Mortgages between individuals will be required to be notarized

The Government of the Russian Federation has approved a bill obliging individuals to notarize mortgage contracts for housing. The decision was made at a cabinet meeting. As reported on the website of the Ministry of Finance, the document was developed as part of measures to "whitewash" certain sectors of the economy. The initiative is designed to protect citizens from illegal lenders who issue loans secured by residential real estate. Mandatory notarization will be required for contracts, the subject of which is a dwelling or a share in the right of common ownership to it. The requirement will apply to transactions between ordinary citizens, as well as with the participation of individual entrepreneurs. The notarized form of the transaction ensures that the parties are informed of their rights and consequences, that the agreement complies with the law and the true intentions of the parties, as well as that the parties' legal capacity and voluntary will are assessed. Thus, the law will provide additional protection for borrowers and preventive control over the legality of mortgage transactions with housing.