Required Disclosures in Russia

Under Chapter 35 of the Civil Code of the Russian Federation (Articles 671–688) and the Housing Code, Russian residential rental law imposes specific obligations on landlords regarding the suitability and legal status of the property. While the jurisdiction does not require standardized disclosure forms, the statutory obligations for landlords to provide habitable premises and verify ownership are governed by the Civil Code.

1. Third-Party Rights and Continuity (Articles 675 and 676)

Residential tenancies (Naim) handle third-party rights differently than commercial leases. According to Article 676, the landlord is required to hand over to the tenant vacant living quarters. Furthermore, Article 675 ensures the continuity of the lease: the transfer of ownership of a leased residential property does not terminate or change the tenancy agreement. The new owner automatically becomes the landlord on the same terms.

While Chapter 35 lacks a specific mandate to warn of all encumbrances, practical due diligence involves verifying:

• Mortgages (Pledges): Whether the property is pledged to a bank (e.g., Sberbank or VTB).
• Arrests: If the property is under arrest by bailiffs due to the owner's debts.
• Other Co-owners: If the apartment is jointly owned, the tenant should ensure the landlord has the right to lease the property on behalf of all owners.

Consequences of Non-Compliance: If a landlord fails to provide vacant possession or if the property is not as described, the tenant may seek remedies under general contract law or terminate the agreement if the property becomes unsuitable for residence.

2. Suitability for Habitation and Defects

According to Article 676 of the Civil Code, the landlord is obligated to hand over living quarters in a condition suitable for habitation. The premises must meet established sanitary and technical standards. Unlike commercial leases, Chapter 35 does not explicitly impose strict liability for defects the landlord was unaware of, but the landlord remains responsible for ensuring the property is fit for permanent residence.

To avoid disputes, landlords should disclose and document all known defects prior to signing. If a defect is explicitly documented in the lease or the signed Inventory Act (e.g., "The washing machine occasionally leaks" or "The balcony door does not fully close"), the tenant is considered notified of the condition.

However, if the premises cease to be suitable for habitation or fall into a state of emergency, the tenant has specific rights:

Under Article 687 and general principles of the Civil Code, if the property is not suitable for residence, the tenant may:

1. Demand the landlord rectify issues to meet sanitary and technical standards.
2. Demand a proportionate reduction in rent.
3. Terminate the lease early without penalty if the premises are in a state of emergency or unsuitable for permanent residence.

3. The EGRN Extract and Privacy Laws (Federal Law No. 218-FZ)

The fundamental document for verifying a property's status in Russia is the EGRN Extract (an extract from the Unified State Register of Real Estate - Выписка из ЕГРН).

However, since 1 March 2023, under Federal Law No. 218-FZ and Law No. 266-FZ, personal data in the EGRN is no longer public. A tenant can no longer independently verify the owner's name through a standard extract.

To ensure a safe transaction:

1. Landlord Provision: The landlord must provide a full extract to the tenant or "open" their data in the register to allow the tenant to verify ownership.
2. Verification: The tenant should verify the landlord's internal passport against the provided EGRN extract to prevent sub-leasing scams.
3. Encumbrances: The extract remains the primary way to verify the presence of mortgages or arrests.

While the landlord is expected to provide this information, the EGRN document serves as the official state verification of these claims.

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