Digital defect: the number of disputes over online real estate transactions has increased in Russia

In five years, the share of contested digital transactions has almost doubled, analysts told Izvestia. In 2025, every fifth of them was already in doubt. The main reasons include bankruptcy and creditor protection, violations of the law and formal errors, fraud, disputes over the rights of third parties, as well as issues of legal capacity and the will of the parties. About why digital transactions are increasingly becoming the subject of controversy and which formats are considered the most secure, see the Izvestia article.

Which deals are being contested

In Russia, more and more transactions with secondary housing are carried out through online platforms: in 2020-2024, their share has increased fourfold, the Analytical research center told Izvestia. Business. The right." The growth of digital transactions is accompanied by an increase in the number of disputes around them, and their share in the total number of disputes is also growing.

From 2020 to 2025, 3.6 thousand cases related to digital platforms were recorded. In 2020, the share of cases that passed through specialized online services was 13.09% of the total number of disputed transactions with secondary real estate. In 2023 - 13.29%, in 2024 — 18.72%, and in 2025 — 22.38%. That is, every fifth contested housing transaction in 2025 went through digital platforms.

Inspections of banks and online services reduce some of the risks, but they cannot replace a full-fledged legal expertise. Digital platforms are increasingly appearing not as a place where attackers committed gross forgery, but as the infrastructure of a transaction: it follows a formally correct digital path, but then becomes the subject of dispute due to unscrupulous participants, misunderstandings on the part of the seller or hidden pressure, problems with the property and abuse by representatives, experts emphasize.

Transactions are disputed due to bankruptcies and creditors' claims, procedural violations and formal errors, fraud, conflicts with the rights of third parties, as well as doubts about the legal capacity and voluntary decisions of the participants.

"Most often, the reason is that the digital environment ensures the external order of the procedure, but does not allow us to exclude scenarios when the real will and motives of the seller are distorted, the object has legal flaws or the parties cannot agree on the fate of the deposit or advance. In addition, digital platforms cannot clearly identify the parties to the agreement or verify their credentials. This model allows for secure calculations, but does not adequately protect against social engineering and other risks," the study says.

According to experts, notary transactions are better protected. As noted by the director of the center "Analytics. Business. Right" by Venera Shaidullina, they are the least contested: from 2020 to 2025, they accounted for an average of 8.02% of all disputes, and this figure has hardly changed from year to year. The work of notaries primarily involves transactions with a more complex legal structure, but such cases are less likely to lead to legal disputes.

"The notary certifying the transaction conducts a comprehensive legal examination, makes sure of the legality and helps protect the rights of all participants," added Susana Kirakosyan, Chairman of the CCI Subcommittee on Business Development in the field of residential real estate management. The expert explained that the notary finds out whether it is possible to legally sell the object: who is the owner, whether there are restrictions and encumbrances, as well as all necessary consents.

Types of online transactions

There are several types of real estate transactions. One of them is a simple written form without professional support. In this case, the parties themselves prepare and verify the documents, formulate the terms of the contract, agree on calculations, submit registration documents and assume the main risks — from legal errors to inaccuracies in registration.

Another option is a simple written form with legal or service support from an intermediary: a real estate agency, realtor, lawyer, or other service company that helps conduct the operation outside of its own digital platform, the analysts explained. Such a transaction is made without notarization, but some of the functions are transferred to a third party under the contract.

Digital platforms are also available, including using partner networks. They offer connected banking, insurance, and legal services.

"This model assumes that a significant part of the client's route is transferred to the digital environment: object search, preliminary selection of a counterparty, collection and exchange of documents, remote communication, ordering additional services, electronic filing of documents, arranging settlements through partner services and connecting related performers," the experts added.

Notarial support is also possible, as well as an option in which individual functions are distributed between a digital platform, an intermediary, a bank and a notary.

Why are there disputes?

According to Valery Tumin, Director of Russian and CIS Markets at Pham Properties, the dynamics of contesting transactions amid the digitalization of the real estate market looks alarming, but understandable.

"Formal automation is not a substitute for legal depth and human risk assessment," he said.

The digital environment provides a convenient route and secure settlements, but does not protect against pressure, deception or misunderstanding of the essence of the transaction, the expert noted. It is not uncommon for a seller to act under the influence of social engineering or not realize the consequences of signing documents in electronic form.

— In such cases, the challenge is based precisely on the fact that the will was distorted, and the digital footprint does not record the motives and the real state of the participant, — said Valery Tumin. — In addition, even with automatic checks, there are risks that algorithms do not cover.: hidden heirs, unaccounted-for rights of third parties, disputed powers of attorney, violations of the rights of spouses, nuances of privatization. Digital services are often limited to formal criteria, whereas a full-fledged examination requires an analysis of the history of the transfer of rights and judicial practice to the address.

According to experts, the increase in online transaction disputes is a signal that automation should be complemented by expertise, not replaced by it. The optimal model is a mixed one: digital tools provide speed and convenience, and legal support provides professional verification, ideally with notarization.

For the consumer, the main principle is simple: the more complicated the transaction and the more expensive the object, the more important it is not to skimp on checking and protecting legal guarantees.