Article 8.1. The State Registration of Property Rights

1. Where it is provided for by law, the rights assigning the ownership of an object of civil rights to a particular person, restrictions of such rights and encumbrances of property (of the property right) are subject to state registration.

The state registration of property rights shall be effected by the body authorised under law on the basis of the principles of verifying the lawfulness of the grounds for registration, publicity and reliability of the state register.

In the state register shall be cited the data enabling to identify without fail the object in respect of which the right is established, the authorised person, the content of the right and the ground for its origination.

2. The rights to the property which is subject to the state registration shall originate, shall be changed and terminated from the time of making the corresponding entry in the state registration, unless otherwise established by law.

3. Where it is provided for by law or agreed by the parties, a transaction entailing the origination, alteration or termination of the rights to property which are subject to state registration shall be attested and certified by a notary.

An entry shall be made in the state register where there are applications for it filed by all the persons that have made a transaction, unless otherwise established by law. If a transaction is concluded notarially, an entry may be made in the state register on the basis of an application of any party to the transaction, in particular through a notary.

4. If the property right originates, is changed or terminated as a result of the occurrence of the circumstances provided for by a law, an entry on the origination, changing or termination of this right shall be entered to the state register on the basis of an application of the person for which such legal effects occur. A law may also provide for the right of other persons to file an application for making the corresponding entry to the state register.

5. The body engaged in the state registration of property rights which is authorised by law shall verify the authorities of the person that has filed an application for the state registration of a right, the lawfulness of the grounds for registration, other circumstances and documents provided for by law and, where is provided for by Item 3 of this article, also the occurrence of the corresponding circumstance.

If the property right originates, is changed or terminated on the basis of a transaction attested and certified by a notary, the body authorised by law is entitled to verify the lawfulness of the corresponding transaction in the instances and in the procedure which are provided for by law.

6. A registered right may only be disputed judicially. The person cited in the state register as the right holder shall be recognised as such, unless otherwise noted in the register in the procedure established by law.

Where there is a dispute in respect of a registered right, the person that knew or should have known about the unreliability of the data contained in the state register is not entitled to make reference to the corresponding data.

7. A note may be made in the state register in respect of a registered right in the procedure established by law about the objection of the person whose corresponding right has been registered earlier.

Within three months as from the date of making a note in the state register on an objection in respect of a registered right the person on the basis of whose application it has been made did not dispute the registered right judicially, the note on the objection shall be cancelled. On such occasion, it is not allowed to repeatedly make a note on the objection of the cited person.

The person disputing a registered right judicially is entitled to demand making in the state register a note on the existence of a judicial dispute in respect of this right.

8. The denial of the state registration of property rights or evasion of the state registration thereof may be disputed judicially.

9. The losses caused by an unlawful denial of the state registration of property rights, by evasion of the state registration thereof, by entering to the state register unlawful or unreliable data on a right or by breaking of the procedure for the state registration of property rights stipulated by law through the fault of the person engaged in the state registration of property rights are subject to reimbursement from the treasury of the Russian Federation.

10. The rules provided for by this article shall apply, unless otherwise established by this Code.