How to check if there are any legal disputes regarding a property

Checking for litigation before buying or investing in real estate is a complex process that requires specialized knowledge and experience. A professional lawyer is able to systematically assess all risks and determine which cases can really affect the transaction. The greatest impact on residential and commercial real estate is caused by litigation that calls into question the right to ownership or the ability to freely dispose of the property. These include civil disputes regarding the division of property, requisition, invalidity of transactions and mortgages, as well as economic conflicts between developers, contractors or investors.

Before any real estate transaction, it is important to make sure that the property is not involved in litigation that can disrupt or complicate the transaction. Such a check helps to identify risks such as arrests, challenges to the rights or claims of previous owners. If necessary, you can contact the company “DE-JURE”: our lawyers will help you conduct a full inspection of the property and correctly interpret its results.

What legal proceedings can affect real estate

The greatest impact on residential and commercial real estate is caused by legal proceedings that question the right of ownership or the ability to freely dispose of the object. These include civil disputes regarding the division of property, requisition, invalidity of transactions and mortgages, as well as economic conflicts between developers, contractors or investors. Administrative cases on the cancellation of registration actions or building permits are also important. A separate threat is represented by enforcement proceedings and arrests within the framework of criminal cases, which can completely block any manipulations with real estate.

Preparatory stage: what data is needed for a quality inspection

Before starting the inspection, it is important to collect all identifiers that allow you to accurately identify the real estate. These are all variants of writing the address, the cadastral number of the land plot, the registration number of the real estate object (RNONM) or the entry number in the DRRP. For individuals, you will need your full name and RNOKPP, for legal entities, your name and EDRPOU. Also collect data about the developer, condominium association, or manager. It is worth separately creating a list of known transactions and encumbrances to more accurately outline the list of potential litigation.

Where to find information about disputes: key government resources

DE-YURE lawyers often support real estate transactions, and when checking, they work according to a clear algorithm. First, they determine the range of potential disputes, and then check them through official government instruments. This approach allows you to get the most accurate and confirmed information before concluding a contract. The main sources of verification are as follows:

• EDRSR (Unified State Register of Court Decisions). This is the main tool with which you should start checking any real estate object. To determine the presence of disputes as accurately as possible, work in several directions at once. First, check the information by the parties – enter the full name, RNOKPP, EDRPOU or the name of the company that may be associated with the property. Then test the search by address or cadastral number, because sometimes the object appears in the case precisely by location. The third approach is to search by the subject of the dispute: “request”, “mortgage”, “recognition of right”, “secure the claim” and other wording that may indicate risks. Be sure to use filters by jurisdiction and court instance. First of all, review the rulings on securing the claim – they are the ones that most quickly signal potential threats to the future agreement;
• portal “Judiciary”. In the “Status of cases” section, you can check the stage of the proceedings, appeal or cassation, as well as the date of the nearest meeting. This is especially important when the decision of the first instance has not yet entered into legal force;
  DRRP (State Register of Real Property Rights to Real Estate). An extract from this database shows all current rights and encumbrances: mortgages, arrests, prohibitions on alienation. Be sure to compare the dates and numbers of records with court materials – this allows you to understand whether the restriction is valid and who imposed it;
• Unified register of debtors and open data of the enforcement service. The fact of a person entering the register does not mean the arrest of a specific property, but signals possible enforcement actions. They need to be checked through the DRRP and the bailiff’s decisions.

Finally, it is worth assessing the generalized picture: even one inconspicuous entry can have significant consequences for the transaction. In complex cases, it is better to immediately involve a lawyer to avoid risks.

Algorithm for deep verification without templates

An effective real estate verification is not limited to a mechanical check-list. It should be built as a sequential analysis of all available connections between people, companies and the object itself. It is most reasonable to start with the participants in the potential transaction. If, during a search by legal entity, you come across a court decision that mentions the desired object, you should immediately proceed to a new search using the case number found. This will allow you to see the entire history of the process and the dynamics of the decisions made.

