WHAT HAVE BEEN THE EFFECTS OF REAL ESTATE LAWS OVER TIME AND WHAT PROBLEMS, SOLUTIONS HAVE THEY CREATED?

Research objectives:

• Using an institutional approach to describe the real estate market in Russia
• Describe the work, as well as evaluate the work of the institute of private property in the country
• Evaluate the work of all institutions that participate in the real estate market
• To identify the factor, then what and how can we evaluate the work of institutions
• To form a conclusion and identify an omission in the formation of the real estate market

The real estate market began its legal path only after the adoption of the laws of the Russian Federation "On Privatization of state and municipal enterprises"[2] and "On privatization of housing stock"[2] in the summer of 1991, that is, in fact, from the end of 1991 to the beginning of 1992, the real estate market, due to instability and the need for significant one–time costs, was practically not considered in the first half of the 90s.x years, as a sphere of long-term investments. The main method of settlement was cash payment, and, as a rule, in freely convertible currencies without their tax declaration.

The absence of the necessary legislative norms and procedures to ensure the safe execution of transactions and the protection of property rights. This has led to a number of consequences affecting the state of the market. Among such consequences are:

• The initial ease of transactions in the residential real estate market, which contributed to the rapid growth of their number
• The possibility of violating the rights of potential real estate users, the lack of mechanisms to protect their interests during transactions, which subsequently led to lawsuits, arrests of real estate, prohibitions of transactions with it, etc. Therefore, real estate firms are not willing to undertake transactions with apartments with long sales histories, rightly believing that the more transactions with an apartment have occurred, the greater the likelihood of a "puncture"[2] at any stage of this story
• Conducting real estate transactions under the guise of transactions with securities, shares, shares of enterprises (primarily those that have passed through privatization procedures).
• Conducting transactions in direct violation of the law and the interests of the participants in the transactions. The latter is especially characteristic of the pre-privatization period, but it is quite common during the privatization period

At the beginning of the formation of the real estate market in Russia, there was a lack of necessary financial and market infrastructure for its smooth functioning. The housing and construction financing and lending system that existed during the Soviet period had already collapsed by the beginning of 1992, which made it difficult for people to buy real estate as they needed cash in freely convertible currency. In the first half of the 1990s, the formation of price levels in the housing market in major cities of Russia was primarily driven by the demand from the wealthiest people in the society. Due to the accelerated and poorly established privatization procedures, the absence of mechanisms for verifying the legal status and legal history of real estate objects, and the undeveloped procedure for securing rights to real estate, transactions in the early 1990s were facilitated, and there was an emerging demand for real estate services.

This led to the emergence of the first real estate firms at the turn of the 1980s and 1990s, which performed various functions that were previously distributed among different professional market participants such as consultants, lawyers, appraisers, and real estate experts. However, this also created potential dangers for future real estate firms, as they may not be able to compete with professional lawyers and appraisers who later entered the market. Despite their expertise in market knowledge, high-quality services for searching for properties, and information of counterparties, their skills were not fully developed.

After conducting a thorough analysis of the current situation, it can be concluded that there is no single market for real estate objects as defined in the Civil Code. Rather, there are markets for individual elements of real estate, such as apartments, offices, and industrial premises, which have contributed to the formation of disparate prerequisites for the real estate market.

Furthermore, there is no national policy for the formation of legal and economic conditions for the real estate market in Russia. A unified system for state registration of rights to real estate and transactions with it is still in the process of being formed. Local law prevails in determining the composition and size of fees, rental rates for land and other real estate, and regulating transactions with it. The guarantees for the rights of a bona fide acquirer of real estate are minimal, which contributes to the criminalization of the real estate market. Additionally, the conditions for activity in the real estate market are "opaque," [5]  making it difficult to determine the market value of real estate effectively.

The lack of coordination among the executive authorities responsible for regulating the real estate market and real estate management is another issue. Different real estate market sectors have different rules and procedures for their involvement in circulation, leading to confusion and inefficiencies.

The monopolism of government authorities, state and municipal commercial organizations has a negative impact on the development of the real estate market. A particularly difficult situation has formed at the level of municipalities, where the reason for the preservation of the monopoly is the disorder and complexity of the procedure for registration of rights to the development of land plots. It is necessary to obtain numerous approvals with various departments of the administration and municipal enterprises even before the start of construction. We add to this the requirement of pre-payment of numerous fees and services, the level of which is unknown in advance, is established during the execution of the transaction.

