What is the "Dolina Effect" and why has it become one of the key risks in the real estate market in Russia and the CIS? An analysis of threats for investors, reasons for court annulments of transactions, and recommendations for buyer protection.
The term "Dolina Effect" entered common usage 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 (usually an elderly person) cancels the transaction through court after it has been completed, 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 this term has been documented in the media and even in encyclopedic sources: for example, in late 2025, Wikipedia published an article detailing this phenomenon (mostly related to cases involving elderly sellers).
History of the Term's Emergence
At the center of this narrative is the case of Larisa Dolina. In the summer of 2024, the singer sold her apartment in Moscow, but later transferred the proceeds to fraudsters (part of it via "safe accounts"), only to find out she had been deceived. In September 2025, a court declared the transaction invalid due to "vitiated consent" on Dolina's part (she was misled), returning the apartment to her, while the buyer lost both her home and her money. This resonant precedent served as a warning: similar stories began to emerge across the country. Sellers and their relatives started filing lawsuits to reclaim their properties, claiming they were misled. In the media and legal communities, this scheme became known as the "Dolina Effect," as a singular precedent turned into widespread fear in the secondary real estate market.
The Legal Essence of the Problem
The conflict of legal interests here is straightforward: on one hand, the protection of the "affected" seller's (especially elderly and vulnerable) rights to reclaim their property; on the other hand, the rights of the bona fide buyer to retain the acquired property. Since proving a criminal connection between the buyer and the scammers is usually impossible, courts often apply norms that protect the seller from misrepresentation or fraud. The primary grounds for recognizing a transaction as invalid are significant misrepresentation of the seller or fraud (Articles 178, 179 of the Civil Code of the Russian Federation).
- Courts frequently declare transactions involving vulnerable sellers as invalid under Articles 177-179 of the Civil Code of the Russian Federation (incapacity, misunderstanding, fraud).
- In practice, after a contract is contested, the buyer is often left without property, and the paid funds are rarely returned—often the money remains "frozen" until the criminal proceedings against the fraudsters are concluded.
- The courts' position is to protect the "weaker party" in the transaction: if it is proven that the seller acted "without understanding" (due to age, illness, stress, or pressure), the contract is dissolved, regardless of the formal legitimacy of its execution.
Scale and Consequences for the Market
The problem has reached far beyond a single case: in 2025, thousands of transactions across Russia were contested using similar schemes. Even if the official transaction numbers remain stable, market participants report a rise in anxiety. Buyers are shunning deals with suspiciously low prices or elderly sellers and demanding additional guarantees. Many secondary transactions are now accompanied by extra checks and conditions.
- In major cities, there has been a sharp increase in secure transactions: for instance, notaries in St. Petersburg reported that by autumn 2025, the number of transactions conducted through notary deposits more than doubled.
- Real estate agents note the increasing complexity of transactions involving "pensioner" apartments: certificates from mental health facilities, involvement of the seller's relatives, recording of video sessions, and detailed examination of documents are becoming standard requirements.
- There is a likely decrease in the liquidity of such properties: the market fears "volatile" offers, and homes belonging to pensioners are being sold at a discount or staying on the market longer.
Risks for Buyers and Sellers
- Buyer: loss of ownership rights (the apartment is returned to the previous owner), freezing of invested funds and mortgage obligations, long litigation costs, and reputational risks.
- "Seller" victim: the risk of losing both apartment and money (especially if funds were given to fraudsters), pressure from relatives and law enforcement, the need to provide testimony and participate in legal battles.
Government and Professional Community Response
The government has begun closely monitoring the situation. Legislative proposals and protective measures are under discussion 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 considered. Various government agencies are coordinating the evaluation of judicial practices. Professional communities are also proposing new standards: for example, expanding notaries' rights to check the property history and seller's condition, strengthening bank compliance (prohibiting "safe accounts"), and developing guidelines for realtors dealing with vulnerable owners.
Practical Recommendations for Buyers
To reduce the impact of the "Dolina Effect" in specific transactions, buyers should:
- Carefully verify the seller and the property: request a fresh extract from the State Register (which reveals the chain of ownership and encumbrances), study the title documents, and check for existing liens.
- Assess the seller's condition: meet in person, clarify their family and financial situation, analyze suspicious signs (sudden discounts, urgency, emotional distress).
- Conduct the transaction under expert supervision: involve a seasoned lawyer and notary, structure payments through bank escrow or notary deposits, where funds are transferred to the seller only after the transaction has been registered.
- Involve guarantees: whenever possible, involve the seller's relatives or guarantors who can confirm the voluntary nature of the seller's intent and who will be ready to return the buyer's money if the transaction is annulled.
- Consider title insurance: such a policy may reimburse paid funds if the transaction is later recognized as invalid.
Practical Recommendations for Elderly Homeowners
To avoid becoming part of such a story, elderly homeowners should:
- Not trust dubious phone calls: ignore messages "from authorities" and offers to transfer money to "safe accounts" from strangers.
- Consult before selling: discuss terms with trusted relatives and a lawyer, avoid making rushed decisions under pressure, and refrain from signing documents without fully understanding their content.
- Ensure reliable transactions: whenever possible, conduct notarization and inventory of property, and avoid granting extensive powers of attorney unless absolutely necessary.
- Use protective mechanisms: in agreement with family, establish limited powers of attorney, guardianship, or bans on registering transactions without personal involvement. Also, consider establishing a will or marriage contract to pre-determine the fate of the property.
Possible Future Scenarios
If current practices persist, the number of court disputes and mistrust will only increase: transactions will become more expensive and prolonged, 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's hold on funds in the bank), the creation of centralized risk registries, and mandatory checks of the seller's mental and financial status.
Conclusions
The "Dolina Effect" is not a one-time scandal but a symptom of the systemic vulnerability of the real estate market to fraud and legal uncertainty. Investors must remember: real estate transactions require thorough preparation and professional support, especially when the seller is vulnerable. Only a comprehensive approach—thorough verification of the property, notarial support, careful organization of mutual payments, and risk insurance—will help avoid costly losses. Without such measures, the "Dolina Effect" could affect almost any homebuyer.
