Media & Resources
The RF Supreme Court clarified status of good faith purchasers in residential premises transactions.
DATE: October 27, 2014 | AUTHOR: atlawyers
On October 01, 2014 the Presidium of the RF Supreme Court adopted Court practice review related to recovery of residential premises from good faith purchasers by state and local government authorities (hereinafter – the “Review”).
To defend from the recovery claim filed by the owner of the premises a purchaser under a void transaction needs to prove his good faith status by complying with so-called “standard of average reasonable and prudent behavior”.
Key factors that should be considered by courts resolving the issue of good faith of the residential premises purchaser are as follows:
- the purchaser should have reviewed the relevant record in the Unified State Register of rights to immovable property and transactions therewith;
- the purchaser should have inspected the residential premises prior to the purchase;
- the purchaser should have examined all documents of title to the real property, as well as documents relevant to acquisition of title to the property by the seller.
Therefore, if an individual wants to be able to defend against such claim as a good faith purchaser, he should analyze all documents related to the ownership title on real property.