As a result, inequality of economic conditions of activity develops, free access to land is restricted and the normal course of reproduction of real estate is disrupted.

In the public consciousness, real estate is still identified with a free benefit from the state. This stereotypical approach is equally inherent in both the population and those in power. The population has not yet realized that together with the acquisition of ownership, use and disposal of property, it has become not only a direct and equal participant in market relations, but also acquired responsibilities for the maintenance of real estate. The authorities more often consider real estate as an object of additional costs justifying the preservation of inter-budget transfers, and not as investment capital.

It was necessary to create effective legal and organizational mechanisms for the development of mortgage lending in the Russian regions, creating conditions for citizens to purchase housing with loans secured by an apartment being purchased as the main way to solve the housing problem.

Despite the existing problems in the real estate market, transactions can still yield significant profits. However, to eliminate criminal activities and promote the efficient use of real estate, a law on licensing the activities of professional real estate market participants is necessary. This will ensure that all professionals operating in the market are qualified and held to a certain standard.

Moreover, an urgent need for a law on the real estate market exists, which should define common concepts and terms, real estate market objects, its professional participants, and the standards of their activities, as well as the framework for state regulation of the real estate market. Such a law will create a common understanding of the real estate market and facilitate its development by promoting transparency and standardization of market operations.

The institution of private property has been formed throughout all stages of the existence of our society, its formation was accompanied by regular wars, external and internal social conflicts, as well as various ideological and religious factors. All of the above also affected our country (Russia). 

Property law, private property institutions are designed to settle a number of issues and problems from various types of relations, areas that are somehow (indirectly) related to the object of research. It can be said that this is primarily the relationship between society and the state as its actions have had an impact on the market.

Any reasonable investor seeks to properly diversify his investments and capital in order to prevent the risks associated with long-term construction and bankruptcy of developers, buy real estate for resale, and deliberately take the risk of double sales. However, as practice shows, Russian legislation does not provide for the regulation of relations between the bidder and the offer, since there is a semi-legal scheme, in fact fraud. That is why, if we believe that the legal aspects of acquiring real estate in Russia are rather undeveloped, and we want to be more transparent, we could identify a problem for real estate investors. Buying at a lower price is becoming more and more threatening, as we consider the possibility of not receiving a profit from the invested capital and even the property as a whole. Although, if we buy a property that has already been built, it poses a high level of risk for the investor to become a victim of fraud and, consequently, lose everything (both assets) [3].

George A. Akerlof in his study The Market for "Lemons"[3]: Quality Uncertainty and the Market Mechanism [19]. This work explores the relationship between quality and uncertainty in market theory. The existence of numerous varieties of goods presents significant challenges in market theory. Analyzing differences in quality under conditions of uncertainty can explain important institutions in the labor market. However, this paper aims to highlight that conducting business in underdeveloped countries is a difficult task, particularly in determining the economic price of goods and dealing with unfair behavior. The theory also has applied aspects in areas such as the structure of money markets, the liquidity of durable goods, and the use of brand names [3].

In markets where buyers rely on market statistics to assess the quality of goods they intend to purchase, sellers are incentivized to offer low-quality products since high-quality goods contribute to the reputation of all sellers in that market. This tendency towards low-quality products leads to a decrease in both the average quality of goods and the size of the market. It is essential to note that public benefits and private benefits in such markets do not coincide. Therefore, government intervention may be necessary to increase the welfare of all participants in transactions. Private institutions may also emerge to improve the well-being of all market agents. However, these institutions tend to be non-atomistic, leading to the concentration of economic power and all the negative consequences that follow from it [3].

The raised problem and its description are applicable to the Russian real estate market, namely to the period of its formation and up to 2018, the period when key amendments to the country's legislative framework were not yet adopted, the period when, due to the imperfection of laws, many construction companies resorted to equity participation for the sake of personal interests, when ordinary people acquired part of the future the property, and as a result they were deceived, about the company closed. This is completely similar to what George A. described. Akerlof, when not honest companies, hiding behind the general reputation of the market, also resorting to similar, related names, large and conscientious firms, used this as a way to get easy money from low-erudite citizens.

From the above historical information, it is worth understanding that the state has not been actively involved in monitoring and supporting the real estate market for a long time, which contributed to the number of deceived people.