If the search by parties does not yield results, switch to an alternative method – test different options for writing the address or cadastral number: the full name of the street, abbreviations, transliteration. This is critical, because in the Unified State Register of Real Estate, participants are often anonymized, replacing them with “Person-1”, “Person-2”, and then the search by full name simply will not work.

After the initial analysis of the decisions, be sure to go to the “Status of Case Consideration” to find out whether the consideration is ongoing, whether an appeal has been filed, or the case has been returned for new consideration. This determines whether the risk is relevant. Next, order an extract from the DRRP and compare the encumbrances with the case numbers or executive decisions. At the final stage, check the Unified Register of Debtors by owner, developer, or condominium association and, if necessary, contact the parties with a request for documents confirming the legality of their actions.

How to recognize risks in case materials

To correctly assess potential threats to a real estate transaction, you need to go through three key steps in analyzing court materials:

1. Checking the decisions to secure the claim. The seizure of property, a ban on registration actions, or the transfer of the object to third parties are effective immediately and effectively block the possibility of concluding a transaction.
2. Assessing the subject of the dispute and the formulated demands. Phrases such as “recognize ownership”, “reclaim property”, “recognize the contract as invalid” or “foreclose on the mortgage” immediately indicate a high level of risk.
3. Analyzing the stage of the process. Even if the first instance ruled in favor of the seller, an active appeal or cassation indicates that the situation is still far from over.

After the analysis, it is better to compare the data obtained with other registers and, if necessary, contact lawyers to correctly interpret the case materials and avoid mistakes.

When verification becomes complicated: specific categories of objects

In some cases, the standard verification algorithm is not enough. Certain real estate objects require an extended analysis. The following are situations in which there are high legal risks:

• new buildings and objects under construction. Not only disputes between investors and the developer regarding contracts or obligations are important, but also administrative processes: cancellation of registration actions, cancellation of certificates of readiness, conflicts with DIAM. Such decisions can completely destroy the legal model of the project and affect all investors without exception;
• land plots. Disputes regarding boundaries, intended purpose, lease, easements or renewal of contracts require special attention. The cadastral number is the main tool for searching for information in both court decisions and registers;
• real estate objects in joint ownership and inherited objects. Cases of division of property, allocation of shares or recognition of inheritance rights can create serious risks for the buyer. Be sure to check the consent of co-owners;
• criminal proceedings. Arrests in criminal cases are imposed promptly and often operate in parallel with other disputes. It is important to investigate the grounds for the arrest and the status of the owner.

Each of these cases requires attention and in-depth analysis, because a mistake can be very expensive.

Typical errors and limitations when checking litigation

Checking court materials is often accompanied by the risk of missing something or drawing incorrect conclusions. The most common errors that can be made when checking real estate litigation:

• different spellings of addresses and anonymization of participants in the Unified State Register of Legal Entities, which is why a search by full name may not yield results;
• changes in the names of legal entities or reorganization: you need to check old and new names, be sure to use the EDRPOU code;
• relying only on available texts of decisions, as some documents may be missing or published with a delay;
• ignoring the stages of the process: a first instance decision does not guarantee a completed result, since an appeal or suspension of execution can change the situation.

To avoid mistakes and correctly assess the risks, it is advisable to involve lawyers who will help to correctly interpret data from different sources and record important dates.

How DE-JURE lawyers help to check real estate litigation

Checking for litigation before buying or investing in real estate is a complex process that requires special knowledge and experience. A professional lawyer is able to systematically assess all risks and determine which cases can really affect the deal. In particular, a lawyer helps to:

• correctly identify the property and parties for search in state registers;
• identify decisions on securing the claim and other “red flags” in case materials;
• compare data from the Unified State Register of Real Estate, the State Register of Real Estate and other sources, check the stage of the process and possible appeals;
• assess specific cases: new buildings, land plots, joint ownership, arrests within the framework of criminal proceedings;
• make recommendations on the safe conclusion of the deal and avoiding potential losses.

Turning to lawyers guarantees that the check will be comprehensive, and the risks of real estate transactions are minimal.