Buying a secondary property is not only one of the main investments in life, but also a high—risk area. Every second or third story about lost money and lost rights begins with a trusting transfer of money to a stranger, a hastily signed contract, or a lack of careful document verification. This material is a practical and proven set of actions that minimizes risks and helps to complete the transaction calmly, with legal and financial protection.
The secondary real estate market is attractive: housing has already been commissioned, neighbors are time-tested, and you can often bargain. But it is here that fraudsters use familiar and sophisticated schemes: forgery of powers of attorney, concealment of encumbrances, "double" sales and fake extracts from registers. Government agencies and notaries have done a lot to increase transparency, but the key protection is your vigilance and a well—designed algorithm of actions when making a purchase.
Key points
1) Initial checks — what to request from the seller first
- Seller's passport (check the series, number, date and place of issue). Match the name with what is indicated in the extract from the registry of rights.
- A certificate of title or an extract from the state register of property rights (in Russia, an extract from the Unified State Register of Legal Entities). Ask for an original/fresh statement (no older than 5-30 days, depending on practice).
- Documents confirming the origin of the right: purchase and sale agreement, donation, inheritance certificate, court decision, etc.
- Certificate of absence of arrears in utility bills (recommended) and information about registered tenants.
- The consent of the spouse to the transaction or prenuptial agreement, if applicable.
The practical wording of the request to the seller (example):
"I ask you to provide: a passport of a citizen of the Russian Federation, an extract from the Unified State Register of Legal Entities on the rights to the object (with notes on encumbrances), a copy of the apartment purchase agreement, information on the presence of registered persons and statements on utility bills for the last 12 months."
2) Verification of title documents and registers
- Be sure to get an official extract from the state register of rights (EGRN/land registry in other countries). This is the main document that shows who is registered as the owner, whether there are encumbrances (mortgages, arrests, lease rights) and the history of transactions.
- Check the passport data of the owner with the statement: full name, date of birth, series and number of the document issued by whom.
- Check for restrictions: injunctions, arrests, mortgages. Any encumbrance requires detailed clarification and, possibly, repayment before the transaction.
3) Notary, lawyer and escrow — where to keep money
- Notarization of key points of a transaction is the basic protection in most countries. The notary will check the signatures, provide legal explanations and, in some situations, act as a guarantor of the purity of the transaction.
- Escrow account (a special conditional account with a bank or notary): the buyer's money is credited to him and transferred to the seller only after registration of the transfer of rights. This is the best way to secure payments.
- Avoid hand-to-hand transfers and cash payments outside of official documents. Ask for bank confirmations of payments and the purpose of the payment, clearly indicating the subject of the transaction.
4) Typical Fraud schemes — what to look at
- "Double" sale: the apartment is sold simultaneously to several persons. The sign is pressure from the seller to transfer funds quickly.
- Fake power of attorney: The seller presents a power of attorney from the owner, which is easy to forge. The solution is to contact the notary who issued the power of attorney, check the original and verify the series.
- Concealment of encumbrances: the seller does not report the pledge or arrest. The solution is a fresh extract from the register of rights.
- Document substitution: forgery of a signature in a contract or replacement of pages. The solution is to work with a notary public and have the original documents.
5) Purchase and sale agreement — key points of protection
- The condition for the transfer of money through escrow and the condition that the transfer of keys and ownership rights occur after state registration.
- Warranty obligations of the seller: absence of debts, encumbrances and claims of third parties on the date of signing.
- Penalties in case of violation of the deadlines for the transfer of documents / registration.
- The clause on liability for the inaccuracy of the information provided and compensation for damages.
An example of the wording for the contract:
"The seller guarantees the absence of registered and unregistered encumbrances, liens, arrests and claims of third parties at the time of signing the contract. In case of detection of such encumbrances, the seller undertakes to eliminate the encumbrances within 30 days and compensate the buyer for all losses, including the cost of forced retention of property."
Expert opinions
Real estate lawyers and notaries are unanimous: the main security tools are official registries, notarial verification and storage of funds in an escrow account. Practitioners note that emotional haste is a frequent factor used by scammers: an enticingly low price, time pressure, and offers of a "unique" deal.
Quotation in meaning (consolidated opinion of relevant experts):
"The most reliable scenario is a check of the law in the registry, a legal examination of documents and settlements through a conditional account. Without this, the risk of losing funds and the right to housing increases significantly."
Elements of Human Interest — Stories and lessons
The real story (generalized illustration). A young family found an apartment at a price below the market. The seller insisted on a quick transfer "for reservations." The family transferred a significant amount to a private bank card. A week later, it turned out that the seller had no right to dispose of the apartment — the owner was in another city and did not sign any documents. The money could not be returned. Lesson: require escrow, check the owner in the registry and do not pay for personal details.
Another scenario: a transaction through a trusted person. The buyer trusted the seller's representative with a power of attorney. The power of attorney turned out to be fake. The notary who was supposed to certify the operation helped to identify the forgery — and the transaction stopped in time. Lesson: Check power of attorney and use notary public as a filter.
Balance of perspectives: when is it worth buying urgently
Sometimes circumstances require a quick purchase — moving for work, a complete family, a unique price. In such cases, minimize the risks: request an escrow, work through trusted agents and a notary, draw up a preliminary agreement with interim measures (a certified deposit, fines for refusal).
Step-by-step checklist before signing
1. Request and receive a fresh (no older than 10-30 days) extract from the register of rights.
2. Check the details of the seller's passport with the information in the statement.
3. Check if there are any registered restrictions, arrests, or bail.
4. If the transaction is through a proxy, check the original power of attorney with a notary.
5. Connect a lawyer/notary for the legal examination of the draft agreement.
6. Make payments through an escrow account or a notary deposit.
7. Include seller's guarantees and penalties for hiding encumbrances in the contract.
8. After signing, register the transfer of the right as soon as possible and keep the documents in the original.
What to do if something went wrong
- Contact a notary public and a lawyer immediately; record the loss or fraud.
- File a police report on fraud when making a real estate transaction; save all payment confirmations and correspondence.
- Inform the bank about possible fraud and initiate a chargeback request for card transfers, if applicable.
- If there is a reason, request the cancellation of registration through the court; sometimes this requires urgent intervention to prevent further re—registration.
Additional safety tips
- Do not publish the transfer confirmation and transaction details in open sources before registration.
- Cooperate only with trusted agencies and notaries: request a license, reviews, and transaction history.
- If the seller is not ready to provide documents or offers to "work by word of mouth", this is a sign of high risk.
Conclusion
Buying a secondary property can be safe if you act systematically: check the law in official registers, do not pay cash openly, use a notary and escrow, and prescribe clear guarantees in the contract. Scammers act quickly and purposefully, and your protection is time, attention to detail, and professional tools. Make a checklist, connect a lawyer and do not succumb to the pressure of an "urgent" transaction. Healthy skepticism and official procedures save tens of millions of rubles annually — and, more importantly, your peaceful life in a new home.
Keywords: purchase of secondary real estate, how not to become a victim of fraudsters, apartment check, USRN statement, escrow, notary, transaction security