 Federal Law No. 214 was signed in 2004, although there were some shortcomings regarding the regulation of capital and its illegal use [24]. Therefore, the government decided to make some amendments to it in order to protect owners from such risks. Despite this, there is another important issue concerning the law on the regulation of relations between shareholders and developers, which changed the form of the contract and obligations for both of them, of course, in a rather strict form [6]. The main prerequisite for the emergence of legal norms was the transition to the formation of federal Law No. 214, containing the above-mentioned definition of defrauded shareholders. The urgency of this issue was reinforced by the inability of the developer to fulfill its obligations to implement the shared-equity construction project. The government has made a lot of efforts to regulate this problem, it is still quite acute and has not been closed, therefore, the process of amending the housing Code (relating directly to the Institute of Law and Private Property, as well as indirectly to the Institute of Economics) was carried out in 2019, with the formation of a ban on direct shared-equity construction and the formation of an intermediary mechanism by banks as a third party.

The evolution of laws, numerous amendments that try to prevent opportunism, when unscrupulous construction companies with the help of cunning (deception) receive money from citizens. Akerlof suggests that we should be aware of opportunism, that it will always be impossible to get rid of it [3]; Williamson in his model [3] suggests ways to cope with this (the model assumes that enterprise managers promote the adoption of internal corporate policies that maximize their individual usefulness more than the owners of the enterprise [18]. However, managers are limited by the fact that they are obliged to provide a minimum income to shareholders. Managers derive their usefulness from their spending because it is their source of security, it reflects their status, power, prestige and professional achievements).

The evolution of laws and numerous amendments aim to prevent opportunism, where unscrupulous construction companies use deception to obtain money from citizens. However, Akerlof suggests that opportunism will always exist, and we should be aware of it. In contrast, Williamson's Discretionary Management Model proposes ways to address opportunism. The model assumes that enterprise managers prioritize the adoption of internal corporate policies that maximize their individual usefulness, even more than the enterprise owners. However, managers are constrained by the obligation to provide a minimum income to shareholders. Managers derive their usefulness from spending, as it reflects their status, power, prestige, and professional achievements, which are the sources of their security.

For NIE, the state simply protects property, contract, and the rule of law. For a political economy, the state may have its own interests, and we should be aware of the possibilities of the state.

The conclusion from the above is a confirmation that the Russian market is still at the stage of development, and there are still a sufficient number of controversial points and aspects that remain floating.  Decision-making (amendments to laws) is rather slow and does not bring benefits, benefits for the citizens of the country. The decision of the state, its work as an institution, the adopted amendments only worsened the situation of citizens, this is primarily an increase in the value of real estate, due to innovations and amendments to the law, the starting price of real estate has increased enormously, this has affected the additional costs incurred by construction companies.

Potential participants, buyers (individuals, as well as a huge number of legal entities who already have objects of property rights in their vision, in order to obtain economic benefits from conducting economic activities) are forced to make transactions and interact with market players, buy or, in other words, acquire ownership [6].

The chosen field of research is primarily related to the specifics, individual properties that are of a mixed nature and affect several institutions of law, economics, and the state at once, on the one hand, a real estate object is a consumer product, a good that everyone needs, and on the other hand it is an element of investment, an economic unit.

Based on the above, the main question of the study is formed. What are the effects of real estate laws over time and what problems, solutions have they created? Do real estate laws really solve real problems (such as transaction costs, which will be discussed below)

In the doctrine of institutional economics, one of the pillars is that the key role of the institution for us, for society, is to reduce uncertainty in people's lives by implementing a stable system of interaction between members of this society. Creating a stable structure is a long process that goes through a large number of stages, stages. As a result of institutional changes, there was a transition from the first step to the second. We can outline many such schemes that define the mechanisms and types of institutional changes. Although their wide variety can be divided into 3 main groups: incremental, evolutionary, and revolutionary [11].

The development of institutionalism as an economic theory is associated with the active activity of scientists who support the fundamental direction in science, such as K.Galbraith, T. Veblen, J. Commons, R.Coase, D.North, I.Schumpeter, Edelstein R., Qian W. and Tsang D. Hau.

