‘E-Mortgage in One Day’ — how pilot being realised in Tatartsan

Regional project has attracted more that 8,000 applicants since September

‘E-Mortgage in One Day’ — how pilot being realised in Tatartsan
Photo: Maksim Platonov

Until recently, Tatarstan residents couldn’t even think about registering a mortgage in Rosreestr in one day as many transactions are performed today. At least, the pilot project of Rosreestr, which has offered this online service, has already attracted the attention of borrowers. As Realnoe Vremya found out, more than 8,000 real estate buyers on credit has already taken advantage of this service in only few months, and 77% of all registered transactions were registered in a day. Read the details in the material of Realnoe Vremya.

How E-Mortgage in One Day works

Tatarstan has proceeded to realise the project “E-mortgage in one day” since last September. Within the project, the registration period of truncations in Rosreestr is only 24 hours instead of prescribed standard 5-7 working days if no comments.

Currently, the Federal Law No. 218-FZ as of July 13, 2015 “On State Registration of Real Estate” specifies the terms of registration of residential mortgage: five working days from the date of receipt or the receipt of application to the registration authority of rights and seven working days from the date of receipt of the application by the multifunctional centre. Thanks to the pilot project, Tatarstan citizens have the opportunity to quickly issue an electronic mortgage in one working day without visiting the offices of multifunctional centres using Rosreestr electronic services.

As part of the “Electronic Mortgage in one day” project, the Rosreestr of Tatarstan registered the first electronic package of mortgage documents in 24 hours on September. The first online mortgage in the region for the purchase of a new two-room apartment was issued by a young Kazan resident who decided to improve his living conditions — to move from a khrushchevka to a new building.

As Rosreestr reported to Realnoe Vremya, thanks to the “E-mortgage in 24 hours” service, any online application for mortgage registration, equity participation agreement using credit funds, purchase by a citizen of an apartment or a house with a mortgage submitted to Management through electronic banking services, in the absence of comments, is fully processed before the final documents in just one working day.

“This service was introduced only a few months ago, but we are already seeing its demand among applicants: more than 77 percent of electronic mortgages are registered per day, in total, more than 8 thousand people have used this service at the moment,” Lilia Burganova, the deputy head of the Rosreestr Department for the Republic of Tatarstan, noted in an interview with our publication.

If 26 regions took part in the project in the second quarter of 2021, today all 85 subjects of Russia are covered.

“It’s a very timely opportunity”

The Guild of Realtors of Tatarstan told Realnoe Vremya that that market participants are already actively using this service.

“The service is very timely. The digitalisation of processes of interaction with Rosreestr, including the registration of real property rights, has accelerated recently,” Ruslan Sadreev, the vice president of the guild, director of Premier-Nedvizhimost company, said.

The pandemic of the new coronavirus infection also played a role. In 2021, compared with 2020, the share of electronic transactions increased by 30-40 percent, and this indicator will definitely grow.

The expert is convinced that electronic registration is one of the significant trends of recent years, consonant with the Stop-Bumaga programme adopted by Rosreestr and involving the transition to fully electronic provision of services.

According to him, applicants have been using the possibilities of electronic registration of transactions for several years, but the minimum time reached three days. If the applicant walked with his feet to a multifunctional centre to submit documents for registration of rights, then the deadlines were stretched to even a week.

“From September, it is already possible, and advisable, to register an electronic mortgage transaction in 24 hours. Mostly professional participants of the market, when one party is developer, or the transaction is executed by a realtor company, are using this option. In this case, it is supervised by a lawyer, he tells the citizens all nuances and organizes the electronic transaction,” Sadreev clarified.

At the same time, electronic registration is not possible for every transaction — there are certain restrictions, in particular when it comes to the property of minors and the incapacitated.

The citizens who register a transaction independently, without professional support, will also have the opportunity to use the E-Mortgage in One Day service without any problems, the interlocutor of the publication is convinced: “If the applicant himself is legally savvy, familiar with the specifics of document management, he or she should not have any problems. But, of course, the main channel of applications for electronic mortgage now is developers and real estate agencies. As a rule, people turn to such organisations.” According to him, at least 50% of real estate transactions today are electronically registered, and in the case of mortgages — even more: “I think in the next year or two we will reach 70-80%.”

“Registration in a day reduced the terms of wait time of money”

Andrey Savelyev, the president of the Tatarstan guild, considers the service not only demanded but even belated.

“Now almost every bank has its own online registration. All developers and even many real estate agencies have their own registration, it takes 1-2 days on average. If we take the whole market, both primary and secondary markets, more than half of transactions are electronic. If we talk about mortgage, than almost 90% of transactions are online.”

According to his estimates, many Tatarstan citizens are willing to use online registration without undue bureaucracy: “Main convenience is the absence of need to go for documents. If you go on foot to a multifunctional centre, then you will go for the second time there to get these papers, but with online registration, we will receive these documents online.”

According to Savelyev, the launch of the pilot will allow the state agency to move with the times, which is especially relevant if we remember the complaints of Tatarstan residents about long queues and long consideration time of applications. Anastasia Gizzatova, the head of Schastlivy Dom real estate agency, highlighted another advantage of the service — it will reduce the wait time of money.

“A typical case with mortgage: when you apply for a mortgage registration, and a bank participates in the deal, then the transfer of the money the bank provides happens after the person who buys an apartment becomes the owner. As a rule, it takes 5-9 days. It turns out the seller has to wait for money for a week at least. As a rule, people need money as quicker as possible when real estate is sold. Not when the registration finishes but immediately after signing the contract. Thus, registration in one day reduced the wait time and makes the transactions convenient. It is convenient of all parties if the deal,” the expert noted.

Ruslan Khabibrakhmanov, the head of Flat agency, admitted that they try to make majority of transactions online. At the same time, there are certain pitfalls.

“In fact, online mortgage registration takes 1-3 days, with cash — 3-5. There are inconveniences, if there are remarks, Rosreestr returns the documents but doesn’t suspend the transaction. As we know, this is due to the imperfection of the internal software of Rosreestr,” the interlocutor says.

According to Khabibrakhmanov, short registration periods are convenient for sellers, in particular, for mortgage transactions, or for transactions with settlement through a bank cell. “In such transactions, the receipt of money by the seller depends on registration. It is advantageous for buyers in cases when, under the terms of the contract of sale, the transfer of an apartment is tied to the fact of registration,” he said.

Kristina Ivanova