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Mortgage law in Moscow, Russia operates in conjunction with real estate law and dictates the lending and borrowing practices concerning property. In Moscow, as elsewhere in Russia, the law mandates that a mortgage agreement must be notarized and registered before it is officially recognized. Borrowers can choose between fixed or variable interest rates, with repayment periods typically ranging from 10 to 30 years. Defaulting on a mortgage payment can result in legal action and, in the worst-case scenario, foreclosure and resale of the property by the lender.
Engaging an experienced lawyer is generally advisable when dealing with mortgage matters, especially if you're unfamiliar with the complexities of Russian law. A lawyer can assist you in reading and interpreting the mortgage agreement, ensuring the protection of your interests, negotiating better terms, and managing default or foreclosure situations. If you are a foreigner looking to take a mortgage for property in Moscow, a lawyer can guide you through the regulations that apply to foreigners buying real estate in Russia.
In Moscow, mortgages are governed by the Civil Code and the Law on Mortgages (Pledge of Real Estate) of the Russian Federation. Importantly, the mortgage agreement must be both notarized and registered with the Unified State Register of Rights to Real Estate and Transactions (USRRRE). Default rules in Russia allow the lender to file for immediate foreclosure if a borrower misses even a single mortgage payment. Another important aspect is that, under Russian law, certain properties cannot be mortgaged, including properties not registered in the cadastral register, properties in dangerous status, and premises in a residential building not recognized as suitable for living.
Yes, foreigners can apply for a mortgage in Russia. However, the process can be complicated, with additional documentation required, and it is usually easier for those who have residency in the country.
If you default, the lender has the right to commence conditions for foreclosure almost immediately. They may also sue for the remaining debt if the foreclosure sale does not cover the entire mortgage amount.
In most cases, terms of a mortgage may be subject to negotiation. A competent lawyer can assist you in this process.
Yes, interest paid on a mortgage can be deducted from your income tax, up to a certain limit. You should consult with a tax professional for further details.
Yes, as a borrower, you maintain your possessory rights and can use your property as long as you are not in violation of the terms of your agreement.
You may consider visiting the official websites of the Central Bank of Russia, the USRRRE or professional law networks in Russia, such as Pravo and Rossiyskaya Gazeta which can be helpful for further research and information. International organizations such as the International Bar Association (IBA) or the Russian Arbitration Association also provide legal resources in English.
If you find yourself in need of legal assistance in mortgage affairs, the first step is to seek professional legal advice. Look for law firms with a strong track record in mortgage and real estate law in Moscow. It may also be worthwhile to get support from a financial advisor to understand the financial implications of a mortgage agreement. If you are a foreigner, ensuring your documents are in order is crucial. Apart from your passport and visa, you may also have to present a residency permit and tax ID, among other documents.