To describe the first group, we could use an example of image, since the type of institutional changes, given its inevitable genetic inclusiveness, cannot be singled out for the conversation as a whole, which means that the leading mechanisms of the configuration of the institutional structure of the country are considered to be the evolution of institutions inside and their use from the outside. In other words, using the experience and practice of other states and organizations, importing their practice for yourself, and adapting and transforming it in accordance with the specifics of your society and its features [4]. The evolutionary path of formation consists mainly in the legalization of informal restrictions, i.e., in ensuring universally recognized standards, which, of course, are based on them, have the force of law and really make such restrictions formal. But the evolutionary doctrine confirms the conclusion that, in fact, inefficient universities die over time, while effective ones endure all difficulties and develop, and not all evolutionarily formed institutional committees and organizations are considered effective in accordance with the aspect of minimization of transaction losses. The crucial point in understanding the evolutionary class is the reflection in the written law of customs and trends based on traditions, and in fact we do not see any guarantees of this. In fact, the habits adopted yesterday will come into the space when making transactions now. A paradox similar to the inertia of evolution has been called the effect of historical conditionality, i.e., yesterday's institutional framework remains important and limits opportunities now and, in the future [4].

An analogue, so to speak, a substitute for institutional evolution can be considered revolutionary institutional configurations of its transformation, which represent an exogenous borrowing of institutional practices and experience of organizations. We are talking about external consumption, the import of formal organizations that have already proven their effectiveness and competence, and this happens in society - informal organizations are accepted as the last payment [4]. The triumph of the "import" of institutions depends on the extent to which the sample, the source of consumption is compatible with the formal and informal borders existing in the country, within which it will be obliged to act. Thus, none of the institutional changes taking place in the nuances of the dynamics of transaction losses is considered a panacea. The development of any society is accompanied by the emergence of an institutional system as a specific ordered set of organizations. Although such a system, being the result of an evolutionary process, is not always able to provide universities with the progressive movement of society by reducing transaction losses. Inefficient informal measures, ironically, generally recognized and legalized because of this phenomenon, lead to the introduction functioning universities, formal ones, into the institutional system of the state. In such a history, the main moment determining the subsequent fate of society is considered to be the degree that a certain norm occupies in the resulting institutional hierarchy.

Private property is the basis of the market economy, I am the dominant system in our world and an important component of our society, it can be considered a connecting link, generalizing, a set of all markets, which covers all elements of the life of our society.

The real estate market, like any market, is an important part of the market system and the economy as a whole, a system without which we cannot achieve full completion, which our country is currently demonstrating, the market is still being formed, but too slowly. From the above it becomes obvious that an important component is the institution of private ownership of such property as land, house, apartment, etc., as a result of which it is the fundamental basis necessary for the existence of an effective market system functioning on the basis of the developed methods of modern economics, as well as the definition of stable and appropriate levers of influence and regulation. Without the above, it is impossible to ensure high-quality functioning.

— H1: When there is little regulation and transparency in the real estate markets, then there will be opportunism (“lemons"[3]).

— H2: Government regulation of transparency and anti-fraud has little effect on fraud if there are no institutional enforcement mechanisms. This is from the field of political economy. For example, transparency laws should provide for means of accountability: the ability of someone to sue a fraudster, or a special police unit to combat fraud, or something else.

— H3: How do transaction costs from the acquisition of property rights affect purchasing power parity

During the search for information and data collection, there is simply no data on this area from the state and its institutions, all information is collected from the summaries of analytical agencies and databases in order to estimate the costs incurred in concluding contracts, purchase, and sale agreements. From the initial analysis, it follows that in Russian realities they are too high due to the costs associated with the work of realtors, the costs associated with tax fees and payments, as well as the shortcomings of the legal system and its imperfections, as well as mortgage, credit policy of central and private banks.

At the beginning of 2015, the number of defrauded shareholders in Russia is more than 70 thousand people. At that time, 684 problem objects in 62 regions of Russia are under the control of the working group. In total, 1763 problem houses were completed in 2007-2014, in which more than 175 thousand families received apartments.

In July 2017, a new Federal Law was adopted to solve this problem, designed to replace the outdated No. 214-FZ. No. 218-FZ "On a Public Law Company for the protection of the rights of citizens participating in shared-equity construction in the Event of Insolvency (Bankruptcy) of Developers and on Amendments to Certain Legislative Acts of the Russian Federation" entered into force January 1, 2018. The law was adopted despite the resistance of a number of regional developers, who considered the new legislative requirements for them too strict.

