What are common Russian real estate transaction procedures
Common procedures for real estate transactions in Russia involve several formal steps to ensure legal ownership transfer and comply with regulations. The main steps include:
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Preliminary Agreement: The buyer finds a property and negotiates terms with the seller, often signing a preliminary agreement that outlines the sale conditions and required documents. A deposit (usually about 10% of the price) may be paid at this stage.
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Final Purchase Agreement: The final contract must be in writing and signed by both parties, usually in the presence of a notary. Electronic signatures are not accepted. This contract details all terms of the sale.
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Payment: The buyer pays the remaining purchase price, usually through a bank.
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Acceptance Agreement: Upon property transfer, an acceptance agreement is signed to confirm the property condition and transfer date.
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Registration: The sale must be registered with the Unified State Register of Real Estate (Rosreestr). Applications and supporting documents (sale contract, parties’ IDs, proof of payment of state fees, title documents) are submitted. Registration formalizes the change of ownership.
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Due Diligence: Buyers should verify there are no encumbrances (like mortgages or legal disputes) on the property before purchase.
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Special Requirements for Foreigners: Foreign buyers may need additional documents—passport with notarized Russian translation, proof of legal stay, and sometimes permission from a government commission, especially if from “unfriendly” countries.
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Taxes and Fees: State duty for registration is typically around 2,000 rubles. Sellers pay capital gains tax, varying by tax residency status.
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Transaction Timing: Registration usually takes 7 to 30 days depending on the process chosen (expedited or normal).
These steps ensure legal compliance and property rights transfer in Russia’s regulated real estate market. 1, 2, 3, 4, 5