Resale of extracts from the EGRN runs risk of fines

Fines, web-resources blocking, suspension of operation for legal entities and physical persons, reselling extracts from the Unified State Register of Immovable Property (EGRN) – such offers are included in the bill of the Federal Law, transmitted by the Ministry of Economic Development of Russia in March of 2019 for approval to the State Duma.

Relevance of a bill, according to the developers, is caused by large amount of web-sites, providing extracts from the EGRN, also for a fee. Therefore, public service, entrusted on the Federal service of State Registration, Cadastral Records and Cartography (Rosreestr), is provided by commercial organizations without quality control on the part of government department. Besides, the service is of high demand. Market volume of extracts from the EGRN is valued at 2,5 billion RUB.

It is provided by the bill to make amendments to the Administrative Offences Code and impose liability for creation, filling content, maintenance and usage of web-sites, disclosing data from the EGRN. Sanctions can make a considerable amount. For example, fine amount up to 600 thousand RUB is assumed for repeated violation.

If the bill will be adopted, amendments are expected to finish up to the end of 2019. According to the initiator of the bill, appliance of new norms let reduce risks of unauthorized access to the EGRN, because of which responsible users of public services are not able to get access to system resources and servers of Rosreestr.

Limitations referenced in the bill can not only affect «spoof-websites» of Rosreestr, but also cause change of application rules of this information for reliable distributors. Data from the Rosreestr are used by organizations, for those providing of extracts from the EGRN is not main activity, e.g. notaries, lawyers and other organizations, providing clients with extracts on commercial basis as related service.

Hopefully, reliable distributors of that service – professional information agencies will be assisted in access to the information, and data about legal entities and physical persons will be updated by important facts of real estate possession.

Public discussion of the bill will be finished on April 26, 2019.