Proposal Seeks to Shield Homebuyers from Realtor Fee Losses in Fraudulent Sales

Russia’s law enforcement agencies have proposed a new consumer protection: if a property deal is later deemed invalid by a court, the real estate agent would be required to return the commission they charged. The initiative comes from the Interior Ministry, the FSB and the Prosecutor General’s Office and is designed to be part of the third anti-fraud legislative package known as “Antifraud 3.0,” according to draft documents seen by the business daily Vedomosti.

The push follows a shift in fraud patterns. After banks tightened anti-fraud procedures, criminals are increasingly targeting real estate transactions, leaving victims without a home and more susceptible to further exploitation, the Prosecutor General’s Office noted. The measure would create a specific regulatory framework for realtor activities and a clear mechanism to recover brokerage fees when a sale unravels.

However, the proposal is far from final. The state real estate registry, Rosreestr, has already opposed its inclusion in the anti-fraud package, arguing the issue should be handled separately. The Ministry of Digital Development also does not back the measure, seeing real estate fraud as distinct from information and communication technology crimes that the bill targets. The ministries of Internal Affairs, the FSB, and the Prosecutor General’s Office are awaiting a formal report from Rosreestr before forming a consolidated position.

Behind the Proposal: Why Fraud Is Moving into Real Estate and How the Market Is Reacting

The Fraud Shift to Real Estate

Data from the Chamber of Commerce and Industry’s housing committee illustrates the growing exposure. In 2025, 3.98 cases of fraud were recorded per 10,000 transactions where a realtor was involved—roughly a third lower than the 5.96 cases in deals without an intermediary, but still more than four times the rate in 2020. By contrast, notarised transactions had just 0.56 fraud cases per 10,000, and digital platform deals 1.65 cases. That gap explains why law enforcement now wants to incentivise agents to conduct stricter due diligence.

Advertisement

What the Proposal Changes—and Where It Might Overreach

Currently, if a sale is annulled, the buyer and seller are generally expected to return money and property to each other under the principle of bilateral restitution. The realtor’s fee, however, is usually kept, because intermediaries argue they are paid only for arranging the deal, not guaranteeing its legal validity. The new mechanism would shift that risk back to the broker, potentially making them liable for the full commission if the transaction fails.

Industry figures caution that a blanket refund obligation could be excessive. A Moscow realtor’s commission on a secondary home sale averages 2.5–3% of the property value, rising to 5–7% for urgent or premium deals. If an agent must refund even when the sale collapses through no fault of their own—for example, because of a later bankruptcy by one party—costs could rise for all clients. A more balanced solution, some experts suggest, would be a partial refund and a time limit on claims, with full liability reserved for cases where the agent’s own actions caused the transaction to be voided.

Inter-Agency Tug-of-War

The disagreement among government bodies underlines the uncertainty. Rosreestr sees no grounds for special realtor regulation and wants the measure separated from the anti-fraud bill, while the Ministry of Digital Development objects on jurisdictional grounds. The Prosecutor General’s Office, meanwhile, wants a more comprehensive picture before signing off. The result is that even if the idea survives, its final shape—and whether it ever becomes law—remains unclear.

What Homebuyers and Sellers Can Do Until New Rules Arrive

The proposal has not yet become law, but the debate highlights practical steps homebuyers and sellers can take right now to protect their money in any Russian property transaction:

  • Insist on a detailed contract with the realtor. Legal experts emphasise that the more precisely the intermediary’s obligations are spelled out—especially checks on the property’s title and the seller’s legal capacity—the stronger your position in court if the deal later fails. A vague agreement leaves little room to demand a refund.
  • Consider notarial certification for high-value deals. The fraud statistics show notarised transactions carry only a fraction of the risk of broker-assisted ones. The extra cost of a notary can be a fraction of the potential loss of a commission or even the property itself.
  • Keep all proof of payment and service delivery. If you ever need to seek a refund of the realtor’s fee under current law, you will need to show exactly what services were paid for and whether the agent fulfilled their obligations. Bank transfers and written confirmations of checks performed are far more reliable than cash and verbal assurances.
  • Be aware of the principle of bilateral restitution. If a sale is annulled and both parties acted in good faith, the law generally requires each side to return what they received. This does not automatically cover the realtor’s fee, but it does mean you may recover the property’s purchase price. Knowing this can help you avoid panic-driven decisions if a transaction is challenged.