[BUYING AND SELLING REAL ESTATE IN RUSSIA]
203
▪ act on ranging of a land plot within particular category of land; ▪ land management file/demarcation plan;
building or construction is located, and which is required for their use. If a seller has a title to a land plot where real estate being sold under the SPA is located and which is required for its use, the purchaser acquires a title to such land plot unless otherwise provided by the law. 3. Due Diligence Within the due diligence procedure, the following legal risks are subject to examination, based on the following documents: − Legal risks in respect of parties’ powers to make transactions:
▪
expert
findings
and
competent
authorities’ reports; − Legal risks in respect of existing encumbrances:
▪ lease (with a term of more than a year);
▪
mortgage;
▪
easement;
▪
attachment;
▪
constituent documents;
▪
pending court proceeding;
▪
registration certificates;
▪
preservation order.
▪
powers to sign the SPA;
4. Warranties The party provided untrue warranties on circumstances significant for conclusion of the SPA, its performance or termination (including in respect of subject matter of the SPA, powers to conclude the SPA, compliance of the SPA with the applicable law, existence of necessary licenses and permits, its financial condition or in respect of third party) shall compensate to the other party on its request damages resulted from the untruthfulness of warranties or pay a penalty provided by the SPA. The party relying on untrue warranties also has a right to unilaterally terminate the SPA unless otherwise provided for in the latter. Typical warranties in respect of real estate are the following: − the seller is the registered sole owner of the real estate item; − the real estate item does not have any encumbrances;
▪ necessary approvals, permits and consents; − Legal risks in respect of title to real estate item: ▪ certificate of state registration of title. Since July 15, 2016, the issuance of certificates of state registration of title has been discontinued. Currently, the state registration of title and transfer of title is certified by another document - an extract from the Register;
▪
extract from the Register;
▪ documents of title (for example, SPA); − Legal risks in respect of prior owners: ▪ documents - grounds for acquisition of titles by all prior owners; − Legal risks in respect of compliance of real estate item with the purchaser’s requirements:
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook - professional solution for displaying marketing and sales documents online