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Home » Services » Real Estate & Construction » Land Rights

Land Rights

Owners of the buildings, houses or constructions have an exclusive right to privatize underlying state or municipal land plots or to acquire a land lease right in accordance with Land Code.

However, the term of such lease can not exceed 49 years.

Owners of properties have the right of permanent (perpetual) use of the part of the underlying land plot unless otherwise provided for by the laws, the agreement with the owner or the decision on the conveyance of the state or municipal land plot.

If the right of ownership to the buildings, constructions or other kind of real property ("properties") situated on the land plot owned another person is transferred to a new owner, the latter acquires the right of the use of the corresponding part of the land plot on the same terms and in the same scope as the former owner of the real property. Exceptions to this rule are established in the federal law "On Enactment of the RF Land Code"  where, for instance, the buyers of properties located on the land plot will have either to lease or purchase the plot instead of keeping the previous right of the permanent (perpetual) land use.

The transfer of the right of ownership to the land plot is not a ground for the termination or modification of rights to use of this land plot belonging to the owner of properties situated on this land plot.

Certain procedures and limitations are applicable to sale and acquisition of "ownership shares" of agricultural land, including pre-emptive rights of other owners and state, obligation for notifying other owners and state bodies about sale.

Land Titles, Rights and Limitations for Non-Russian Persons.

According to the Russian land legislation foreign citizens, individuals without citizenship and foreign legal entities (hereinafter the "non-Russian persons") may acquire and possess land plots in Russia subject to with certain limitations.

One of the main limitations applies to agricultural lands of foreign legal entities, foreign citizens (also apatrides) and Russian companies, having more than 50 % of their charter capital owned by foreign companies or foreign citizens (or apatrides), may possess Russian agricultural lands only on the basis of lease, for a term of not more than 49 years.

Moreover, the owner must sell the agricultural land plot, if according to the law the owner cannot hold ownership right to it.

Non-Russian owners of buildings, houses, constructions (hereinafter - the "real property") are entitled to acquire ownership title to underlying state or municipal land plots. In this case the ownership title may be obtained only for a fee at the statutory rate set by the Land Code. Non-Russian owners of the real property located on a private land plot have pre-emptive right of buying or leasing the underlying land plot, however the RF President may adopt a list of types of the real property not covered by this rule.

Non-Russian persons may generally lease land parcels except for the cases specified in the Land. Non-Russian persons may obtain land plots for construction purposes out of the state or municipal lands in compliance with the Land Code.

Leases

Lease contracts are governed by 34 Chapter of the Civil Code. Under the contract of lease (or of property rental) the lessor (landlord) for a consideration undertakes to provide the lessee (or tenant) with the property for temporary possession and use or for temporary use. Fruit, products, and income realized by the lessee as the result of the use of the leased property are its property. Lease of the real property is regulated by general provisions on lease contracts also by special provisions related to (1) lease of buildings and constructions,

1) lease of enterprises

2) finance lease (leasing),

3) land lease

A lessor is either an owner of the property (individuals, legal entities) or a person authorized by the law or the owner to rent out the property, for instance by virtue of the right of economic domain.

State Registration is required for lease contracts. Registration of lease contract implies the registration of lease right as a burden of ownership. The Civil Code requires a lease for entire building, construction, premises and land plot lease to be registered only if the contract term exceeds one year.

 

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