In addition, a Fund for the Protection of the Rights of Citizens Participating in shared—equity construction was established in October 2017. Its new operator, the state corporation “AHML House” of the Russian Federation, reported that on its official page, what will happen to shareholders who have already bought housing and do not fall under the newly created protection mechanism through the fund. According to the new scheme, the regional authorities submit to the Ministry of Construction of Russia an approved list of measures to solve the problems of defrauded shareholders with an indication of the deadlines for each object. Information and statuses of events in the schedules will be updated quarterly. Thus, the dynamics of the implementation of measures for each facility will be available to all citizens." [18]

According to the decree of the Government of Russia dated 26.05.2017 No. 1063-r, the obligation of the subjects of the Russian Federation to provide the Ministry of Construction of Russia with a regional schedule (road maps) for the implementation of measures to solve the problems of citizens included in the register of defrauded shareholders was approved. Deputy governors have been appointed responsible for their implementation. To track information about the number of problematic objects and citizens falling into the category of "deceived interest holder"[18], as well as to inform the public, a specialized functionality was created on the agency's website in the form of an interactive map of Russia [18].

In 2020, the Foundation for the Protection of the Rights of Citizens Participating in Shared–Equity Construction restored the rights of more than 46 thousand shareholders. These are citizens who have purchased housing in 456 problematic objects with a total area of 3.4 million square meters. meters.

• The number of houses for which the decision to complete construction has been made has increased 4.5 times: from 82 to 367 in 2020 – and, accordingly, there have been more shareholders – from 8 to 33.5 thousand citizens who will receive their housing thanks to the activities of the Fund.
• Compensation was paid for 89 houses with a total area of 1.2 million square meters, and with the help of the mechanisms of the Rights Fund, more than 12.5 thousand citizens were restored in 2020.
• The number of meetings held by the Supervisory Board has increased 7 times. In 2019, 3 meetings were held, in 2020 this figure increased to 21 meetings.
• In 2020, the Foundation completed the construction of 17 facilities, which is 3 houses more than in the previous period.

The Foundation is actively working to prevent the appearance of affected citizens. At the moment, the Fund's specialists have identified 1,385 objects with the risk of deceived shareholders, which is 15.5% of the total number of housings under construction. In total, as of 01/18/2021, there are 2,828 houses in the unified register of problem objects, of which 1,466 objects are in the work of the Fund, which is 52%[18].

The above confirms the first revealed hypothesis that in the absence of proper control and a legislative framework, opportunism will flourish in the market, and indeed it is so for the period from 2007 to 2017, the number of defrauded shareholders steadily grew upwards. A significant date in solving this problem can be considered 2017, the creation of an institute on the basis of the state, which recognizes to help deceived people either to help return the money, or to complete the facility at the expense of the funds allocated by the state [18].

As mentioned above, the chosen method of evaluating institutions is transaction costs. Based on this, it is advisable to produce and illustrate price changes for each of the institutions that are related.

Starting from the Institute of Economics, the developer, and the buyer act as participants, this is primarily a combination of all interactions of participants in economic relations, it is also worth mentioning that the state also participates, but it will be discussed separately [5].

During 2020-2021, the prices of primary real estate in Russia experienced a significant increase due to high demand, the launch of a preferential mortgage program, and a temporary reduction in supply on the market. Another factor that contributed to the price increase was the significant rise in the cost of construction materials and construction and installation works, which accounts for about 50% of the market value per square meter. According to Rosstat, the average price of housing surged by almost 23% per 1 square meter for the 12 months ending on August 31, 2021[8].

But due to recent events, the COVID-2019 pandemic, the real estate market has risen in price significantly. This is the first time when the Central Bank of Russia raised the interest rate on loans, also in February 2022, with the introduction of new sanctions, the real estate market almost completely stopped working, the cost of building materials increased two or three times and the question arose with logistics, creation new ways and means of acquiring building materials. The decision of the Bank of Russia also had a strong impact, banks are forced to issue mortgage loans at 18-22% per annum instead of 9%, as it was at the end of 2021 [13]. Given the fact that at the beginning of March 2022, the preferential mortgage was about 7-12% and the decision taken by the Bank of Russia to reduce the rate to 9.5% also did not contribute to stimulating the market, potential buyers developed distrust, fear of acquiring an object of property rights [13].

So, on June 8, 2022, the average rise in price per square meter of real estate in Moscow and St. Petersburg amounted to 80 thousand rubles for new buildings and 50 thousand rubles for the secondary market (the cost of the 1st square meter for primary objects is 250 thousand rubles and 220 thousand rubles for the secondary market) [1].

