Acquisition of rights to the investment object
From the point of view of investment activities, acquiring ownership rights to land plots is usually the most attractive option.
In many cases, acquiring state-owned land plots in Russia is practically possible only on the basis of lease rights, but long term land leases also give a comfort to investors. Investment agreements with state authorities are frequently used by foreign investors, under these agreements investors acquire the lease right to land within the construction period with the possibility of further acquisition of ownership in newly constructed immovable property object, as well as ownership in this land or long-term lease right thereto.
The following ways of acquisition of rights to the investment object are commonly used:
obtaining right to real estate land directly (lease rights, acquiring ownership rights on the basis of land plot sale and purchase agreements);
obtaining of ownership interests in the company owning the real estate;
conclusion of a construction investment agreement (financing of construction for the purpose of the investor's acquisition of ownership in newly constructed immovable property object or a portion thereof after the construction is completed);
conclusion of an investment agreement with the relevant state authority (lease agreement for the period of construction).
Investors are always seeking to obtain ownership rights to real estate. The main stages of the acquisition of rights to a land plot on the basis of a land plot sale and purchase agreement or lease agreement are as follows:
state cadastral registration of the land plot, which individualises it as the object of civil rights and the subject of a relevant agreement;
conclusion of a land plot of a sale and purchase or lease agreement;
state registration of the buyer's ownership right to the land plot or state registration of the land plot lease agreement. All rights (commence, change or terminate) to the real estate and transactions therewith are subject to state registration which is carried out on the basis of certain documents.
Land plot sale and purchase agreements are concluded in writing and signed by all the parties. These agreements must contain all conditions provided for by Russian law (an agreement not containing such conditions is deemed non-concluded), in particular, the price of the land plot and data that allow for the unambiguous identification of the land plot.
Another way of acquisition of rights to the investment object- obtaining of ownership interests in the company owning the real estate, is also frequently used. In certain cases while concluding transactions, foreign jurisdiction is used for the purpose of applying more advantageous taxation rules.
Entering into construction investment agreements is also a common practice, but there's a special need for investor's rights to be secured, because a certain time interval between financing and acquisition of the rights to the real estate exists; the provisions of the agreement related the investor's rights to strict control of all stages of implementation of the investment project are also should be stipulated.
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