The Federal Target Program “Development of a unified state system of registration of title and cadastral registration of real estate (2014 – 2019) (the “Program”) prepared by the Ministry of Economic Development of the Russian Federation was approved by the Government of the Russian Federation during a meeting on October 3, 2013.

The Program’s main objectives are: to consolidate the Unified State Register of Title to Real Estate and Transaction Therewith (‘EGRP’) and State Cadastral Register (‘GKN’) into a single state register of real estate (‘EGRON’); to raise the quality of data in the State Register (‘Rosreestr’) information resources for purposes of switching to the single real estate tax; to render services based on a “one-stop shop” principle; to reduce the timeframes for state registration of title and cadastral registration, as well as to ensure that the public can assess the quality of services.

It should be noted that a number of measures aimed at optimizing the manner of providing state services in respect of state cadastral registration of real estate and state registration of title to real estate have already been taken.

On October 1, 2013 the Federal Law No.250-FZ “On amending certain legislative acts of the Russian Federation pertaining to state registration of title and state cadastral registration of real estate” dated July 23, 2013 (the “Law”) entered into force.

The Law was adopted for purposes of implementing measures set forth by the roadmap “Improving quality of state services in respect of state cadastral registration of real estate and state registration of title to real estate and transactions therewith” approved by the Government of the Russian Federation on December 1, 2012.

The Law substantially amends the procedures for state registration of title to real estate and cadastral registration of real estate, as well as provides to individuals and legal entities additional tools for protecting ownership titles.

The Law envisages, among other things, the following amendments:

1.    Shorter timeframes

The total timeframe for state registration of title and cadastral registration of real estate is reduced from 20 to 18 calendar days.

2.    Simplified registration procedure

i)    Documents for state registration of title to real estate may be submitted in electronic form through the Internet.

Now an application for state registration of title, as well as other documents required for the registration may be submitted in electronic form, provided they are verified with the applicant’s encrypted and certified digital signature. Such application should be submitted to the registration authority by filling out the form posted on the web portal of state and municipal services or on the official web site of the authority in charge of state registration of title.

ii)    Now state registration of title does not require a document confirming payment of the state duty. The applicant can provide this document may only on his own initiative.

However, it should be taken into account that if there is no information in the State information system on state and municipal payments of the state duty having been paid and the document confirming payment of the duty was not provided together with the application for state registration of title, the documents required for registration of title will not be accepted for examination.

3.    Entry on objections against registered title

The Law grants a possibility and establishes a procedure for introducing entries into the EGRP on any objections by the former rightholder against title registered to the real estate. The extract from the EGRP on the real estate facility should reflect such information to improve protection of participants in real estate transactions.

4.    Entry on non-possibility of registration without personal participation

A real estate owner is now entitled to declare the non-possibility of state registration of transfer, restriction (encumbrance) or termination of right to such real estate without his personal participation.

Such entry made into the EGRP serves as grounds for dismissing without consideration any application filed by another party (being neither the real estate owner, nor his lawful representative) for registration actions with the real estate facility in question. Lawmakers believe that such innovation will reduce the number of fraudulent transactions involving real estate and carried out through an agent.

5.    Results of cadastral works to be provided in electronic form

A survey plan, technical plan and inspection report confirming that a real estate facility ceased to exist, which constitute the results of works performed by cadastral engineers, should be submitted to the cadastral registration authority only in electronic form and should be certified with the cadastral engineer’s encrypted and certified digital signature.

A number of innovations provided by the Law will be implemented only after the Ministry of Economic Development of the Russian Federation publishes additional legislative acts and all technical and procedural aspects are fine-tuned.

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Elena Stepanova, Moscow Office of Capital Legal Services.

This Information letter keeps the clients of the Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this Information letter shall not be deemed as legal opinions.