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, Causes of Court Cancellations of Transactions and Recommendations for Buyer Protection.
The term "Dolina Effect" came into use following a high-profile case involving the famous singer Larisa Dolina. This term refers to a fraudulent scheme where a seller of an apartment (typically an elderly person) cancels the transaction through the court, claiming to have been a victim of telephone fraud. This scheme allows the "seller" to regain possession of the apartment, while keeping the money paid by the buyer. The emergence of the term has been noted in media and even encyclopedic sources: for example, at the end of 2025, Wikipedia published an article detailing this phenomenon (predominantly associated with cases involving elderly sellers).
History of the Term's Emergence
At the heart of this story is Larisa Dolina's case. In the summer of 2024, the singer sold her apartment in Moscow, transferring the received money to fraudsters (part of it through "safe accounts"), only to later discover that she had been deceived. In September 2025, the court declared the transaction invalid due to "defect of will" on Dolina's part (as she had been misled), returning her the apartment while the buyer lost both her home and her money. This high-profile precedent acted as a signal: similar stories began to appear across the country. Sellers and their relatives started filing lawsuits to regain their homes, asserting that they had been misled. The media and legal communities began referring to this scheme as the "Dolina Effect," where a singular precedent transformed 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 hand, there is the protection of the "injured" seller's rights (especially elderly, vulnerable individuals) to reclaim their property, and on the other, the rights of the good-faith buyer to retain the purchased housing. Since it is generally impossible to prove a criminal connection between the buyer and the fraudsters, courts often apply norms that protect sellers from deception or fraud. The main grounds for declaring a transaction invalid are significant misrepresentation of the seller or fraud (Articles 178, 179 of the Civil Code of the Russian Federation).
- Courts often recognize transactions involving vulnerable sellers as invalid under Articles 177-179 of the Civil Code of the Russian Federation (incompetence, misunderstanding, fraud).
- In practice, after challenging a contract, buyers are left without property, and the money they paid is seldom returned — often, the funds remain "frozen" until the criminal proceedings against the fraudsters conclude.
- The position of the courts is to protect the "weaker party" of the transaction: if it is proven that the seller acted "without being aware" (due to age, illness, stress, or pressure), the contract is rescinded, regardless of the formal legality of the arrangements.
Scale and Consequences for the Market
The issue has extended far beyond a singular case: by 2025, thousands of transactions across Russia had already been challenged under such schemes. Even if the official transaction figures remain steady, market participants note an increase in anxiety. Buyers are now refusing transactions with suspiciously low prices or elderly sellers and are demanding additional guarantees. Many secondary transactions are now accompanied by extra checks and conditions.
- In major cities, there has been a sharp increase in safe transactions: for example, notaries in St. Petersburg report that by autumn 2025, the number of transactions through notary deposits more than doubled.
- Realtors are noting complexities in transactions involving "senior citizen" apartments: certificates from the psycho-neurological dispensary are now being introduced, along with the involvement of the owner's relatives, recording video sessions, and detailed document examinations.
- There is a likely decrease in the liquidity of such properties: the market fears "volatile" offers, and housing owned by pensioners is being sold at a discount or remains on the market for longer periods.
Risks for Buyers and Sellers
- Buyer: loss of ownership rights (the apartment is returned to the former owner), freezing of invested funds and mortgage obligations, lengthy court expenses, and reputational risks.
- "Seller"-victim: risk of being left without both the apartment and the money (especially if the funds were transferred to fraudsters), pressure from relatives and law enforcement, the necessity to provide testimonies and participate in litigation.
Government and Professional Community Response
The government has begun to closely monitor the situation. In the State Duma, bills and protective measures are being discussed: mandatory notarial certification of real estate transactions is being proposed, as well as mandatory insurance of apartments under specific circumstances, and the introduction of a "cooling-off period" (holding funds in a bank deposit for several days). Agencies are coordinating the assessment of judicial practices. Professional communities are also proposing new standards: for example, to expand the rights of notaries to verify the object's history and the seller's status, to strengthen compliance in banks (banning "safe accounts"), and to develop recommendations for realtors when dealing with vulnerable owners.
Practical Recommendations for Buyers
To mitigate the "Dolina Effect" in a specific transaction, buyers should:
- Carefully check the seller and the property: request a recent extract from the Unified State Register of Real Estate (which reveals the chain of ownership and encumbrances), study title documents, and check for encumbrances.
- Assess the seller's condition: meet in person, clarify their family and property situation, analyze suspicious signs (sharp discounts, urgency, emotional background).
- Conduct the transaction under expert supervision: engage an experienced lawyer and notary, arrange payments through a bank escrow account or notary deposit, where funds are transferred to the seller only after the transaction is registered.
- Seek guarantees: if possible, involve the seller's relatives or guarantors in the transaction who will confirm the voluntariness of the seller's intentions and be prepared to return the money to the buyer in case the transaction is cancelled.
- Consider title insurance: such a policy can compensate paid funds in the event the transaction is later declared invalid.
Practical Recommendations for Elderly Owners
To avoid becoming part of such a story, elderly homeowners should:
- Do not trust suspicious calls: ignore messages "from officials" and offers to transfer money to "safe accounts" from strangers.
- Consult before selling: discuss the terms with trusted relatives and a lawyer, refrain from making urgent transactions under pressure, and do not sign documents without understanding their content.
- Execute transactions reliably: whenever possible, conduct notarial certification and inventory the property, avoid granting extensive powers of attorney unless absolutely necessary.
- Use protective mechanisms: with the consent of relatives, establish limited powers of attorney, guardianship, or restrictions on registering transactions without personal involvement. Also, consider preparing a will or marriage contract to determine the fate of the property in advance.
Possible Future Scenarios
If current practices continue, the number of legal disputes and distrust is likely to increase: transactions will become more expensive and prolonged, and the segment involving elderly sellers may slow down. Meanwhile, authorities and businesses are seeking a balance of interests. Among the proposed 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 a bank), and the creation of centralized risk registers along with mandatory checks on the mental and financial conditions of the seller involved in the transaction.
Conclusions
The "Dolina Effect" is not merely a one-off case of notoriety but a symptom of the systematic vulnerability of the real estate market to fraud and legal uncertainty. Investors must remember that real estate transactions require thorough preparation and professional support, especially when the seller is vulnerable. Only a comprehensive approach — deep verification of the property, notarial accompaniment, careful organization of payments, and risk insurance — will allow avoidance of costly losses. Without such measures, the "Dolina Effect" could affect virtually any homebuyer.
