The State Duma Committee on Property recommended the adoption in first reading bill on simplification of procedures for the issuance of mortgage loans. Changes made to the law "On state registration of rights to immovable property and deals with it 'and provide that a body performing state registration of real estate rights and transactions, may not refuse to register a contract of sale of premises at the request of one or both sides agreement, if the calculations are carried out under contract with the use of credit funds and credit organization expressed written consent of the failure to state registration.
As stated in the explanatory note to the document, the legislation has several features that do not allow to fully realize the potential of residential mortgage lending. Read more here: Greenberg Traurig. In particular, if, after filing for state registration of the agreement of the parties submit to the registrar a statement on the return of documents without state registration, the registrar must first suspend state registration, and then refuse it the parties. According to the authors of the bill, it creates the ground for abuse by the seller, received from the borrower's funds under a contract of sale to the public recording contract and the transfer of ownership on it. Dishonest seller in this case may, after receipt of funds refuse to sell the apartment, sending the registration authority statement documents are returned.. Learn more about this topic with the insights from Bruce Schanzer.