In the Republic of Belarus, real estate purchase transactions are among the most significant and complex civil law relations. Despite the thoroughness of legal regulation, disputes often arise in this area related to the fulfilment of contractual obligations, registration of property rights, and recognition of transactions as invalid. Understanding the main causes of such disputes and how to resolve them is important for real estate market participants.
Features of Buying and Selling Real Estate in Belarus
In Belarus, the Civil Code regulates real estate purchase transactions and requires mandatory notarization or state registration with the BRTI (a territorial organization for state real estate registration). A transaction registered by a notary still requires subsequent registration with the BRTI.
The process of buying and selling real estate includes several key stages:
- The conclusion of a contract.
- Checking the object.
- Registration of the transfer of ownership.
However, even if all the formalities are followed, disputes may arise, so it is important to consider the specifics of legislation and seek the help of real estate lawyers.
Notarization and Registration
After signing the contract, it must be registered in the territorial division of the BRTI. Without registration, the transaction is considered incomplete, and the new owner’s rights are unconfirmed.
Participation of Real Estate Companies in Real Estate Transactions
In Belarus, the activities of realtors are licensed, and they play an important role in supporting transactions on the seller’s part. They can also check the property for the buyer.
Companies help to check the legal “purity” of the facility, draw up a contract taking into account the interests of the parties, and avoid common mistakes leading to disputes. However, it is important to keep in mind that realtors are responsible only for intermediary services and not for the legal consequences of the transaction. Therefore, in difficult cases, it is better to consult a lawyer additionally.
Risks of Independent Transactions
Independent conclusion of a real estate purchase contract without the involvement of specialists increases the risks. For example, the buyer may not notice the encumbrances on the object (mortgage, arrest), and the seller may not make the calculation correctly, which will lead to financial claims in the future.
Thus, when buying or selling real estate in Belarus, it is recommended that buyers follow all the formalities and contact professionals to protect their interests.
The Main Causes of Disputes in the Field of Buying and Selling Real Estate
Disputes over real estate purchase contracts in Belarus are often associated with unfair fulfilment of contractual obligations, non-compliance of the object with the stated characteristics, problems with the registration of the transfer of ownership and financial disagreements.
1. Unfair fulfillment of contractual obligations
The seller or the buyer may not fulfil the terms of the contract, which leads to conflicts. For example, after signing the contract, the seller may refuse to transfer the object or demand additional payment, citing the increased market value. In such cases, it is important to contact a lawyer promptly, who will help collect the penalty or terminate the contract.
2. Non-compliance of the real estate object with the declared characteristics
Often, buyers face that the purchased object has hidden defects (for example, problems with the foundation or utilities). If the seller intentionally concealed such defects, the buyer has the right to demand a reduction in the price or cancellation of the transaction. Judicial practice shows that it is possible to prove the fact of false information with the help of construction expertise.
3. Problems with registration of transfer of ownership
State registration of real estate is mandatory, and its absence invalidates the transaction. Situations where the seller does not submit the registration documents or it turns out that an encumbrance has been imposed on the object (for example, arrest) are grounds for challenging the transaction. In such cases, acting promptly and consulting with a real estate lawyer is important.
4. Financial differences
Errors in calculations, non-fulfilment of payment obligations, and delays in transferring funds lead to conflicts. For example, if the buyer makes a deposit but refuses the transaction, the seller can keep the deposit for himself. However, if the amount was in advance, it is refundable. Proper registration of contractual terms with a lawyer will help to avoid such disputes.
Legal Aspects of Registration of Transfer of Ownership
In Belarus, registration of the transfer of ownership of real estate is mandatory and is regulated by the Civil Code, the Housing Code, and the Law “On State Registration of the Ownership Rights to Real Estate and Transactions Therewith.” Proper registration prevents legal disputes and protects the parties’ rights to the transaction.
The Procedure for State Registration of Contracts and Transfer of Rights
After signing the contract, the property becomes the buyer’s only after state registration with the BRTI. To do this, the parties submit the following documents:
- Certificate of ownership of the property from the seller.
- The document according to which the seller received a certificate of ownership (for example, a gift agreement, a purchase agreement, a certificate of inheritance).
- The statement of the settlement centre from the personal account of the apartment is about the persons living in it.
- Technical passport for the apartment.
- Passports of the participants in the transaction.
- If the property belongs to the joint joint ownership of the spouses, then the spouse’s consent to the sale is required.
- Consent is required to sell all adults who are registered in the apartment.
- When registering documents with a notary, you need an extract from the Unified State Register of Real Estate.
- A document confirming the payment of the state fee.
The registrar or notary checks whether the property is under pledge, arrest, and other encumbrances, as well as whether the government has banned the sale of apartments. If there are such prohibitions, the contract of sale and transfer of ownership will not be registered.
Registration usually takes one business day, which is considered an expedited registration procedure. The usual procedure for verifying a contract takes three business days. If it is necessary to request documents, the deadline may be extended within a month.
The State Fee for the Certification of the Contract
The state fee for certifying the contract of sale of real estate is 0.6 base value (based on the calculation that the base value is 42 rubles, this is 25.2 rubles). For close relatives, the state fee is 2 basic values—84 rubles. To certify the contract for other persons, the state fee is five basic units (210 rubles). An additional 0.4 basic amount (16.8 rubles) must be paid to expedite the certification.
