Case squared: gifting schemes have become top of the list for housing scams
The main scheme of real estate fraud in 2024 was operations with gift contracts, analysts told Izvestia. The damage from such scams at the end of the year amounted to almost 3 billion rubles, which is 21% more than in 2023. Most often criminals conclude fictitious contracts with the deceased owner: attackers either learn about the death of a person and take advantage of this fact, or kill the owner to take possession of his real estate. At the same time fraudulent actions with gift contracts are realized and relatives of owners, experts note and remind that the solution to the problem should be the entry into force of the law on mandatory notarization of real estate transactions.
How many real estate fraudsters caught
In 2024, the share of convictions for fraud with gift contracts from the total number of convictions for real estate fraud increased to 35%, according to the report of the research center "Analytics. Business. Law" (Izvestiya has it). Thus, in the first nine months of 2024, almost 5.5 thousand crimes related to the transfer of the right to real estate were committed, 60% of them - in large and especially large amounts.
In six years, from 2019, the number of such crimes exceeded 40 thousand. The number of convictions for fraud using a gift agreement also increased during this period - by 96%. In the first ten months of 2024 compared to the full year of 2023, this figure rose by another 10%.
"The average proportion of verdicts for deed-in-lieu of gift contract fraud to total real estate fraud convictions is 23% over six years. The gift contract is more vulnerable than other types of agreements," the study authors note.
The amount of damage from the actions of fraudsters has also increased. So, in 2019, the losses of citizens amounted to about 1.14 billion rubles. In 2020, the damage increased to 1.25 billion rubles (+9%). And in 2021, it reached 1.5 billion rubles (+20%).
- A significant increase in damage to citizens was recorded in 2022, with losses rising to 2.11 billion rubles (+41%). This sharp increase is likely due to a complex of factors, including increased activity of fraudsters and rising real estate prices. In 2023, the figure amounted to 2.17 billion rubles, " the Federal Chamber of Notaries (FNP) told Izvestia.
At the end of 2024, the damage is expected to reach 2.61 billion rubles, which will exceed the last year's figure by 21%.
The solution to the problem of the popularity of fraudulent schemes with real estate donation agreements may be the introduction of a mandatory notarial form for all types of such agreements, said the FNP. In early December 2024, the State Duma adopted a law that the gift agreement between citizens must necessarily be certified by a notary. Now this procedure is optional, the law will come into force on January 13, 2025.
"The absence of such a requirement made it easier to deceive uninformed and vulnerable persons, usually elderly or in a difficult life situation," the chamber pointed out. - Fraudsters used forged documents or persuaded the donor to sign the contract under psychological pressure, without providing comfortable time to think about their actions and consequences."
What schemes fraudsters use
Most often under the fraudulent schemes using the contract of gift fall residential premises (93%), indicated in the FNP. Commercial real estate accounts for 5%, land plots - 2%. Among the methods of realization of scams prevails abuse of trust - 65% of cases.
As explained by the Supreme Court, the abuse of trust is the use of a relationship with the owner of the property or another person authorized to make decisions on this property for a mercenary purpose.
- The trust of the donor may be conditioned, for example, by friendly or family relations, authority or deliberate care on the part of the fraudster," the notaries reminded.
The remaining 35% are cases of deception of victims.
The most popular fraud scheme this year was the conclusion of a fictitious contract with a deceased owner. Since 2019, such verdicts have become 66% more.
- There are two possible variants here: fraudsters learn about the death of a person and simply use this fact in their own interests. Or criminals themselves deprive a person of life to take possession of his real estate, - told in the notary chamber.
In the second place - the conclusion of a gift agreement under the pretext of providing legal assistance. For example, in minimizing planned expenses, solving existing debt obligations, drawing up documents, assistance in legalizing money.
- From 2019 to 2024, the number of such verdicts increased by 145%," the FNP added. - Attackers rub into trust by providing legal advice or promising help in solving financial problems. Then convince the victim that for the case should be reissued real estate in their name. And as soon as the person, thinking that this is just a formality, gives the attackers the real estate, they hurry to sell it. They keep the money.
Then comes the conclusion of fictitious gift contracts with persons who abuse alcoholic beverages, suffering from drug addiction, mental disorders and so on. In six years, the popularity of this scheme has grown by 72%.
One of the most high-profile cases of real estate fraud this year was the case of singer Larisa Dolina. Attackers persuaded her to sell an apartment in the center of Moscow, and the money received was transferred to a supposedly safe account. Now Dolina is suing the buyer of housing and trying to challenge the deal. A criminal case of fraud has been opened.
How to protect yourself
The surge of fraudulent actions with real estate noted and real estate agencies. So, in 2024, the company "Etazhi" identified three times more suspicious sellers than in 2023, and blocked their transactions. Elizaveta Stolbova, director of the legal department of the company, told Izvestia.
The signs of most dubious transactions, according to her, are almost the same. As a rule, fraudsters choose single elderly people who request an urgent sale of their real estate. This category is often unable to explain why they are selling their only home and what they plan to buy in return.
- We had a case when we were approached by a woman of retirement age with a request to urgently sell her apartment at a very low price, which was suspicious, - explained the expert. - She told us that she was selling in order to move to her relatives in another city, but during the inspection it turned out that she had no relatives, and that she was forced to sell the property by fraudsters. Naturally, such a transaction was blocked, and the woman was given an explanatory talk.
Against the background of an increase in fraudulent schemes, the company was forced to intensify checks on both sellers and buyers of real estate.
- When our suspicions of fraudulent actions are confirmed, we send the information to the police and call a squad so that the victim of fraudsters can write a statement to the law enforcement authorities. Otherwise, there are risks that fraudsters will force to realize the real estate, - said the expert.
She also reminded that there are many cases similar to the situation of Larisa Dolina - fraudsters introduce themselves to law enforcement officers, whom victims trust and believe that they are involved in the operation to catch fraudsters, and their money will really be transferred to safe accounts.
- It is very difficult to change their minds and bring them back to reality," said Elizaveta Stolbova.
Endowments are one of the most attractive tools for misappropriation of other people's housing not only for fraudsters, but also for unscrupulous relatives of elderly owners, said Vadim Tkachenko, lawyer, founder and CEO of the vvCube consulting group.
- If you execute a gift agreement through a notary, the risks of taking away from the owner of housing is reduced to zero. Notary explains to the parties the essence and consequences of signing each clause of the document, clarifies the real will of the parties, eliminates the risk of making a deal under pressure, under the influence of alcohol, drugs and so on, - he emphasized. - And if he suspects a scam, he will refuse to certify the transaction.
Any notary, reminded Vadim Tkachenko, now bears full property responsibility for the transaction certified by him. This means that in case of a mistake, the victim will be fully compensated for the damage - Article 17 of the Federal Law on Notaries.
