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. An Analysis of Threats for Investors, Reasons for Judicial Cancellation of Transactions, and Recommendations for Buyer Protection.
The term "Dolina Effect" entered public discourse following a high-profile case involving the famous singer Larisa Dolina. It refers to a fraudulent scheme whereby a seller of an apartment (typically an elderly individual) cancels a transaction through the court, claiming to have fallen victim to telephone scammers. This scheme allows the "seller" to reclaim the apartment while keeping the money paid by the buyer. The emergence of the term has been documented in the media and even in encyclopedic sources: for instance, in late 2025, Wikipedia published an article detailing this phenomenon (mainly related to cases involving elderly sellers).
The Origin of the Term
At the center of the narrative is the case of Larisa Dolina. In the summer of 2024, the singer sold her apartment in Moscow, transferring the proceeds to criminals (part of it via "safe accounts"), only to later discover that she had been deceived. In September 2025, a court declared the transaction invalid due to Dolina's "lack of will" (she was misled), returning the apartment to her, while the buyer lost both her home and her money. This resonant precedent served as a signal: similar tales began to emerge across the country. Sellers and their relatives started filing lawsuits seeking the return of 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 widespread anxiety in the secondary real estate market.
Legal Essence of the Problem
The conflict of legal interests here is straightforward: on one side, there is the protection of the "aggrieved" seller (especially elderly and vulnerable individuals) seeking to reclaim their property, while on the other side are the rights of the bona fide buyer to retain their acquired home. As it is usually impossible to prove a criminal link between the buyer and the scammers, courts often apply norms that protect the seller from misrepresentation or fraud. The primary grounds for declaring a transaction invalid are substantial misrepresentation by the seller or fraud (Articles 178, 179 of the Civil Code of the Russian Federation).
- Court rulings frequently declare transactions with vulnerable sellers invalid under Articles 177–179 of the Civil Code of the Russian Federation (incapacity, misrepresentation, fraud).
- In practice, after challenging a contract, the buyer often ends up without property, and the money paid is rarely returned—funds are typically "frozen" pending the conclusion of criminal proceedings against the scammers.
- The court’s position aims to protect the "weaker party": if it is proven that the seller acted "without realizing" (due to age, illness, stress, or pressure), the contract is terminated despite the formal legality of its execution.
Magnitude and Consequences for the Market
The issue has gone far beyond a single case: by 2025, thousands of transactions across Russia were contested under similar schemes. Even if official transaction figures remain stable, market participants report rising anxiety. Buyers are shunning deals involving suspiciously low prices or elderly sellers and demanding additional guarantees. Many secondary transactions now come with added checks and conditions.
- In major cities, there has been a significant increase in secure transactions: for example, notaries in St. Petersburg report that by the fall of 2025, the number of transactions through notarial escrow accounts has more than doubled.
- Realtors are noting a complexity in transactions involving "senior" apartments: requirements now include certificates from psychiatric and neurological dispensaries, the involvement of relatives, video recording of proceedings, and detailed document examinations.
- There is likely a decrease in the liquidity of such properties: the market fears "volatile" offers, and senior-owned properties may sell at a discount or stay on the market longer.
Risks for Buyers and Sellers
- Buyer: risk of losing ownership rights (the apartment is returned to the previous owner), freezing of invested funds and mortgage obligations, lengthy court expenses, and reputational risks.
- "Seller"-victim: risk of ending up without both the apartment and the money (especially if funds have been transferred to fraudsters), pressure from relatives and law enforcement, the necessity to provide testimony and participate in litigation.
Government and Professional Community Response
The government has begun to closely monitor the situation. Legislation and protective measures are under discussion in the State Duma: proposals include mandatory notarial certification of real estate transactions, compulsory insurance of apartments under special circumstances, and the introduction of a "cooling-off period" (withholding funds in a bank for several days). Agencies are coordinating the evaluation of judicial practices. Professional communities are also proposing new standards: for example, expanding notaries' rights to verify property histories and the seller's condition, strengthening banks' compliance with prohibiting "safe accounts," and developing recommendations for realtors when dealing with vulnerable owners.
Practical Recommendations for Buyers
To mitigate the "Dolina Effect" in a specific transaction, buyers should:
- Thoroughly verify the seller and the property: request a recent extract from the Unified State Real Estate Register (which reveals the chain of ownership and encumbrances), review title documents and discharge of encumbrances.
- Assess the seller's condition: meet in person, inquire about family and property status, analyze suspicious signs (sharp discounts, urgency, emotional cues).
- Conduct the transaction under the supervision of experts: engage an experienced lawyer and notary, arrange payments through a bank escrow or notarial deposit, where funds are only released to the seller after the registration of the transaction.
- Seek guarantees: involving the seller's relatives or guarantors in the transaction who can confirm the voluntariness of his consent and be prepared to return the buyer's money should the transaction be canceled.
- Consider title insurance: such a policy can compensate for paid funds in the event of subsequent invalidation of the transaction.
Practical Recommendations for Elderly Owners
To avoid becoming a participant in such a story, elderly property owners need to:
- Not trust suspicious calls: ignore messages supposedly from authorities and proposals to transfer money to "safe accounts" from strangers.
- Consult before selling: discuss terms with trusted relatives and a lawyer, avoid rushing transactions under pressure, and do not sign documents without understanding their contents.
- Securely execute transactions: wherever possible, conduct notarial certification and property inventory, and avoid granting broad powers of attorney unnecessarily.
- Utilize protective mechanisms: in consultation with close relatives, arrange for limited powers of attorney, guardianship, or restrictions on registered transactions without personal involvement. Also, consider drafting a will or a prenuptial agreement to determine the fate of the property in advance.
Possible Future Scenarios
If the current practices persist, the number of lawsuits and distrust will only grow: transactions will become more expensive and prolonged, and the segment involving elderly sellers may slow down. At the same time, authorities and businesses seek a balance of interests. Among the measures being discussed are the expansion of mandatory title insurance practices, the introduction of a "cooling-off period" (for instance, a week-long hold on funds in the bank), and the creation of centralized risk registers with mandatory checks on the psychological and financial status of transaction owners.
Conclusions
The "Dolina Effect" is not merely a one-time case of notoriety; it is a symptom of systemic vulnerability in the real estate market to fraud and legal uncertainty. Investors should keep in mind that real estate transactions require meticulous preparation and professional support, especially when the seller is vulnerable. Only a comprehensive approach—a thorough verification of the property, notarial oversight, careful organization of payments, and risk insurance—will help avoid costly losses. Without such measures, the "Dolina Effect" could impact nearly any homebuyer.
