Презентация PwC Legal об основных изменениях в российском законодательстве в сфере недвижимости содержит обзор последних правок к Земельному кодексу РФ.

1. Top 5 Amendments
to the Russian Land Code
www.law.pwc.ru
Alexander Maslov
Associate, PwC Legal
28 May 2015

2. PwC Legal
Reform of the Land Code in figures
10
Federal Laws
were adopted
within the reform of
2014-2015
20 articles have
been excluded
from the Land
Code
More than
45 new articles
have been
included to the
Land Code
More than 40
articles have
been amended
10 new
chapters have
been included to
the Land Code
1.
4. 3.
5. 2.
Slide 2
Top five amendments to the Russian Land Code

3. PwC Legal
Seizure of the Facility Under
Construction
Any facility under construction on a publicly owned land
plot may be seized from the developer if the construction
was not completed within the lease term.
When a lease term expires, the authorities are entitled at
their sole discretion to:
• seize the building under construction by obtaining a
court order and put it up for sale at public auction; or
• renew the lease to give the developer additional time to
complete the construction.
Note
A facility under construction may not be seized from the
developer if the latter can prove that it failed to meet the
construction deadline as a result of the actions (or
omissions) of the relevant authorities or the owners of
utilities networks.
Slide 3
1
Top five amendments to the Russian Land Code

4. PwC Legal
Seizure of the Facility Under
Construction
Solution
The developer should document all relevant actions (or
omissions) of the authorities and utilities providers.
Outstanding issues
• The Land Code does not clarify whether, if a building
under construction is seized, title of ownership to the
building should be registered prior to the public auction.
• The exact lease term for a new lease provided to finalise a
construction project is not specified.
• The Land Code does not clarify how an unfinished
building could be finalised if the new owner fails to
complete construction within the new lease term.
Slide 4
1
Top five amendments to the Russian Land Code

5. PwC LegalPwC Legal
New regulation of development rights
Usage of state
and municipal lands
without allocation
Lease and
ownership
Easement
Development
rights
Top five amendments to the Russian Land Code
Slide 5

6. PwC Legal
Lease of Public Lands For
Construction Purposes
• As a general rule a public land plot, for which the main
type of permitted use is construction, may be granted for
development only through a lease.
• Public land plots may be sold and leased solely on the
basis of an auction.
• The practice of obtaining a leasehold title through
preliminary approval of the location of a building to be
constructed is no longer permitted.
• The Land Code contains a list of exemptions when land
leases may be provided without holding an auction (e.g.
for the implementation of large-scale investment
projects).
• As a general rule, tenants on public lands are not entitled
to renew a lease agreement for a new term without
having to go through a new auction process.
Slide 6
2
Top five amendments to the Russian Land Code

7. PwC Legal
Lease of Public Lands For
Construction Purposes
Lease terms
Maximum lease terms have been established for various
situations.
As a general rule, when a public land plot is granted for
construction purposes, the lease term should be from three
years up to ten years.
The Land Code also stipulates that the amount of rent is
now a material condition of a land plot lease agreement.
If the parties to an agreement fail to specify the rent, the
lease agreement may be deemed null and void.
Slide 7
2
Top five amendments to the Russian Land Code

8. PwC Legal
Construction Easements
Construction easements represent a new development
right, which is an alternative to a construction lease.
Purpose:
• placement of linear facilities, telecommunications
structures, information signs and protective structures,
which do not restrict the permitted use of the land plot;
• conducting surveying work; or
• conducting work involving subsoil usage.
If a federal, regional or municipal land plot was allocated
for a term of more than one year, an easement agreement
for the given land plot must be concluded with the
titleholder (land user, landholder or tenant) of the land
plot.
Slide 8
3
Top five amendments to the Russian Land Code

9. PwC Legal
Construction Easements
State registration of a construction easement
• The Land Code states that it is not required to delineate
in the state cadastre that portion of the land plot that
will be used for construction easement purposes.
• Furthermore, it is possible to conclude an agreement
establishing an easement with respect to a designated
portion of a federal, regional or municipal land plot for
a term of up to three years without state cadastral
registration of the given portion of the land plot and
state registration of the easement as an encumbrance
over the land plot.
• Please note, however, that such construction easement
may not be discovered by means of standard legal due
diligence.
Slide 9
3
Top five amendments to the Russian Land Code

10. PwC Legal
Use of public lands without lease
or easement
Public lands may be used without allocation or
establishment of an easement in the following cases:
• engineering surveys;
• capital or current repairs of linear facilities;
• construction of temporary or associated structures,
storage of construction and other materials and
construction equipment, reconstruction of federal,
regional or municipal linear facilities;
• geological study of the subsoil;
• activities aimed at preserving and developing the
traditional lifestyles;
• placement of non-permanent retail facilities,
advertising structures and other facilities.
Slide 10
4
Top five amendments to the Russian Land Code

11. PwC Legal
Use of the public lands without
lease or easement
RF Government Resolution No. 1300 of 3 December 2014
establishes an exhaustive list of those facilities that may be
located on public lands without the allocation of the land
plot or establishment of easements.
The list includes, among other things:
• underground linear structures (together with their
surface elements);
• water pipelines; and
• linear sewage facilities.
Slide 11
4
Top five amendments to the Russian Land Code

12. PwC Legal
Seizure of lands for state or
municipal needs
• The seizure of private land plots for allocation to public
use is permitted only if such allocation is prescribed in a
PPT and within three years after the PPT was adopted.
• A procedure for identifying titleholders of seized real
estate objects has been introduced.
• The rules for establishing the value of seized property
has been systematised and clarified.
• Under the new amendments, certain companies may
now request land seizures. The RF Government adopted
an official list of such companies on 6 May 2015.
Slide 12
5
Top five amendments to the Russian Land Code

13. PwC Legal
Future Prospects
Some of the changes are quite favourable and will help
create an investment-friendly environment. However the
recent reforms have left a number of critical issues
unresolved
• The major trend in these reforms has been to bring land
use legislation into closer accordance with urban
planning regulations, and the two bodies of law are
likely to be brought even closer in line.
• A number of amendments to the Land Code have been
introduced to promote the creation of comprehensive
urban planning regulations.
• It is still unclear how closely the new Land Code
amendments will correspond to proposed amendments
to the Civil Code related to superficies.
Top five amendments to the Russian Land Code
Slide 13

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