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«    June 2017    »

Revolution in realty: nobody believed but they did it

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Revolution in realty: nobody believed but they did it

Can you imagine that now to register real property business one should not go to the Federal Service for State Registration, Cadastre and Cartography (Rosreestr) department. It may be done at home. Do you not believe it? Check it yourselves.

The most interesting and important topic of the recent All-Russia industrial conference titled “Real property: legal regulation transformation” were the new conditions and opportunities for realty business registration. And these changes seem really revolutionary.


Quickly and efficiently 

For quite a long period citizens and business complained about the procedure of real property registration.  The process was long, cumbersome, took a lot of time and often money, as it used to be one of the most corruptogenic.  And for many years the system did not change.  

— In fact, many things could have been changed very quickly, — the former Head of Rosreestr, Igor Vassiliev, (on the day of the conference he was appointed Governor of the Kirov region). – We listened to businessmen, determined the problem and then solved it.

He reminded, that real property registration sphere had always been one of the most conservative, so it needed revolutionary changes. Introduction of electronic services allowed to alter the system qualitatively, to automate the process. 

Though the work was started a year ago, a lot has been done for a short period of time. Thus, during the first half of 2016, 2 136 electronic applications were drawn up, 5-fold as compared with the whole 2015. What does it speak about? The popularity of the resource and the number of its users are growing.    

Motivation is never too much

When a year ago the reasons for the registration’s switching over to the electronic format were discussed, the advantages and stimuli were analyzed, said Deputy Head of Rosreestr, Maxim Smirnov.   

— We divided the motivation into two parts then, he added. – For Rosreestr and for its services’ consumers.

What does Rosreestr gain? The quality of the organization’s services rise, the stuff decreases by 15—20%, and functions fulfillment expenditures go down. 


What do customers gain? There is no direct contact with officials, exterritorial applications (they may be sent from any point of the world), no queues, registration terms decrease, state duty is lower.

At present the number of electronic applications is 140,000, and by the end of the year they will have achieved 820,000, Maxim Smirnov forecasts.

All Rosreestr’s most demanded services are available in e-format: registration of rights, cadastral registration, furnishing information from the Unified State Register of the Real Estate Property, from the State Real Estate Cadastre.  More than 64% of such Rosreestr’s services were fulfilled in e-format in the first half of 2016.  

There are several issues demanding quick solutions. Firstly, to make the process of getting electronic signs available and to provide for 100% security of individual data. For this, a special center was open affiliate to the Rosreestr’s cadastral chamber.  

However, the main obstacle for the quicker implementation of e-document flow is people’s psychology, as they are used to paper documents. And changing conscience is not a revolutionary way, but the way of evolution. Nevertheless such transition occurs all over the world, and too quickly for the process of evolution.  


State services became unlimited

We are accustomed that our officials’ reports on their great victories are quite different from real state of things. That’s why it is useful to listen to the business’s opinion how it works and how efficient the new model of real property registration is.  

For example, as Deputy CEO of the “Etalon-Invest” company, Andrei Erekhinsky, the company has registered real property business in e-format for a year already. The software was bought for only 20,000 roubles, all agreements with customers are also documented differently. A center having the right to provide people with e-seals was created in the company.  So, all necessary registrations may be done in the office.

The package documenting takes 7—8 minutes, and the registration itself lasts for 5 working days.

1,200 agreements have been registered for the period of the new format’s work. The stuff labour efficiency has grown sharply: in the course of a working day one officer may prepare 100 document packages for registration.

Another advantage of the system is that it helps track the documents passing the Rosreestr’s system on-line.

Formerly, it was hard for a company to receive as many state services as they neede, Mr Erekhinsky reminds, but now there are no problems. The customers who do not trust e-format may apply to a notary officer and duplicate all documents in paper.

What may Rosreestr be advised from the business’s standpoint? If they develop standard agreements, it will make the registration procedure even simpler and shorter, as there will be no need to carry out legal examination of each document.  

…Well, a revolution seems to have taken place in Russia – though in a very narrow segment: real property registration. It’s all to the good. If there are useful revolutions in the world, this is the one as Rosreestr accomplished.  


Vladimir GURVICH

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