Official: notaries will protect citizens who borrow money from friends as collateral for housing

The Government Commission on Legislative Activities approved the initiative, which, according to experts, will protect citizens who decide to borrow money from someone as collateral for housing. “Someone” is not the banks. As RG’s interlocutors emphasize, in practice, citizens often take money from other individuals, including “black lenders.”

The draft law provides that a mortgage agreement between individuals will have to be notarized. In this case, a mortgage agreement simply means a situation where someone borrows money from an individual and pledges an apartment as collateral.

As Vladimir Gruzdev, Chairman of the Board of the Russian Lawyers Association, explained to RG, appropriate changes are planned to be made to the law on state registration of real estate.

It is proposed to introduce a mandatory notarial form for mortgage agreements, where the creditor is an individual, including individual entrepreneurs, and the collateral is housing or a share in it. This will strengthen the protection of the citizen borrower by providing him with an additional guarantee in the form of a professional legal assessment of the transaction by a notarysaid the Chairman of the Board of the Ajur.

source: «Rossiyskaya Gazeta»

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