In Russia, a law on the seizure of real estate has been launched. Who will he touch?

CrimeaPRESS reports:

In March 2023, notes RBC Real Estate, a law came into force introducing two additional criteria for depriving owners of rights to real estate in court without providing another dwelling. According to the innovation, now a house or apartment can be taken away for mismanagement or misuse, as well as if it violates the interests of neighbors.

Lawyers told who and for what can seize property under the new law.

What violations are we talking about?

These novels are an established judicial practice, so they should have been introduced into the law long ago, say lawyers interviewed by the editors of RBC Real Estate. However, the right to confiscate property for mismanagement or misuse of property was granted by the legislator for the first time.

First of all, we are talking about the use of space for other than its intended purpose, which leads to a systematic violation of the rights and interests of neighbors, says Galina Guzaeva, lawyer at the Okunev, Okuneva and Partners bureau. The intended purpose means that, for example, an apartment is intended for citizens to live, and a garage is for accommodating vehicles. It is forbidden to convert them into an office or dark kitchen (a room where food is prepared for delivery).

The right of ownership, although it is an absolute right in rem, has limitations.

Exercising our right, we cannot affect the rights and legitimate interests of others, violate their rights or prevent their use. The new mechanism will allow authorized bodies to seize property through the court, — notes Galina Guzaeva.

The new law also spells out measures relating to mismanagement of real estate and, as a result, leading to its destruction, Galina Guzaeva specified. According to her, this may include the inaction of the owner, who does not fulfill the obligations to repair and maintain the premises, or damage to property, in particular, the destruction of engineering networks and equipment. This can also include unauthorized redevelopment and reorganization that pose a threat to a residential building.

When will property be taken?

First, state authorities have the right to issue a warning to the owner for violations.

If the owner of the real estate, after a warning, continues to violate the rights and interests of neighbors, use the premises for other purposes, or without good reason does not make the necessary repairs, the court may decide to sell such premises at public auction. The owner will be paid the proceeds from the sale of the property minus the costs of enforcing the judgment— says Vasily Malinin, partner at the law firm Rustam Kurmaev and Partners.

Thus, the owner will be compensated for the proceeds from the sale of his property at the auction, minus the costs of the sale, Galina Guzaeva specified.

source: RBC Real Estate