Real Estate Title And Cadastral Registration

06.02.2014

Legal Update No. 448, 6 February 2014

Goltsblat BLP advises than a number of amendments relating to title registration on the basis of notarised documents took effect on 1 February 2014 (Federal Law No. 379-FZ dated 21 December 2013 "On Amending Certain Legislative Acts of the Russian Federation"), i.e.:

  • In such cases, titles are now to be registered within a shorter period of five business days;
  • The Realty Register no longer carries out any legality check of notarised deals (to ensure there are no grounds for refusing registration). It is the notaries certifying relevant deals that are now fully responsible for performing such a check. Previously, the same provision applied only to notarised mortgage contracts or agreements entailing a mortgage by virtue of law.

Please also be reminded that Federal Law No. 250-FZ "On Amending Certain Legislative Acts of the Russian Federation…") dated 23 July 2013 (the "Law") has been in effect since
1 October 2013. Below we provide a list of what we see as the key amendments:

  • Cadastral statements on the cadastral value of real estate are issued free of charge to anyone at their request.
  • Proper names of real estate properties, if any, may now be entered in the state real estate cadastre (the “SREC”).
  • Adjustments have been made to the provisions of the law regulating correction of technical errors committed when information is entered in the Realty Register. For instance, no technical error made in the Realty Register entries may be corrected if this entails termination, creation or transfer of a registered title.
  • The list and the format of documents provided for title and cadastral registration purposes has been specified. For instance, copies of constituent documents provided in a set of documentation for registration purposes may be certified by the seal of a corporate entity and signed by a person authorised to act on its behalf without power of attorney. Delimitation and technical plans and inspection reports may be provided for cadastral registration purposes only as electronic documents certified by the reinforced, qualified signature of a cadastral engineer (pursuant to a contract with the cadastral engineer, such documents may also be drawn up in hard copy under his/her seal and signature).
  • Information about resulting real estate and the portion of a real estate property covered by a limitation of (encumbrance on) the right in rem thereto may now be kept for a longer period, five years, by the SREC as temporary data until the title to the relevant real estate/the encumbrance over the part of the real property undergoes registration. The Rules specifying that information entered in the SREC is to be treated as temporary data do not apply to registration of the portion of a real estate property covered by a limitation of (an encumbrance on) the right in rem if this limitation (encumbrance) is not subject to registration (as, for instance, is the case with a lease for up to 1 year). Moreover, information about land plot portions registered in connection with determining a zone with specific territory use conditions will not be considered as temporary data.
  • There are a number of new developments in the Law that extend the powers of property owners to protect their registered titles, i.e.:
    • A property owner or its legal representative may file an application seeking that registration of any transfer, limitation (encumbrance) or termination of the title to this real estate not be permitted without the owner’s personal involvement. If this is recorded in the Realty Register, the latter will return without consideration any application for title registration submitted by others, including any of the owner’s representatives other than its legal representative, or another party to the transaction, where the law allows titles to be registered at any party's request
    • A person whose title was previously registered in the Realty Register (the “previous owner") may file an application with the Realty Register objecting to the currently registered title to the real estate. A record of the previous owner's objection as entered in the Realty Register is cancelled automatically after three months, unless the previous owner has contested the registered title. The record itself does not block any subsequent registration actions with the real estate. On the other hand, it serves as an indicator for all third parties of there being legal claims with respect to this property.
    These provisions are designed to prevent criminal falsification in the Realty Register, specifically for giving the impression of a bona fide real estate acquirer.
  • The next steps have been made towards unifying the record-keeping procedures of the Realty Register and the SREC and, eventually, consolidating these two. For instance, the timelines for real estate title and for cadastral registration have been reduced and balanced against each other so that, in general, these procedures should now take 18 calendar days each.
  • Subject to relevant leases being signed for more than five years, tenants of state or municipal buildings, structures, premises or incomplete construction projects are now entitled to apply for cadastral registration of changes in the characteristics of real estate the details of which are specified in the SREC.

Clearly, there are quite a few provisions in the Law requiring that relevant by-law regulations be adopted and that the software used by the cadastral recording and title registration authorities be improved. In this connection, practical implementation of these provisions might currently be problematical.

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