Text b: becoming moscow home owner

expatriate – эмигрант; изгнанник

CIS – Commonwealth of Independent States – СНГ

citizen – гражданин

foreigner – иностранец

meanwhile – тем временем; между тем

to take over a barrel – застать кого-л. врасплох

restriction – ограничение

ownership – собственность; владение

to face smth – сталкиваться (с необходимостью); наталкиваться (на трудности и т.п.)

domicile – постоянное местожительство

to obtain – получать; приобретать

temporary – временный

to prolong – продлевать

regardless of – независимо от; не принимая во внимание

nevertheless – однако; хотя

additional – дополнительный

residence – местожительство

to provoke – вызывать

to challenge –оспаривать; подвергать сомнению

insurance – страхование

title –право на имущество

lawsuit – судебный процесс; иск

claim – претензия; иск

to arise from – являться результатом; возникать

peculiarity – специфичность; особенность

counterpart – аналог; эквивалент

in terms of – с точки зрения; в смысле; в отношении; в том, что касается

validation – срок действия; юридическая (законная) сила

to notarize – засвидетельствовать нотариально

unlike – в отличие от

transaction – сделка; операция

preliminary – предварительный

to sign – подписывать

deposit – задаток

rental – сумма арендной платы

to identify – определять; называть, указывать

otherwise – или же; в противном случае

to withdraw – забирать, брать назад

escrow account – условно депонированный счет у третьего лица на чье-л. имя

to get cornered – попасть в затруднительное положение; быть загнанным в угол

obliged – обязанный, вынужденный

to reject – отвергать, отклонять

to opt – делать выбор, предпочитать

After a period of con­tinuous renting, expatriates from CIS and Western coun­tries who have long-term contracts in Russia often buy flats in the Russian capital — to live and invest money in. The whole process of apartment buying for a Russian citizen is no different for a foreigner.

Meanwhile, realtors say that apartment buying in Russia dif­fers from the similar process abroad and these distinctive fea­tures often take foreigners over a barrel.

Restrictions on foreign owner­ship of Russian apartments exist only in frontier regions of the state. So, expatriates can buy any flat in any part of Moscow. The only restrictions they may face are those concerning the domicile registration.

Although foreigners can buy an apartment, a house or a part of a house in Moscow, non-Russian citizens can not obtain the so-called “permanent registration” or propiska, even if they live in their own property. The permanent registration is meant for Russian citizens only; foreigners receive temporary registration that can be prolonged.

When it comes to property own­ership, foreigners have the same rights as the Russians. The owner can sell or rent an apart­ment, regardless of whether his domicile registration is perma­nent or temporary.

Nevertheless, additional prop­erty rights of Russian citizens, such as residence registration, can cause problems for new prop­erty owners. According to the Russian law, a person who has permanent residence registration in an apartment may have the right to occupy the property without actually owning it. In some cases this form of social protection provokes situations when new owners are challenged by people who were formally reg­istered in the apartment many years ago. The necessity for care­ful research of the property histo­ry is essentially important. And here we come to the important subject of property insurance in Moscow. Title insurance protect­ing the owner of real estate from lawsuits or claims arising from a defective title has its peculiarities in Russia.

Russian title insurance differs from its western counterpart mainly in terms of the validation period. In Russia, the title insur­ance agreement is usually con­cluded for 1-3 years, then the title is checked again and the agreement can be prolonged. If we consider the same deal in the USA, the title is usual­ly checked once and the insur­ance agreement is valid for the entire period of ownership.

A residence permit is not neces­sary to an expatriate who is not planning to live in Russia for his whole life but is only determined to buy a Moscow apartment. As for other papers, a passport with its notarized translation into Russian is enough to buy a flat.

Unlike in the western countries, the majority of home purchasing transactions in Russia are made in cash. Usually a preliminary agreement between the buyer and the seller is concluded in a real estate agency. Upon the signing of a prelimi­nary agreement, the buyer pays the seller a deposit to take the property off the market and prepare the necessary docu­ments. Then they choose a bank and conclude an agree­ment covering the rental of a safe deposit box. The payment for the apartment is put in the safe deposit box, and the parties sign their sales contract which should be registered by the state.

Upon regis­tration the seller or his represen­tative can receive a property rights certificate where the buyer is identified as the owner of the property. The seller should bring the property rights certificate to the bank by the time indicated in the contract and then receive his money for the apartment. Otherwise, the buyer may with­draw his deposited money from the bank safe box. So, the bank guarantees that the funds are not moved until all the requirements of the buyer and the seller have been fulfilled. The safe deposit box in Russia is similar to the escrow account used in western real estate transactions.

Nevertheless, in some respects, the buyer can still get cornered. In many countries if the seller accepts an offer in writing, he or she is obliged to sell the property to this very buyer. In Russia things are different: the buyer who made a deposit can be rejected and get his money back in case the seller changes his mind, opting for a more profitable deal.

Ex.1 Give Russian equivalents:

a period of continuous renting; these distinctive features take foreigners over a barrel; any flat in any part of the capital; the only restrictions; when it comes to property ownership; to have the same rights; without actually owning the property; mainly; the title insurance agreement; to be valid for the entire period of ownership; as for other papers; in cash; the parties sign their sales contract; to receive a property rights certificate; until all the requirements have been fulfilled; in some respects; opting for a more profitable deal.

Ex.2 Give English equivalents:

долговременные контракты; аналогичная процедура за границей; отличительные черты; пограничные регионы государства; получить постоянную прописку; временная прописка; вызвать проблемы для новых владельцев; согласно Российскому законодательству; страхование права на имущество; продлить договор; вид на жительство; большинство сделок по покупке жилья; заплатить задаток; плата за аренду в банке сейфа (для хранения ценностей); ко времени, указанном в контракте; передумать.

Ex. 3 Answer the following questions:

1. Why do expatriates from CIS and Western countries buy flats in the Russian capital?

2. Are there any restrictions on foreign ownership of Moscow apartments?

3. What registration do foreigners receive in Moscow?

4. Do foreigners and the Russians have the same property rights? What is the difference between them?

5. Are there any peculiarities concerning the Russian title insurance? What are they?

6. What documents are necessary for a foreigner to buy a flat?

7. Who signs a preliminary agreement?

8. Where does the buyer put the payment for the apartment?

9. When can the seller receive a property rights certificate?

10. What does the bank guarantee?

11. Why can the foreign buyer still get cornered in some respects?