The Federal Service for State Registration, Cadastre and Cartography (Rosreestr) started accepting electronic documents for the state registration of rights on real estate in accordance with the Federal law №218-FL «On state registration of real estate» having come into force since January 1st, 2017.

The service of filing documents in electronic format gives an opportunity to both citizens and representatives of legal entities as well as entrepreneurs to receive one of the most important and popular service directly from the original source having no time lost.

The service provides means for filing an application and the attached documents for registration of termination, transfer, restriction or encumbrance of rights on real estate, the data on which is involved in the Unified State Register of Real Estate (EGRN). It is also possible to receive extract from the EGRN in electronic format on real estate units.

The extract contains the data on the unit description; type and cadastral number; cadastral value; date of its approval; corporate details of the act on approval of cadastral value and the date of its entry in the EGRN; date of filing of an application on reconsideration of cadastral value and start date of its use.

According to the Letter of the Federal Tax Service of the Russian Federation as of 07.02.2017 №BS-4-21/2140@, the data on cadastral value upon the request of the tax authority received in such a way may be used for the purposes of the tax administration, including for updating of information in databases of tax authorities.

Documents for state registration of rights on real estate may be filed to the Federal Cadastral Chamber or to the multifunctional center (MFC) “My documents” personally.

The Federal Cadastral Chamber carries out the state cadastral registration of real estate units, maintenance of the state cadastre of real estate, registration of buildings, constructions, premises, facilities under construction, state cadastral valuation, provides services in the field of registration of rights on real estate and related deals and cadastral registration of real estate.

According to the Federal law №218-FL, the state registration of rights on real estate is to be produced no longer than 7 days. In case of applying to MFC “My documents”, the service will be rendered within 9 days.

The new services came into operations on the Rosreestr web-site: “User account of rights holder”, “User account of cadastral engineer”, “Reference information on real online”. The prior services were brought in line with the Federal law №218-FL as well. In the User account of rights holder on real estate there is a service “Offices and receptions. Pre-appointment.” This service provides an opportunity to prearrange the visit to the Federal Cadastral Chamber office.

The access is also open to the services making in possible to check the service delivery procedure - “Verification of order (application) fulfilment” as well as – electronic signature accuracy and to print the received electronic extract - “Verification of electronic document”.

More than 400 thousand applications on state registration of rights on real estate were forwarded to the Rosreestr through an electronic service during 2016. In January-February 2017 more than 2500 applications on registration of rights were accepted on exterritorial concept. The corresponding procedure is also provided by the Federal law №218-FL.

Due to the exterritorial concept of rendering services, it is possible to apply for registration of rights without regard to the real estate unit location. Rosreestr accepts applications on registration of rights within the whole territory of the country. In each region there are offices, where it is possible to file an application on registration of rights on real estate located in other regions.

Subscribers of the Information and Analytical system Globas-i^® may order the extracts from EGRN with the help of the service “Cadastral map” in the main menu section Additional information or directly from the company report reviewing its location of the map.

Government support and informational transparency will help to reduce the cost of credits for small and medium business

After the announcement of Vice-premier Igor Shuvalov about completion of preferential credit program for small and medium-sized enterprises during the meeting of the Russian White House’s «project office», the news about continuation and expansion of the program sounds good for business representatives. However, not all entrepreneurs will obtain the easy money. To reduce the cost of credits in long-term perspective, the joint steps of the Government and private industry are necessary.

«Program 6,5%». The concept of preferential credit program («Program 6,5%»), which is implemented from the end of 2015 by Corporation for the Development of Small and Medium Business in association with 31 authorized banks - is to provide the borrowed funds in the amount from 10 mln RUB to 1 bln RUB at the rate of 10,6% for small business and 9,6% for medium business (at the moment the average rates for small business are amounted to more than 14% and about 13% for medium business). The banks themselves receive refunding in the Central Bank of Russia at the rate of 6,5% per annum. The period of preferential funding is up to three years. Only companies with high-tech and import-substituting projects within eight industries (health care, agriculture, manufacturing, construction, etc.) may obtain preferential credits. About 90% of credits issued by three state-owned banks – VTB, Sberbank and Russian Agricultural Bank.

New sums, additional financing. The program seems to be efficient due to positive opinion of entrepreneurs and bankers. The program turned out to be popular: by February 2017, only one third of the limit (125 bln RUB) approved by the Central Bank remained unselected, and business community was hoping for additional 50 bln RUB; however, on 17 February during the meeting of «project office» Igor Shuvalov announced about completion of a program. According to the Vice-premier, the «Program 6,5%» is an anti-crisis program and it’s time to look for new mechanisms of economic growth. The business community negatively respond to the news, however ten days later, on 27 February during the Investment Forum in Sochi, the Vice-minister Dmitry Medvedev stated about continuation and expansion of the program. Now the preferential credits will be granted at the amount of 5 mln RUB, that will make them available to micro-enterprises. From 1 July the program limit will increase by 50 bln RUB; according to new conditions, the program will affect regional banks, that will allow to reach the maximum number of small and medium-sized enterprises and in case of success during the current year, the preferential credit financing will be prolonged for 12 months.

Informational transparency will reduce the rates. According to market analysts, the decision to extend the «Program 6,5%» is absolutely correct. However, despite the success and efficiency of the program, it is impossible to forget about its stippling and limited terms. Meanwhile companies across all industries are stand in need of credit financing. In fact, the small and medium business deal with the exorbitant and defensive rates. Entrepreneurs point attention at the complexity and duration of obtaining the financing and low bank interest while working with small and medium-sized enterprises. Within such conditions, it is much easier and faster to solicit accounts into micro-enterprise at the rate of 25-30% per annum, than spend time and money in attempt to meet the requirements of major credit organizations. The reason of this is extremely poor quality of credits for small and medium-sized enterprises and high share of loan delinquency. Even using high interest rates, the bank margin can barely cover the credit risks and potential losses from non-repayment of borrowed funds. Efforts, making only by banks, are not enough to reduce the rates in order to improve the quality of credit portfolio. Extremely low informational transparency does not let to make correct evaluation of the potential borrower’s business, increase expenses and time on loan application review (sometimes for months) and, as a result, increase the interest rate, making them exorbitant for entrepreneurs. Under the conditions of extreme privacy, only joint steps of credit institutions and business towards each other will be able to provide the market with easy borrowed funds in long-term perspective.