Moscow is not only an independent subject of the Russian Federation, but also an independent subject of Land & property relations. Since the Land Code of the Russian Federation passed and came into force, the legislative authorities made a decision on systematization of legal acts of Moscow concerning the issues of land relations, as well as construction and reconstruction work in the city. The main acts, which investors, are most interested in, are the laws of Moscow "On the use of land and construction in Moscow" and "On the permission for construction and reconstruction work on city-planning objects in Moscow". The law on the use of land determines the main notions and terms, which are extremely important for the investor or other interested person lo be aware of if they want to be involved in the construction or reconstruction work in the city. The above mentioned law introduces such notions as Yterritorial zone", which is the part of the city with the city-planning regulations common for all land areas within the limits of this zone, City-planning regulations is a document containing the types and limitations of the use of the particular land areas. The law also indicates the basis for purchase, possession and dispossession of the land. According to the Constitution of the Russian Federation and Moscow Regulations, there are two kinds of land property, which is currently under the city management:
STATE property, including:
-federal property on the territory of the RF subject – state property of the Russian of the Russian Federation – land areas with buildings and other premises currently occupied by legislative, executive and indicial authorities of the Russian Federation. General Public ProsecutorTs Office, Central Bank of the Russian Federation, Pension Fund of the Russian Federation, ect.
- state property of the subject of the Russian Federation;
PRIVATE property (experiment in Zelenograd)
Currently, lease remains hi be the main form of the of land in Moscow. Realization of the leasing rights is one of major prerequisites for real estate development. Those investors who had won the leasing rights contest get a guaranteed opportunity lo start land development activities.
Thus over the recent years many new apartment buildings, trade centers, parking lots, shops, restaurants, administrative buildings have been built. There are a long-term lease (up to 49 years) and a short-term lease (up to 5). The leasing terms are determined by the leasing agreement. Land, which is a city property, can be leased out or granted for a permanent use. The right for the permanent use of land is granted solely to the state and municipal authorities and government enterprises. All other juridical or natural persons can either purchase or lease the land. Leasing of the city land usually is done based on the results of the contest. Although, if a person has a building in his (her) possession, then he (she) can lease the land without the contest.
Moscow government issues a statement based on the contest results, which is the grounds for either a leasing agreement or a proprietary certificate. The use of land in Moscow requires payment. The main forms of payment are land tax, rent and lump sum, which is collected during, the sale of land or the sale of right to negotiate the leasing agreement.
Types of civil-transactions with the leasing rights and land areas
- mortgage on tenant rights
- purchase and sale of tenant rights
- inclusion into the authorized capital stock
- sublease
Legal documentation for land transactions
Protection of the tights of land tenures and introduction of land into the market-we not possible without the proper registration of the right to use or own the land with all the required legal certifying documentation, which is prepared in compliance with the current legislation of the Russian Federation.
For the proper paperwork procedure the Committee does a thorough land analysis in all she land areas. Specialists conduct a legal check-up of all the documents submitted by the tenure, and a land surveying work, prepare the draft of administrative act (to be certified by the executive authorities) on granting the land areas, and leasing or ownership rights. Then the required paperwork on the right to leas or own the land is prepared with the issuance of the standard certifying documents (leasing agreement, permanent use agreement, life-time inherited ownership, free temporary use agreement). Besides. Moscow Land Committee carries out the transactions with the leasing rights, like pawning, mortgage, purchase sale, contribution to the authorized capital stock, etc.
General information on negotiating the agreements
- Land tenure submits the documentation package and fills out a form on the use of the land area in Moscow to the Territorial association of land use regulations. The package includes:
for a newly granted land:
A copy of the certificate of registration, copies of the constitutive documents (for natural persons Ö a copy of the passport), copies of the property documents, authorizing documentation,
for the authorization to use the land:
- Copies of the certificate of registration, copies of constitutive documents, (for natural persons Ö a copy of the passport), copies of the property documents, historic certificate, Technical Inspection Bureau documents (sees that the land area and the buildings if any meet she technical standards stated in the documents, and prepares the necessary paperwork) technical passport, form la, floor plan, plan of the land area.
- Territorial association of land use regulations gives a border plan after all the technological work is completed, but not after submission of the documents.
- After the border plan is submitted to the Territorial association of land use regulations, the case is considered by the regional or city Committee on land related issues in order to make a decision and issue an administrative decree.
- After a positive decision is made, the administrative decree is issued and all the necessary land surveying work is completed, the land tenure and the Moscow Land Committee (Moscomzem) sign a leasing agreement or other certifying document, and draw the plan of the land area.
- Moscomzem submits all the certifying documents and the area plan to the Moscow Registration Committee for registration.
- The land tenure receives the documentation package.