New opportunities arising from land plot reconfiguration

18.02.2015

Legal update No 505, 6/7

Goltsblat BLP continues its series of alerts exploring the extensive amendments to the land legislation introduced by Federal Law No. 171-FZ of 23 June 2014 “On Amending the Land Code of the Russian Federation and Certain Legislative Acts of the Russian Federation” (hereinafter FZ No. 171) and due to come into force on 1 March 2015.

In this alert, we focus on new opportunities for acquiring state- or municipally-owned land as a result of its reconfiguration in relation to land plots in private ownership. As you might recall, reconfiguration of several neighbouring land plots produces new neighbouring land plots, while the initial ones cease to exist (paragraph 1, Article 11.7 of the Land Code of the Russian Federation).

FZ No. 171 provides for reconfiguration not only of land plots among themselves, but also of land plots and land in public ownership (“non-demarcated area”). Reconfiguration of land in relation to a land plot produces a new land plot and the initial land plot ceases to exist. In other words, the private land plot area is actually expanded at the expense of land or land plots in public ownership (Article 39.28 of the Land Code of the Russian Federation).

Reconfiguration of land or land plots in public ownership and privately owned land plots is permitted in a limited number of cases, for instance, in order to bring the land plot boundaries into compliance with the approved draft boundary survey for the purpose of ensuring that no land plots are wedged into or enclosed by other land plots, territorially dispersed or have irregular boundaries, provided that the area of the privately-owned land plots expanded as a result of such reconfiguration does not exceed the maximum limits established for land plots.

A fee is charged for expansion of privately-owned land plots as a result of their reconfiguration in relation to public land or land plots; the fee is established by the public owners in respect of their land plots and by constituent entities in respect of land or land plots in undelimited state ownership.

Land or land plots in public ownership and land plots in private ownership are reconfigured on the basis of a relevant agreement concluded with authorities with land management powers (Article 39.29 of the Land Code of the Russian Federation).

In a week, we will complete our series with an alert looking at changes in the regulations for using leased public land.

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