The relevance of leasing land and using it for their own purposes will never decrease. Renting land is the easiest way to become the owner of a piece of land that you can use according to your ideas about economic efficiency. Indeed, even construction is allowed on the leased land. But, as elsewhere, legal issues are not without nuances.
General ideas about leasing land
All requirements for registration of land plots for rent in Russia are collected in the Land Code of the Russian Federation. But, unfortunately, it is often adjusted and changed, so when working with specific articles you need to make sure they are up to date.
However, the main points are unchanged:
• Land plots can be rented by individuals and legal entities, associations of citizens of the Russian Federation, foreigners who do not have citizenship, foreign missions and enterprises, international organizations.
• Restrictions are imposed on plots of land located within the limits of the right of way, along the coastal line of water bodies, nature reserves, and also land for forestry purposes.
• The right to lease may be subject to alienation (up to sales at land tenders), may be inherited or, if necessary, become a pledge. In all the cases described, there are restrictions stipulated by law.
• Lease of land is considered as short and long-term: respectively, up to five years and no more than 50.
Rental Objects
The objects are all land plots (not included in the list of exceptions) that belong to citizens of the state, legal entities; are communal or state real estate. Provision of land for rent, of course, is carried out by the owners. If we are talking about communal property, the lessor is the village (city, etc.) councils. When a site belongs to territorial communities, the signing of a land lease agreement is carried out by representatives of regional (provincial) governing bodies. If the state land is leased, the contracts are signed by the executive authorities.
Since the land plots may be the subject of a pledge, their transfer to rent occurs in agreement with the pledge holder.
Land lease agreement: what are the features
Any real estate transaction must take place in accordance with applicable law. One of the conditions is a land lease agreement registered in the register. A sample of this document gives an idea of the general structure and conditions of its conclusion.
The mandatory paragraphs noted in this document must be:
• definition of land by cadastral records (including location and size);
• the period for which the contract is drawn up;
• rent and its size - this section should specify the size of indexation, the timing of payment and the form of the next payment, liability for non-payment, etc.
• intended use of land and terms of use of the site;
• the condition of the object at the time of transfer to the lessee and the conditions for preserving the land;
• burdens (restrictions) on the use of land;
• determination of the party at risk for unintentional damage or complete destruction of the leased property (its parts);
• common responsibility of the parties.
What can be done with leased land
Lease of land (land law allows this) allows you to specify them as part of the authorized capital of the enterprise within the framework of the contract. Also, the land can be leased to third parties, only by notifying the owner (in accordance with the agreed terms of the main contract). These nuances and conditions must also be displayed in the lease of the site.
A written contract is drawn up in at least two copies, and at the request of any of the parties (the lessee or lessor) can be notarized.
The lease of land will not be recognized as valid if the contract is drawn up incorrectly and there are no specified paragraphs.
Additional land lease documents
All of these conditions apply to the contract itself. The conclusion of a land lease agreement is accompanied by the following documents:
• plan (scheme) of the leased land;
• cadastral plan of the plot, in which land easements and restrictions are displayed;
• the act of determining the inter-site on the ground;
• Act on the acceptance and transfer of land for rent.
Parties may also stipulate specific rental conditions. They may include marks on the quality of the land at the time of transfer to the lessee, the availability of an insurance policy for the property, etc. Separately, the issues of reimbursement of expenses for the improvement of the rental property and security measures are discussed separately. In addition, if there is a need for land reclamation or some activities on the site, the contract remains valid, but all the nuances should be reflected in it.
Agreement Signing Procedure
Features of the transaction in which a land lease agreement is signed are determined by the person who has ownership of the subject of the agreement. In the case of private property, the signing of the contract is by agreement of the parties. If the proposed rental object is communal or state property, the transaction procedure begins with an auction, and, according to the decision of the executive authority, permission is issued to transfer the object to the lessee. A special case of leasing a plot of land can be called the conclusion of an agreement in succession.
Lease of land, according to the laws, must be registered with the executive authorities.
Payment
The fee for the opportunity to use the land is regular payments that the lessee transfers to the lessor on time.
If the contract is concluded by private individuals, then payment is made by agreement of the parties. If the real estate is a land plot from the state land fund, then payments are made in accordance with the norms of the Tax Code of the Russian Federation.
If the concluded agreement proves to be unauthorized by a court decision, then all rent received at the time of the court decision remains with the lessor and is not returned.
With the exception of land plots that are state and municipal property, rent may be made in the form of goods or in the form of services to the owner of the property. Lease of state property is paid only in cash.
Contract period
At the beginning of the article, it was already mentioned the short-term and long-term lease of land. Time frames are negotiated individually, but they should not exceed 50 years.
Upon completion of construction and after the commissioning of the facility, the tenant of the site may extend the contract for the next 50 years. He has priority right.
In the event of the death of the tenant of the land allotment, the heirs shall receive the right to use the land. If they wish, they can waive their rights, and then persons who have revealed interest in the property will receive rights to rent it. This is the so-called assignment of land lease.
When the lease of land ends, the contract is terminated or the procedure for its extension begins. Early termination of the contract is possible if:
- Land purchased for public use.
- The owner and tenant will be united in one person.
- The lessee (individual) is sentenced to imprisonment or has died, and family members and heirs refuse to fulfill contractual obligations.
- The mortgagee of the land has seized the right of ownership.
- The building was purchased by a person who is not a tenant of the land on which it is built.
Renewal of arrangements
The tenant, who faithfully fulfilled all obligations under the contract, has the priority right to extend it after the expiration of the agreement. But it is necessary to notify in writing the owner of the land about the desire to conclude the following contract.
It is possible to extend the lease term without prior notice to the owner. This happens if, within a month after the end of the land lease, the owner does not send a letter of objection to the use of land. Then they talk about the so-called automatic extension of the arrangement.
Termination of the contract. What's next?
The lessee is obliged to return the land to the owner within the agreed time and in the agreed condition. If the tenant has claims against the owner (lessor), they are resolved in court.
A person who has become the owner of an apartment in a residential building (or a private house) also receives rights to the land plot (or part of it) on which the construction object is built. The transfer of land occurs. The contract determining the change of ownership of the home interrupts the previous lease of this land.
When the term of this contract expires, the new owners of a home or building have a priority right to extend the lease of land. If insurmountable obstacles arise in extending the lease, and the owners of one real estate object do not agree with the owners of another object (the house and the land under it), then all issues will be resolved exclusively in court.