Lawyer Pavel PetrovLawyer Pavel Petrov

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Realtor Bankruptcy in Russia: Fees, Advances and Transactions

Short answer: a realtor’s bankruptcy requires a clear separation of personal funds, fees and client money.Working as an agent, self-employed contractor or sole proprietor does not bar a citizen from filing, but mixing advances, deposits, security payments and pe for bankruptcy?

Yes. An employee, self-employed contractor, sole proprietor or citizen providing intermediary services uses the general personal-bankruptcy rules. The working model affects records, taxes, contracts and current liabilities but does not remove the right to file.

After completion, Article 213.30 of Law No. 127-FZ restricts taking new credit without disclosing the bankruptcy and participating in the management of legal entities. It contains no general ban on real-estate agency work. A realtor operating through their own company should separately review whether they may remain a director or otherwise participate in management.

Which funds may be disputed?

ReceiptPotential ownerBankruptcy risk
Contractual feeThe realtor once the right to payment arisesIncome supported by the contract and agent report
Advance for servicesDepends on performance and contract termsTermination may create a client repayment claim
Money to be passed to a seller or landlordDepends on the contract, authority and payment purposeA personal-account transfer makes ownership harder to prove
Deposit or security paymentA party to the proposed transaction under the actual agreementPoor documentation turns the issue into an ordinary monetary claim
Advertising, registry and viewing expensesThe realtor or client under the contractReceipts, instructions and use reports are needed

Under Article 1005 of the Civil Code, an agent acts at the principal’s expense either in the agent’s own name or in the client’s name. In the first model rights and obligations toward third parties arise for the agent; in the second they arise directly for the principal. Article 1011 applies mandate or commission rules as appropriate. Saying “this is client money” is therefore insufficient without the contract, authority, agent report, payment records and a traceable trail.

Safer practice: do not receive transaction-party money into an ordinary personal card without a clear contract and payment purpose. Bankruptcy does not cure earlier contractual uncertainty; it brings that uncertainty before the insolvency administrator and court.

What happens to ongoing client matters?

A realtor’s bankruptcy does not automatically cancel every contract. Review whether services were completed, the fee was earned, documents or funds must be returned and the agreement may be terminated. An unearned-advance repayment may become a creditor claim, while post-filing service income must be disclosed to the insolvency administrator.

Where the realtor is a sole proprietor, business debts and transactions are reviewed, but the citizen is the debtor. For self-employed activity, receipt history and tax receipts should match the contracts. Tax status alone does not turn client funds into the realtor’s own income.

Practical sequence

Classify each contract

Separate services, mandate, commission, agency, transaction support and information-only work.

Match funds to records

For every receipt, identify the payer, legal basis, fee, expenses and balance owed to the client or transaction party.

Complete client reporting

Prepare agent reports, acceptance records, self-employed or cash-register receipts, evidence of results and justified refunds.

Review personal-property transactions

Keep client matters distinct from sales of the realtor’s own property and transfers to relatives, which are reviewed separately.

Give the administrator a complete register

Disclose accounts, agreements and client claims, and separately substantiate amounts that do not belong to the debtor.

Records that reduce disputes

Contract file
Agreements, attachments, powers of attorney, deposit or advance terms, expense rules and fee conditions.
Money trail
Complete statements, the purpose of every payment, a separate client-money register and evidence of onward transfer.
Service result
Agent reports, acceptance acts, advertisements, extracts, viewing and negotiation correspondence and tax receipts.
Unfinished obligations
A list of current instructions, documents, keys, advances and repayment demands.

Frequently asked questions

May I work as a realtor after bankruptcy?
There is no general ban. Article 213.30 does restrict management of legal entities, so a model using the realtor’s own company needs separate review.
Will a client’s deposit enter the estate?
It depends on who is party to the agreement, who received the money and what authority was documented. Ownership is proved by records, not the transfer label alone.
What happens to an unearned advance?
The client may have a repayment claim. Its amount depends on the contract, actual services and documented expenses.
May the realtor keep earning fees?
Work may continue, but income and records are disclosed to the administrator. Control of receipts depends on the case stage.

Official sources

Related guides: working after bankruptcy and personal bankruptcy in Russia.

Do you hold client money or unfinished matters?
I can review the contracts and fund trail before filing to separate earned fees from third-party amounts and claims.
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