Construction permits: changes relating to issue, validity and termination.

26.08.2011

Legal Update No. 264. 

Goltsblat BLP advises that Federal law No. 224-FZ of 18 July 2011 “On Amendments to Articles 51 and 56 of the Town-Planning Code of the Russian Federation and Certain Legislative Acts of the Russian Federation” has specified the provisions of the Town-Planning Code of the Russian Federation on issue, validity and termination of construction permits.

As previously, the general rule is that construction permits are issued by the local government body at the location of the land plot. The exceptions to this rule have now been specified in detail:

  • For construction or reconstruction of a capital structure on a land plot provided to a subsoil user and required for use of the subsoil (apart from deposits of common minerals), the permit is issued by the federal authority for management of the state subsoil fund;
  • If construction of the facility is planned on the territories of two or more:
    • constituent entities of the Russian Federation, the permit will be issued by the competent federal executive authority;
    • municipalities (districts, urban districts) - by the executive authority of the constituent entity of the Russian Federation;
    • population centres or the territory between population centres within a single municipality - by the local government body of the municipality.
  • A decision to terminate a construction permit early may be taken by the competent authority that issued the permit as a consequence of cancellation of land plot leases.
  • The Town-Planning Code of the Russian Federation has been supplemented by provisions on what happens to a construction permit if new land plots are formed on the basis of or including the plot that existed when the permit was issued and on which the construction was planned.

It is now stipulated specifically that, if the rights to a land plot transfer to another person, the new right holder is entitled to carry out the construction or reconstruction on the given plot in compliance with the construction permit issued to the previous land plot right holder.

At the same time, in the above cases of formation of new land plots or transfer of land plot rights or reissue of subsoil use licences, the persons acquiring the rights to the land plot or to subsoil use are required to notify in writing the relevant bodies authorised to issue the construction permit. Within 10 working days of receiving the notification, these bodies are to decide on amendment of the construction permit. 

These amendments came into effect on 22 July 2011.

For additional information, please contact:

Vitaly Mozharowski
Partner, Real Estate and Construction, Goltsblat BLP
T: +7 (495) 287 44 44,
E: info@gblplaw.com

Yuri Chernobrivtsev
Partner, Real Estate and Construction,
Goltsblat BLP
T: +7 (495) 287 44 44,
E: info@gblplaw.com 

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