OREANDA-NEWS. October 13, 2011. Mr. Vitaly Us, Director of the Financial Risks Insurance Department of IC ROSNO, delivered a speech at the roundtable discussion "Protection of Rights of Bona Fide Real Estate Purchaser", held as part of the St. Petersburg-based Russian Housing Convention, reported the press-centre of ROSNO.

The St. Petersburg Russian Housing Convention is the biggest business event in the B2B real estate market segment. Traditionally, the political and business elite of the majority of the Russian regions participates in the convention, and the present convention is no exception.

The report made by Vitaly Us on the topic "Title Insurance: Efficient Tool for Protection of Rights and Property Interests of Bona Fide Real Estate Purchaser" aroused great interest among the roundtable participants. The audience agreed that presently title insurance is the only efficient tool protecting interests of real estate owners, and this insurance segment requires comprehensive support and development.

In his speech Mr. Vitaly Us noted: "The Russian legislation contains provisions enabling seizure of property even from bona fide real estate purchasers. This occurs in cases of violation of third-party rights. In this respect, most vulnerable are housing buyers in the secondary market where the majority of apartments have been already resold several times, and though realtors check documents and, as a rule, guarantee legal cleanness of the deal, they would not bear financial liability in case of mistakes. Full financial liability is borne by the insurance company which insures title (ownership right) risks. During the initial survey, insurer thoroughly checks the entire chain of transactions. In a number of cases, once the apartment’s legal record has been checked, insurer may recommend its client not to purchase such real estate. Moreover, insurance company represents and protects the interests of its clients in court. Indeed, along with financial protection, policy purchase involves additional professional audit and legal support. Thus, title insurance is virtually the only way to protect bona fide real estate buyers".

ROSNO has been providing title insurance since 1998, being a recognized leader in this type of insurance, offering its clients and partners a thorough and prompt underwriting, whereunder the list of documents and information required for pre-insurance survey is restricted to meet only most necessary requirements, and the survey itself is conducted by the company’s experts within a shortest time possible.

IC ROSNO is working with all types of real estate — from private garages and rooms in communal apartments to expensive commercial real estate and enterprises as property sets. During the 9 months of 2011, ROSNO issued about 500 title insurance policies (not including mortgage insurance policies covering personal loans). During the said period, 8 insured events were claimed, totaling over 21 mln. roubles. The majority of such cases were settled in favour of insurants without payment of compensation (court cases were won with the help of ROSNO which represented the insurants’ interests). Other cases are undergoing the settlement stage.