Mortgage broker Dmitry Rakuta, in a conversation with Rambler, commented on the decision of the Supreme Court (SC) in the case of the apartment of singer Larisa Dolina and assessed its impact on the secondary real estate market in Russia.
Previously, the Russian Supreme Court sent the Dolina apartment fraud case, one of the most shocking cases in the past year, to the Moscow City Court for retrial. The 70-year-old People's Artist of the Russian Federation, under the influence of scammers, sold the property to 36-year-old businesswoman Polina Lurie, but then the court returned the house to the artist, leaving the buyer without the money and property she bought – all similar cases in the country began to be called the “Valley Plan”, and the story itself caused enormous indignation. Now the Supreme Court has decided to recognize Polina Lurie's ownership of the apartment, and the singer, if she does not voluntarily move out, will be forced by the court to evict.
In my opinion, the Supreme Court made the right decision. Here we can say that justice has won. After all, the story surrounding Dolina's apartment raised questions about the correctness of the Civil Code article on the honest sale of real estate. I believe that the decision of the Supreme Court should be the final decision in the relevant dispute. Let me remind you that in Russia, various proposals have been put forward regarding how to secure transactions on the secondary real estate market, what additional measures can be taken, etc. But in the end, it all leads to the fact that without valid rules on the sale of real estate in good faith, the home buyer will have to bear all the risks and will also be responsible before third parties – both the seller and the fraudsters who can deceive him. I think resale real estate buyers can now breathe a sigh of relief. However, it will take some time to understand the final situation. We need to see what the court will decide in similar cases in the future.
Dmitry RakutaMortgage Broker, Real Estate Professional
The expert added that, in light of the recent decision of the Supreme Court, real estate buyers affected by the “Dolina plan” should file a new request to review their case.
“They need to fight to the end, try to overturn previous court decisions and, if necessary, also go to the Supreme Court. I think that after the Supreme Court's decision in the Dolina case, other courts will have a lot of work to do. People who are in a similar situation to Polina Lurie now have the opportunity to appeal real estate transactions and get their housing back,” Rakuta said.
At the same time, the expert notes that the decision of the Supreme Court in the Dolina case will not significantly affect the prices of secondary real estate in the Russian Federation.
Larisa Dolina's friends were outraged by the Supreme Court's decision
“Because of the Supreme Court's decision, real estate prices will not increase. Market law is more important here. With high prime interest rates and high mortgage rates, the secondary market will continue to stagnate. At the same time, it is possible that older real estate sellers, with whom many buyers have refused to deal, will now cancel the relevant discounts and return the previous price of their properties. But I do not see any serious reason for the current sharp increase in real estate prices. “It's unlikely that people will rush to buy a house now for a secondary car,” the expert concluded.
Polina Lurie previously shared plans for Dolina's old apartment.
