Business saw the risks of housing fraud due to the closure of USRN

The business has warned the authorities about the risks of an increase in cases of fraud in the purchase of housing due to amendments to the law “On Personal Data”. Realtors believe that if the data from the Unified State Register of Real Estate (EGRN) is closed to third parties, it will be easier for swindlers to impersonate the owner and disappear with the money. Representatives of the industry sent letters to the Cabinet of Ministers and the Ministry of Construction (Izvestia has it).

At the beginning of July 2022, the State Duma adopted in the third reading amendments to the Federal Law “On Personal Data”, which prohibit the transfer of data from the USRN to third parties. The changes will come into effect on March 1, 2023.

The document complicates the leakage of personal data of citizens, one of the developers of the amendments, State Duma deputy Alexander Yushchenko, told Izvestia. Upon request and agreement with the owner, everyone will be able to obtain data from the USRN, he added.

Despite the importance of the amendments, their significance is extremely ambiguous, says the president of the Russian Guild of Realtors (RGR), Irina Zyryanova. The EGRN was created as an open array of data on real estate objects and copyright holders, the information of which is the only confirmation of the right to the object, she explained.

Today, all participants in housing purchase and sale transactions rely on the data of this registry. But after the amendments come into force, in fact, there will be nothing to rely on, the expert emphasized.

The measure may provoke an increase in cases of fraud in the sale of secondary housing, said the appeal of the federal company “Etazhi” to the government of the Russian Federation and the Ministry of Construction. The press service of the Cabinet of Ministers told Izvestiya that the letter from the realtors was received by the Russian government apparatus, and it was sent to Rosreestr for consideration.

Read more in the exclusive Izvestia article:

“The moment: business saw the risks of housing fraud due to the closure of the USRN”

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