‘Etazhi’ Checks Home Buyers in Russia Against Draft Notice Registry

Russian real estate agency network ‘Etazhi’ has started requesting extracts from the draft notice registry from clients before completing property transactions, RBC reports. The company said there have already been cases when registration of contracts involving conscripts was suspended. Transactions involving such buyers and sellers are considered to carry additional risks.

Restrictions on Real Estate Transactions in Russia

Etazhi CEO Sergey Chuzhakov explained that extracts from the draft notice registry are requested from property sellers and buyers aged between 18 and 65. The document is provided only with the consent of the parties involved in the transaction. The decision was prompted by changes in legislation.

In April 2023, Russian President Vladimir Putin ordered the creation of a unified registry of persons liable for military service and the introduction of electronic draft notices, which can be sent, among other ways, through the Gosuslugi government services portal. A notice is considered delivered from the moment it appears in a citizen’s personal account.

Citizens who receive a draft notice but fail to appear at a military enlistment office without a valid reason within 20 calendar days may face temporary restrictions in several areas, including:

• registration of real estate and vehicle transactions;
• the right to drive vehicles;
• entering into credit and loan agreements.

Restrictions are lifted after a citizen appears at the military enlistment office or provides confirmation of a valid reason for absence. The decision is generated automatically in the military registration database and signed with an electronic signature.

Etazhi had already encountered a case when Rosreestr suspended a real estate transaction, which led the company to introduce an additional requirement. The head of the agency believes that providing the extract does not create significant difficulties and will help prevent similar situations in the future.

Legal Experts’ Views

Candidate of Legal Sciences and Associate Professor Bulat Tugutov believes that requesting an extract from the draft notice registry does not contradict the law. According to him, a real estate agency has the right to request additional documents if it considers them necessary to reduce transaction risks. However, providing such an extract is not a legal obligation for clients, and refusal to provide it does not constitute a violation. At the same time, the company may take such a refusal into account when deciding whether to proceed with the transaction.

The expert also noted that the restrictions established by law most likely apply to conscripts — men aged 18 to 30 — while Etazhi checks clients up to the age of 65. According to Tugutov, this wider age range may be a form of additional risk prevention by the company.

Lawyer Alexander Nadmitov emphasized that this is an additional precautionary measure introduced by a specific company. In his view, it would be incorrect to say that such a requirement now applies to all Russians aged 18 to 65.

Artem Gritsyuk, managing partner at the Time Lex law firm, explained that the law “On State Registration of Real Estate” does not list an extract from the draft notice registry as a mandatory document required for registering a transaction. He considers the requirement unlawful.

A New Approach to Transaction Checks

International Investment analysts note that the real estate market is beginning to adapt to new legal risks. At present, checking clients against the draft notice registry remains an initiative of individual companies rather than a mandatory requirement for all transaction participants. However, the practice could expand and be adopted by other agencies.

This means that some property buyers and sellers may effectively lose the ability to complete real estate transactions while restrictions are in place. The changes primarily affect Russian citizens who avoid military service and fail to comply with draft notices. For them, selling property, receiving funds, and leaving the country may become more complicated.

For most market participants, the new practice will simply mean an expanded set of documents and additional due diligence procedures. Checking for possible restrictions related to new legislation may become part of standard risk assessment procedures alongside other stages of transaction verification, which investors should take into account.