Consequences of Late Registration for the Parties to the Transaction
If the buyer does not register the transaction on time, he cannot fully dispose of the property – sell, donate or use as collateral. In disputes, the court may invalidate the transaction, especially if the seller has managed to resell the property to another person.
Late registration also carries risks for the seller: if he has received payment but is formally the owner, he may face tax obligations or claims from third parties.
Risks Associated with Encumbrances
Before the registration is completed, the buyer cannot always check whether the property has been seized, banned or otherwise burdened. For example, the seller could use the object as collateral, and the bank has the right to recover it.
To avoid such situations, it is recommended that an extract from the Unified State Register be ordered before the transaction and that experienced lawyers be consulted.
Recognition of Real Estate Purchase and Sale Transactions as Invalid
In Belarus, real estate purchase and sale transactions can be declared invalid in court if they violate the norms of legislation or the rights of third parties. It entails serious consequences for the parties to the transaction, including the return of property, compensation for losses and legal liability.
Grounds for Invalidation of the Transaction
The Civil Code of the Republic of Belarus prescribes the grounds for recognizing a real estate purchase and sale transaction as invalid. These include:
- Non-compliance with the form of the transaction: if the contract is not concluded in writing or has not passed mandatory notarization and state registration.
- Incapacity of one of the parties: if the court recognizes the seller or buyer as incompetent or with limited legal capacity.
- Sale of property without the right to dispose of: for example, if the object was sold without the consent of all owners (with shared ownership) or the transaction was concluded by an unauthorized person.
- Encumbrances on real estate: if the property is under arrest, pledged, or sold bypassing creditors’ claims (for example, in case the seller is bankrupt).
- Fraud and abuse of law include, for example, the sale of real estate with the deliberate concealment of significant deficiencies, forged documents, or the double sale of one property to different buyers.
Consequences of Invalidation of the Transaction
Invalidation of the transaction entails serious legal and financial consequences for both parties. The basic principle is the return of the parties to their original position: the property is returned to the seller, and the money is returned to the buyer. However, in practice, this is not always possible, which leads to additional risks.
The Return of Real Estate
If the transaction is declared invalid, the property must be returned to the seller. However, the process becomes more complicated if the property has already been resold to a third party. In such cases, the court may order the guilty party to pay compensation.
Financial Losses
The buyer has the right to demand a refund of the funds paid, but if the seller has already spent the money or is in bankruptcy, the buyer will have to seek a refund through the court.
Additional Expenses
The parties may incur losses due to taxes, duties, commissions paid by realtors and repair costs. These costs may be recovered through the courts.
Legal Responsibility
If the transaction was declared invalid due to fraud or concealment of information, the perpetrator may be held civil or even criminal liability.
To avoid such consequences, it is important to carefully check all aspects of the transaction and consult with lawyers.
Recommendations for Dispute Prevention
Real estate transactions require careful consideration, as mistakes or unfair actions can have serious legal and financial consequences. To prevent disputes, it is important to inspect the facility carefully, register the transfer of ownership in a timely manner, and involve professionals. Here are some recommendations we can give to the participants in the real estate purchase and sale transaction.
The Need for a Thorough Check of the Legal “Purity” of the Real Estate
Before signing a real estate purchase contract, ensuring the property has no legal encumbrances is important. To do this,
- Request an extract from the Unified State Register of Real Estate, rights to it, and transactions with it.
- Check for arrests, bail, and other restrictions.
- Ensure that the seller is the rightful owner and his rights are indisputable (for example, the property is not involved in litigation).
- Check whether any persons retain the right to use the property and whether they have agreed to the sale.
Acquiring real estate without due diligence can lead to litigation and even loss of ownership.
The Importance of Timely and Correct State Registration of the Transfer of Ownership
Even if a real estate purchase contract is concluded and signed, ownership passes to the buyer only after state registration. If the registration process is delayed, risks such as a double sale of the property or claims from third parties may arise.
Late registration may also lead to difficulties with taxation and the inability to dispose of the property further (for example, by selling it or transferring it as collateral). Therefore, it is important to apply for registration without delay.
The Role of Professional Market Participants (realtors, lawyers) in Transactions
Real estate companies and lawyers help to avoid mistakes and minimize risks. Realtors conduct an initial inspection of the facility, and lawyers analyze the contract, assess the risks and represent the client’s interests in case of disputes.
Contacting professionals is especially important in difficult cases, such as when buying real estate in new buildings, sharing ownership, or transactions with legal entities. Their help can prevent many problems and protect the interests of the parties.
Conclusion
Real estate purchase and sale transactions in Belarus require a careful approach and compliance with all legal formalities. The main causes of disputes are unfair fulfillment of obligations, non–compliance of the object with the stated characteristics, problems with registration, and financial disagreements. Late or incorrect registration of the transfer of ownership can lead to cancellation of the transaction, financial losses, and litigation.
To avoid possible conflicts, it is important to check the legal “purity” of the object in advance, consider the presence of encumbrances, register the transfer of ownership in a timely manner, and make financial calculations correctly. Also, do not neglect the help of professional realtors and lawyers, who will help you conduct the transaction safely and legally.
If there are disputes or suspicions of a violation of your rights, it is important to seek legal advice promptly. Proper transaction support and compliance with all legal requirements are the keys to a successful and safe real estate purchase.
Contact us
If you have any questions related to real estate purchase and sale transactions in Belarus, we will be happy to help! Our long-term experience will help you choose a lawyer, to conduct the transaction safely and legally.
- +37529142-27-19 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
