Is it possible for someone who is not a Russian citizen to legally purchase property in Moscow?

Let's imagine that you, a foreigner, want to buy real estate in Russia from a Russian citizen. What should you remember to avoid legal issues and scams? Let's discuss it.

Naturally, the first piece of advice that will apply not only to Russian citizens but to any seller is identity verification. This is what a Russian passport looks like. This is what you should check when verifying the passport: no corrupt fonts, no missing signature, no watermarks, and no strange visas in the country of the transaction (if applicable). If the visa looks unusual or if the passport was issued a long time ago but looks like new, it’s a red flag.

The best idea is to run a check on the future seller's identity documents. Ask them to show you their internal passport. It’s the main ID for Russian citizens in Russia. You can see an example on the screen. Enter the passport details on the government website by clicking on the link shown, and you’ll find out if the document is existing and valid.

It’s more complicated with the travel passport, but as lawyers, we can check it too for compliance with the state requirements, as well as entry and exit stamps, claims of other possible owners, and more.

It may happen that you buy the house of your dreams, only to find out that the seller was not the sole rightful owner. The seller might not have had the legal authority to sell it. In such cases, claimants can go to court, and depending on what the judge decides, either the deal will be canceled, or the claimants will demand compensation. Of course, this depends heavily on the laws of the country, but ideally, you want to ensure that the person selling the property has the right to do so.

When can this happen? Firstly, if a person is married, Russian law states that anything acquired during the marriage is community property and belongs to both spouses equally, 50/50. This means you will at least need the consent of the spouse, even if the property is registered solely in the name of one spouse.

Secondly, the property might belong to a person who is now deceased, and multiple Russian heirs may be laying claim to it. If probate has already been initiated, one of the heirs who owns a share might want to sell the property quickly before it is divided among the other heirs. Sadly, you are unlikely to find out this information yourself without the help of a lawyer.

Another issue is the power of attorney. Real estate can also be sold via a power of attorney, but in this case, the chance of fraud is very high. It is crucial to check the power of attorney before signing any contract. What must a power of attorney include?

A power of attorney issued in Russia must be notarized on a yellow form with a notary seal, containing the notary’s coat of arms. It must include the document's name, the place of issue (city and notary office), the date of execution, information about the principal and the attorney-in-fact (full name, place of residence, and some other data), as well as the powers granted to the attorney-in-fact (i.e., what they are allowed to do). It should also include the signature of the principal and may contain the period for which the power of attorney is valid, along with any rights regarding delegation if applicable.

If any of the required points are missing, it could either be a forgery or simply an invalid document. Even if the power of attorney is genuine and was correctly issued by the notary, there’s no guarantee the principal hasn’t canceled it a few days ago. This can only be checked through the notary’s system.

Additionally, please note that such a document ceases to be valid if the person represented dies, is declared incompetent, has limited capacity, or is declared missing. Unfortunately, it’s extremely difficult for a Russian citizen, let alone a foreigner, to check this, so don’t hesitate to contact us if you need help with Russian documents.