The expert supported the principle of settlement of real estate transactions proposed by the Central Bank

Kirakosyan: the Bank of Russia's initiative actually strengthens the protection of buyers of new apartments

Wed, 12/03/2025 - 01:38

Photo: IZVESTIA/Yulia Mayorova

Озвучить текст

Select important

Off

Susana Kirakosyan, adviser to the BVMP Law Firm, Deputy Chairman of the Committee of the Chamber of Commerce and Industry of the Russian Federation on Entrepreneurship in the housing and Communal Services sector, told Izvestia that the Central Bank's initiative to switch to the principle of "money in exchange for ownership" significantly increases the level of security for home buyers in new buildings.

Without housing, the guilty: how conscientious buyers are left without apartments because of scammers

Defrauded apartment sellers challenge transactions in court, leaving buyers with nothing.

"The point is that the money will be transferred to the developer only after the buyer receives the registered ownership. This reduces the risk of problematic transactions and makes the purchase process much more transparent," says Kirakosyan.

The expert explains that such an innovation was most likely the regulator's response to the vulnerabilities of the current escrow account system, which today protects the buyer only at the construction stage, while installment transactions and the purchase of ready-made housing remain outside the scope of these mechanisms.

In addition, Kirakosyan notes that the new model will require careful fine-tuning of legislation and strengthening control systems.

"Without additional measures, there is a risk that individual developers will have a shortage of working capital, which, in turn, may lead to a delay in construction. Therefore, it is important that the transition to the new system is accompanied by thoughtful support and regulatory tools," the expert warns.

Earlier it became known that the regulator is considering the principle of "money in exchange for ownership." The central bank has proposed to introduce a new principle of settlements with developers. The initiative was reflected in the "Financial Stability Review" for the second and third quarters of 2025.