The statements of the government and the central bank on postponing and minimizing the damage from the new sanctions cannot be considered as what normalized the situation on the market, the increase in real estate prices amounted to 27% in large cities, which is almost a third of the prices at the end of 2021 [24]. Purchasing power parity has fallen to record levels. As a result, it should be understood that the citizens of the country, a group of them have lost the opportunity to purchase apartments, improve their social situation, purchase an apartment of a larger area than it is now, or simply move away from their parents, as well as give up rented housing in favor of a mortgage and subsequent acquisition of property rights.

As for the transaction costs associated with the acquisition of the object of property rights. Realtor services will cost 2-6% of the transaction value for 2022 [17] when in 2021 the maximum cost was 4% of the transaction amount, and there is also an increase in prices for services in this area. The realtor's services include apartment search, transaction support, as well as preparation of documents and verification of the object for legal purity. For ordinary people, these are additional expenses that contributed to the purchase, also helped people not to be deceived, with a high probability many will refuse, which will increase the risks [16]. At the end of 2020, the share of sales with the services of private realtors or realtors provided by the developer amounted to 70% of all sales in the country.

This type of cost contradicts Williamson's Theory of economic management and is an essential element of the New Institutional Economics (NIE), a new branch of economic thought developed by Williamson. The NIE assumes that the driving force behind the decision to prefer one management option over another is the desire to save on total costs. According to Williamson's NIE/Transaction Cost Economics (TCE) approach, the total costs of goods and services must include all costs associated with drafting, monitoring, and enforcing contracts, as well as the elimination of contractual hazards inherent in transactions (such as unfinished contracts). Therefore, the Williamson NIE/TCE approach analyzes the characteristics of each transaction (its main unit of analysis) to determine which management option is best suited [19].

But it is worth understanding that in many ways potential buyers are little erudite in the matter of purchasing real estate, as well as related legal issues, and the work of realtors in Russia can be assessed as the fact that buyers shift responsibilities to more competent persons in this matter.

Notary expenses are those institutions that simply cannot be abandoned, and people will be forced to turn to them, in any case, by 2022, the cost of completing a purchase and sale transaction will be more than 50,000 rubles between relatives and no more than 100,000 rubles between third parties (developer and consumer). This institution is strictly regulated by the state, the increase in prices for the provision of services does not exceed the value of annual inflation, the current situation is frozen, prices are fixed until the end of 2023. This decision, on the contrary, facilitated the conclusion of transactions on the secondary market and transactions at the level of relatives [14].

Notary expenses can be used to cover government expenses (reduces taxes), this was due to the fact that in the 1990s the state did not competent authorities have been created and the state has simply shifted its work to third parties.

The purchase of third-party documents will amount to no more than 0.002-0.01% of the cost of the apartment, since all instances are controlled by the state and regulated from the minimum wage (13,890 rubles), which makes this type of service available to all citizens.

As for the property tax, it is 13%, if the object of property rights is worth no more than 5 million rubles, if more, the tax will be 15%, while 5 years are given to pay the tax, which can be noted as a plus. But what about such large cities as Moscow and St. Petersburg, where the minimum cost of an apartment already exceeds 5 million rubles[online]^[1]. It is worth clarifying that we are not talking about apartments with an area of 18 square meters [24] designed for one person, we are talking about families where at least two parents and one child, and the minimum living area in this case will be 54 square meters, that is, families wishing to purchase an apartment are subject to 15% tax, and not 13%, as in other regions. It can also influence people's decision about the expediency of buying an apartment [12].

In conclusion of this part, I would like to note that at the end of this year, the issue of buying an apartment is quite acute, the price increase averaged 27%, and transaction costs - 22% at the beginning of 2022, against the background that in 2021 apartments were cheaper, and costs were 17%.

In conclusion of the study, I would like to draw attention once again to the hypotheses outlined at the beginning of the work. The institution of private property has made a huge leap since its existence, meets the needs of the population, despite the fact that the amendments were adopted for a long time and untimely. The work of other institutions leaves much to be desired, they simply could not contain the price increase and maintain accessibility for the population, and some of them cannot be abandoned, and people are forced to use them, even if they become more expensive. Thus, such a type of service as a mortgage broker has ceased to exist in Russia.

The main conclusion can be considered that transaction costs are a method of evaluating the work of institutions, yes, it really is. Transaction costs and their growth in Russia have a negative impact on the purchasing power of the population.

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