The Supreme Court of Russia has limited the ability of home sellers to annul real estate transactions in court and to reclaim apartments even from good-faith buyers.
According to a new judicial practice guide, the mere assertion of the seller that he was misled or manipulated by fraudsters is no longer sufficient for the cancellation of the sales-purchase contract.
The judges will have to analyze the buyer’s behavior as well, including whether or not they could realize that the seller was acting under the influence of a deception.
The Supreme Court emphasizes that both parties of the transaction must benefit from the same legal protection. If a contract is declared null, each party will be obliged to return what they received as a result of the transaction.
The decision aims to unify judicial practice in disputes concerning property rights over dwellings and limits the use in court of the so-called “Dolina scheme”, through which sellers tried to recover properties after the completion of transactions.