What is the "Dolina Effect" and Why It Has Become One of the Key Risks in the Real Estate Market of Russia and the CIS. Analysis of Threats for Investors, Reasons for Judicial Annulling of Transactions, and Recommendations for Protecting Buyers.
The term "Dolina Effect" entered public discourse following a high-profile case involving the famous singer Larisa Dolina. This term refers to a fraudulent scheme in which a seller of an apartment (typically an elderly person) cancels the transaction through court, claiming that they have fallen victim to phone fraudsters. This scheme allows the "seller" to reclaim the apartment while keeping the payment made by the buyer. The emergence of the term has been reported in media and even encyclopedic sources: for instance, in late 2025, Wikipedia published an article detailing this phenomenon (primarily related to cases involving elderly sellers).
Origin of the Term
At the heart of the story is Larisa Dolina's case. In the summer of 2024, the singer sold her apartment in Moscow, transferring the proceeds to criminals (part of the payment was made through "safe accounts"), only to later discover that she had been deceived. In September 2025, a court declared the transaction invalid due to "defect of will" on Dolina's part (as she had been misled), returning the apartment to her while the buyer lost both her home and her money. This high-profile precedent served as a signal: similar stories began to emerge across the country. Sellers and their relatives began filing lawsuits to regain their property, claiming they had been misled. In media and legal circles, this scheme became known as the "Dolina Effect," transforming a singular precedent into a widespread fear in the secondary real estate market.
The Legal Essence of the Problem
The conflict of legal interests here is straightforward: on one side is the protection of the "aggrieved" seller's (particularly vulnerable elderly sellers) rights to reclaim their property, and on the other side, the rights of a bona fide buyer to retain their acquired home. As it is usually impossible to prove a criminal connection between the buyer and the fraudsters, courts frequently apply provisions that protect sellers from deception or misrepresentation. The main grounds for declaring a transaction invalid are significant seller misapprehension or fraud (Articles 178, 179 of the Civil Code of the Russian Federation).
- Courts often declare transactions with vulnerable sellers invalid under Articles 177–179 of the Civil Code of the Russian Federation (incompetence, misapprehension, fraud).
- In practice, buyers often end up without real estate after the contract is disputed, and the payments they made are rarely returned—often, the funds remain "frozen" until the conclusion of criminal proceedings against the fraudsters.
- The courts' position is to protect the "weaker party" in the transaction: if it is proven that the seller acted "without awareness" (due to age, illness, stress, or pressure), the contract is dissolved, despite the formal legality of its execution.
Scale and Market Consequences
The problem has transcended the confines of a single case: by 2025, thousands of transactions across Russia had been disputed using similar schemes. Even if the official number of transactions remains stable, market participants note a growing sense of anxiety. Buyers are increasingly wary of deals involving suspiciously low prices or elderly sellers and demand additional guarantees. Many secondary transactions now come with added scrutiny and conditions.
- In major cities, there has been a sharp increase in safe payments: for example, notaries in St. Petersburg report that by the fall of 2025, the number of transactions conducted through a notary's deposit has more than doubled.
- Real estate agents acknowledge an increase in transaction complexity for "pensioner" apartments: new requirements have included certificates from psychiatric dispensaries, involvement of relatives of the owner, video recording of meetings, and detailed document examinations.
- A potential decrease in the liquidity of such properties is likely: the market fears "volatile" offerings, leading to pensioners' housing being sold at a discount or remaining on the market for longer periods.
Risks for Buyers and Sellers
- Buyer: loss of property rights (the apartment is returned to the previous owner), freezing of invested funds and mortgage obligations, prolonged court costs, and reputational risks.
- "Seller"-victim: the risk of losing both their apartment and money (especially if the funds have been transferred to fraudsters), pressure from relatives and law enforcement, the need to provide testimony and participate in litigation.
Reactions from the Government and Professional Community
The government has begun to closely monitor the situation. Legislative proposals and protective measures are being discussed in the State Duma: mandatory notarization of real estate transactions, compulsory insurance of apartments under certain circumstances, and the introduction of a "cooling-off period" (holding funds in a bank deposit for several days) are being proposed. Government agencies are coordinating assessments of judicial practices. Professional communities are also suggesting new standards: expanding notaries' authority to verify property histories and sellers' conditions, strengthening banking compliance (banning "safe accounts"), and developing recommendations for realtors working with vulnerable owners.
Practical Recommendations for Buyers
To mitigate the "Dolina Effect" in a specific transaction, buyers should:
- Meticulously verify the seller and the property: request a recent extract from the Unified State Register of Real Estate (which reveals ownership chains and encumbrances), study title documents, and check for restrictions.
- Assess the seller's condition: meet in person, clarify their family and property situation, and analyze any suspicious signs (sharp discounts, urgency, emotional background).
- Conduct the transaction under expert supervision: engage an experienced lawyer and notary, structure payments through a bank escrow or notary deposit, where funds are transferred to the seller only after the transaction is registered.
- Seek guarantees: involve the seller's relatives or guarantors in the transaction, who can affirm the seller's voluntary intent and be willing to return funds to the buyer if the deal is annulled.
- Consider title insurance: such a policy may cover the paid funds in the event the transaction is later declared invalid.
Practical Recommendations for Elderly Owners
To avoid becoming involved in such a story, elderly homeowners should:
- Avoid trusting dubious phone calls: ignore messages "from the authorities" and offers to transfer money to "safe accounts" from strangers.
- Consult before selling: discuss terms with trusted relatives and a lawyer, do not rush to make deals under pressure, and do not sign documents without understanding their essence.
- Conduct transactions securely: whenever possible, have notarization and property inventory, and avoid granting broad powers of attorney unnecessarily.
- Implement protective mechanisms: in agreement with family, establish limited powers of attorney, guardianship, or a prohibition on registered transactions without personal participation. Additionally, consider drafting a will or marital agreement to predefine the fate of the property.
Possible Future Scenarios
If current practices persist, the number of disputes and distrust will only increase: transactions will become more expensive and take longer, and the segment involving elderly sellers may slow down. At the same time, authorities and businesses are seeking a balance of interests. Among the discussed measures are the expansion of mandatory title insurance practices, the introduction of a "cooling-off period" (for instance, a week-long holding of funds in a bank), the creation of centralized risk registries, and mandatory checks of the seller's mental and financial state.
Conclusions
The "Dolina Effect" is not an isolated incident of notoriety but a symptom of the systemic vulnerability in the real estate market to fraud and legal uncertainty. Investors must remember that real estate transactions require meticulous preparation and professional support, especially when dealing with vulnerable sellers. Only a comprehensive approach—thorough verification of the property, notarial facilitation, careful organization of settlements, and risk insurance—will prevent costly losses. Without such measures, the "Dolina Effect" may affect virtually any homebuyer.
