Legal Positions of the Presidium of Russia’s Supreme Arbitration Court on Real Estate Transactions

01.03.2010

Legal Update No. 127

Goltsblat BLP advises on some legal positions of Russia’s Supreme Arbitration Court on real estate transactions:

  • from the registration date of transfer of real estate title to a new owner, the former owner withdraws from the lease obligation with respect to the land plot  accommodating the real estate.  The lease agreement goes on to regulate relations with the new owner.

(Resolution No. 8611/09 dated 27 October 2009)
  

  • ownership of a land plot accommodating properties, title to which has been registered and not terminated, may not be transferred to the property owner under article 36 of the Russian Land Code if the properties have actually been destroyed and cannot be operated.  In this case, the owner of the destroyed properties retains the previous right of permanent (termless) use of the land plot subject to restoration of the properties being launched, as appropriate, within  three years (this period may be extended).  The terms on which the land lease or sublease rights are retained are determined in such cases by the lease (sublease) agreement.  Once a destroyed property has been restored, the owner may exercise the exclusive right to privatise the land under article 36 of the Land Code.

(Resolution No.  6811/09 dated 1 December 2009)

  • registration of federal ownership, ownership by a constituent entity of the Russian Federation or  municipal ownership of a land plot in an effort to delimit state ownership of land does not prevent this land plot from being subsequently privatised or leased by the owners of real estate located thereon, as provided for in article 36 of the Russian Land Code. Nor is an indivisible land plot prevented from passing into common shared ownership.  Registration of state or municipal ownership right to a land plot may not, therefore, be refused merely because it accommodates real estate owned by a party other than the public entity whose right is being registered.

(Resolution No.  11276/09 dated 15 December 2009)


  • an agreement on assignment of a right to an apartment after commissioning of a block of flats constructed on the basis of an investment contract does not, in terms of content, constitute sale and purchase of an interest in the properties under construction.  Such an agreement is not subject to the provisions of article 250 of the Russian Civil Code regarding the preemptive purchase right enjoyed by other co-owners.

         (Resolution No.  4795/09,  dated 10 November 2009)

For additional information, please contact:

Vitaly Mozharowski,
Partner, Real Estate and Construction,
Goltsblat BLP,
E: info@gblplaw.com

Elena Barinova,   
Partner, Real Estate Investment and Finance,
Goltsblat BLP, 
E: info@gblplaw.com

 


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