At the end of last year Federal law M42-FZ from Dec. 27, 2009 "On entering amendments to articles 2 and 3 of federal law 'On Putting in Force the Land Code of the Russian Federation'" and article 7 of federal law "On entering amendments to legislative enactments of the Russian Federation as regards the pinpointing of the terms and procedure of acquiring titles to state- and city-owned land plots."
The new version of article 3, par. 2 of federal law (J137-FZ "On Putting in Force the RF Land Code" from Oct. 25,2001 reads like this:
"Legal entities with the exception of those specified in article 3, par. 1 of the Law shall convert their right of permanent, perpetual use of land plots to the right of land lease or take possession of this land. Religious bodies shall furthermore convert their right to the right of gratis limited use, if they so desire, until Jan. 1, 2012 in keeping with the rules specified in article 36 of the given document."
From Jan. 1,2013theRFCodeon administrative offenses will be complemented with article 7.34 introducing liability for the failure to meet the date and follow the prescribed procedure of re-registering the right of permanent, perpetual use of land plots to the right of land lease or the date and procedure of taking possession of land lots (the penalty of legal entities ranges from 20,000 to 100,000 rubles). But even the promised administrative prosecution does not accelerate the process of re-registration.
But while the subject is not new, there are several issues which are not directly addressed by the law in spite of a well-established forensic practice:
I. Re-registering the right of permanent, perpetual use of the land plot where no real estate objects are present
Perusal of this issue is caused by a large number of refusals to re-register the right of permanent, perpetual use of a land plot. Competent authorities refer to the lack of real estate objects on a plot as the main reason. However it is necessary to understand whether such refusals are legitimate.
Pursuant to article 3. par. 2 of Federal law FU37-FZ "On Putting in Force the RF Land Code" from Oct. 25, 2001, legal entities must convert their right of permanent (perpetual) use of land plots to the right of lease or take possession of land plots, if they so desire, until Jan. 01, 2012 in line with the prescriptions stipulated in article 36 of the RF Land Code.
A reference in the given article to the need to re-register the land titles in keeping with the rules stipulated in article 36 of the RF Land Code gave rise to some uncertainty about what particular land plots were to be re-registered. Thus article 36 is devoted to acquiring the title to state-owned or city-owned land plots whereon buildings, structures and edifices are located.
And how should one become a title holder of those land plots (the right of permanent, perpetual use) where no real estate objects are situated? What are the guidelines for these cases?
To answer this question, we should turn to the existing forensic practice
Considering the disputes related to conversion by legal entities of their right to permanent (perpetual) use of land plots to the right of their lease or acquisition of land plots, courts are recommended to take into account that pursuant to article 3, par 2 of Federal law "On Putting in Force the RF Land Code" the parties to which land plots had been assigned before the enactment of the RF Land Code, have the right to choose between land lease or land acquisition in keeping with the procedure set in the rules of article 36 of the RF Land Code regardless of the purposes for which the said land plots had been assigned to them (point 1 of Resolution a–11 on some issues related to application of the Land legislation" issued by the Plenum of RF Supreme Arbitration Court from Mar. 24, 2005).
An identical administrative procedure titles to respective land plots doesn't imply that article 3, par. 2 of Law # 137 FZ and article 36 of the RF Land Code regulate same relations of acquiring land as private possession by vested interests.
Article 36 of the RF Land Code stipulates the following terms for land acquisition: holding titles to a building, structure or edifice, exceptional nature of the right to privatization or leasehold acquisition essential for using a real property.
Article 3, par. 2 of Federal law #137-FZ from October 25, 2001 stipulates special terms of land acquisition as private property - a permanent (perpetual) land use, time limits imposed on the land user to choose a future mode of land use.
The new version of article 3, par. 2 of federal law (J137-FZ "On Putting in Force the RF Land Code" from Oct. 25,2001 reads like this:
"Legal entities with the exception of those specified in article 3, par. 1 of the Law shall convert their right of permanent, perpetual use of land plots to the right of land lease or take possession of this land. Religious bodies shall furthermore convert their right to the right of gratis limited use, if they so desire, until Jan. 1, 2012 in keeping with the rules specified in article 36 of the given document."
From Jan. 1,2013theRFCodeon administrative offenses will be complemented with article 7.34 introducing liability for the failure to meet the date and follow the prescribed procedure of re-registering the right of permanent, perpetual use of land plots to the right of land lease or the date and procedure of taking possession of land lots (the penalty of legal entities ranges from 20,000 to 100,000 rubles). But even the promised administrative prosecution does not accelerate the process of re-registration.
But while the subject is not new, there are several issues which are not directly addressed by the law in spite of a well-established forensic practice:
I. Re-registering the right of permanent, perpetual use of the land plot where no real estate objects are present
Perusal of this issue is caused by a large number of refusals to re-register the right of permanent, perpetual use of a land plot. Competent authorities refer to the lack of real estate objects on a plot as the main reason. However it is necessary to understand whether such refusals are legitimate.
Pursuant to article 3. par. 2 of Federal law FU37-FZ "On Putting in Force the RF Land Code" from Oct. 25, 2001, legal entities must convert their right of permanent (perpetual) use of land plots to the right of lease or take possession of land plots, if they so desire, until Jan. 01, 2012 in line with the prescriptions stipulated in article 36 of the RF Land Code.
A reference in the given article to the need to re-register the land titles in keeping with the rules stipulated in article 36 of the RF Land Code gave rise to some uncertainty about what particular land plots were to be re-registered. Thus article 36 is devoted to acquiring the title to state-owned or city-owned land plots whereon buildings, structures and edifices are located.
And how should one become a title holder of those land plots (the right of permanent, perpetual use) where no real estate objects are situated? What are the guidelines for these cases?
To answer this question, we should turn to the existing forensic practice
Considering the disputes related to conversion by legal entities of their right to permanent (perpetual) use of land plots to the right of their lease or acquisition of land plots, courts are recommended to take into account that pursuant to article 3, par 2 of Federal law "On Putting in Force the RF Land Code" the parties to which land plots had been assigned before the enactment of the RF Land Code, have the right to choose between land lease or land acquisition in keeping with the procedure set in the rules of article 36 of the RF Land Code regardless of the purposes for which the said land plots had been assigned to them (point 1 of Resolution a–11 on some issues related to application of the Land legislation" issued by the Plenum of RF Supreme Arbitration Court from Mar. 24, 2005).
An identical administrative procedure titles to respective land plots doesn't imply that article 3, par. 2 of Law # 137 FZ and article 36 of the RF Land Code regulate same relations of acquiring land as private possession by vested interests.
Article 36 of the RF Land Code stipulates the following terms for land acquisition: holding titles to a building, structure or edifice, exceptional nature of the right to privatization or leasehold acquisition essential for using a real property.
Article 3, par. 2 of Federal law #137-FZ from October 25, 2001 stipulates special terms of land acquisition as private property - a permanent (perpetual) land use, time limits imposed on the land user to choose a future mode of land use.
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