Goltsblat BLP advises of adoption of Federal Law No. 167-FZ of 22 July 2010 “On Amendments to the Federal Law ‘On Appraisal Activities in the Russian Federation’ and Certain Legislative Acts of the Russian Federation” (the Law). This is the first legislative enactment of the rules for state cadastral appraisal of land determining the cadastral value of land plots and providing a basis for setting the land tax, land privatisation prices and other important instruments.
The most significant concerns of the Law include, inter alia:
Recognition of the rule prescribing that the state cadastral appraisal be conducted by resolution of a regional executive authority at least once every 5 years. No maximum frequency is set for appraisal (which was previously no more than once every 3 years). Cadastral appraisal may also be carried out if resolved by a local government authority as and when prescribed by regional laws.
State cadastral appraisal is to be conducted on the real estate recorded in the State Real Estate Cadastre (SREC). This means that, for example, no cadastral value will be determined for a land plot not registered with the state cadastre.
If the value set affects the rights and obligations of interested parties, they may challenge it in court or a commission for cadastral value disputes. The commissions are set up by authorities vested with the function of state cadastral appraisal within a relevant Russian region.
The grounds for revising the resulting cadastral value are as follows:
invalid real estate data used in determining its cadastral value;
determination of the real estate market value on the date as of which its cadastral value was fixed. At the same time, the Russian Land Code clearly stipulates that, where the market value is determined for land, its cadastral value is established as equal to its market value (updated clause 3, article 66 of the Russian Land Code).
The Russian Land Code has been updated so that the permitted use of land is determined in accordance with the classification approved by the federal executive authority in charge of the national policy and regulations governing land issues (presently, the RF Ministry for Economic Development). This provision is obviously meant to unify the terminology. It is not completely clear, though, how this rule will align with the Russian Town-Planning Code dictating that the permitted use be determined in the land use and development rules approved by the local government authorities.
The Law introduces the notion of examination of the cadastral value determination report by the self-regulating body for the appraisers determining the cadastral value. The cadastral value report is accepted by the customer (a government or local government authority) subject only to a positive expert opinion being available.
Within ten days of the resulting cadastral value being approved, the information on the approved results of determining the cadastral value, including the cadastral value itself, the date of the last state cadastral appraisal and other data, should be published. The appraisal results are recorded with the SREC, too.
The Law took effect on 26 July 2010, apart from some of its provisions which will come into force on other dates (25 September 2010 and 1 January 2011).
For additional information, please contact:
Vitaly Mozharowski, Partner,
Real Estate and Construction,
T: +7 (495) 287 44 44,
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