The lawyer assessed the chances of investors to recover damages from residential housing scams

Investors and buyers who have suffered from fraud in the individual housing construction (IHS) market are often unable to return funds even after criminal cases are initiated due to the lack of effective protection mechanisms in civil legislation. Lawyer Ekaterina Krasnova told Izvestia about this.

Find a crook: the number of sentences for real estate fraud has increased dramatically

In 2025, almost 2.6 thousand such court decisions were recorded.

"The law does not protect an investor from his own indiscretion. Money transferred under an agreement that is not secured by collateral, a bank guarantee or an escrow account is a commercial risk," she explained.

According to the expert, if the transaction is invalidated due to forged documents or misuse of land, criminal prosecution remains the only way to refund funds. However, in practice, this often does not work.

"In the absence of assets from fraudsters, the victim is often left with nothing," the lawyer emphasized.

The editorial's interlocutor also formulated minimum safety rules for potential buyers of private homes.

"Check the ownership of the site, the permitted use and the availability of the project declaration. Otherwise, the law is powerless," she recommended.

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