Experiment details "blockchain registration" of real estate transactions in Moscow

2018: Experiment details "blockchain registration" of real estate transactions in Moscow

A number of details of the forthcoming experiment of Rosreestr about "blockchain registration" of real estate transactions in Moscow became known. The corresponding materials of department were at disposal of Kommersant. According to the edition, an experiment starts in the capital on May 14, 2018.

In its framework two innovation systems will be tested. First, it is special "blockchain register" of transition of the property rights. It will work at a basis of Ethereum technology and to represent the copy of a certain part of data of EGRN. The Ministry of Economic Development, FTS and the Government of Moscow will become holders of the so-called "the certifying nodes" of the new register. Consultants for information security — the FSO, FSB and FSTEC.

Through certain time after start "blockchain register" will carry out its "stress testing": there will make up to 300 million additional records. According to the results of an experiment specialists should estimate several aspects of its work at once:

• invariance of data;
• performance;
• need for computing powers;
• need of additional protection.

In case of success a new system can become an alternative to "traditional" EGRN.

Secondly, the experimental system of legal examination of documents submitted for registration of transition of the property rights will be tested. Its main feature — use of so-called "technologies of the automated decision making", including smart contracts. A system will begin to draw a conclusion about a possibility of registration of the transaction on rules of operation of state loggers and on the basis of the analysis of the entrusted external data and data of Rosreestr. As options of implementation of technology the most popular blockchain platforms in the market are considered Exonum, Corda or Hyperledger .

In parallel the same operations will be performed by the staff of department of Victoria Abramchenko. If opinions of a system and the person disperse, similar cases will be studied for completion of algorithms of "automatic" legal examination.

The edition especially stipulates that the experimental technology will be applied only to examination of transactions of certain types:

• purchase of the real estate by natural persons from legal persons with attraction of the credit,
• signing of the contracts of participation in shared-equity construction (DDU) with attraction of a mortgage loan;
• registration of the property rights to the apartment received on DDU after input of the house in operation (besides on condition of primary market purchase in a mortgage).

2017: Draft resolution

The Ministry of Economic Development developed a draft resolution of the Government of the Russian Federation on carrying out in Moscow of an experiment on use of a blockchain for the purpose of monitoring of reliability of data of the Uniform State Real Estate Register (USRER). The document was published on the official portal of projects of regulatory legal acts in October, 2017^[1].

Initiators of the project calculate that use of a blockchain will allow to make more available data of EGRN, will raise the trust level of citizens to the sphere connected with turnover of real estate units and will provide guarantees of protection of the property right of citizens and legal entities for the real estate units located in the territory of Moscow.

The experiment is going to be made during the period from January 1 to July 1, 2018' (a photo - topjk.ru)'

According to the results of an experiment of the power expect to define efficiency and effectiveness of use of a blockchain when maintaining EGRN, state registration of the rights to real estate and transactions with it, the state cadastral registration of real estate and providing the data which are contained in EGRN.

In case of positive results of an experiment it is also necessary to handle an issue what changes need to be made to regulatory legal acts for permanent use of this technology.

Rosreestr, FTS and the Government of Moscow are designated authorized for carrying out an experiment by executive authorities. Participants of an experiment are also Vnesheconombank, Sberbank and Rostelecom. The Government of Moscow acts in an experiment as the operator. Other specified organizations – as validators.

Also in an experiment the role of auditors is supposed. The citizens and legal entities on a voluntary basis who confirmed the participation in an experiment at connection to an information system can become them.

The operator within the experiment provides placement of data on real estate units in an information system and access of validators and auditors to these data. In turn, validators provide the certificate of data, and auditors perform monitoring of their reliability using an information system.

The experiment will be made as it is specified in the document, within the budgetary appropriations provided by Rosreestr and FTS for 2018 financial year "the management and management in the field of the set functions".

Notes