You can not buy to rent: how to reduce the rent if the plot can not be redeemed

Buy cannot be rented: how to reduce the rent if the plot cannot be redeemed

As you know, land plots of state (municipal) property can be used by ordinary legal entities and citizens on a leasehold basis or acquired into ownership. In most cases, for legal entities, this is a lease. Because property is not always economically profitable in terms of a one-time investment of money in the purchase of a land plot.

Although there are those who are ready to invest a lot of money and acquire land plots occupied by their objects, in the property. Considerable because, as we know, the calculation of the redemption price in Russia is carried out on the basis of the cadastral value of land plots (rates of 100% or less).

But not always everything is so simple. There are cases when it is forbidden by law to buy land for your object, even if you have money, but you can rent it.

In particular, such restrictions apply to land plots located in the territorial zone of the road network (it is often referred to in the rules for land use and development of settlements as the “IT 3” zone). Gas stations, tire fitting stations, various trade pavilions and similar road infrastructure facilities very often fall within the boundaries of such zones.

The coefficient of the type of use for such land plots when calculating the rent according to the formula reaches almost 30% (for example, in the city of Kemerovo), which imposes a significant financial burden on land tenants - owners of objects.

Now, these restrictions on redemption, oddly enough, are "compensated" by the state by establishing preferential rental rates.
Since August 2017, the federal legislation (Decree of the Government of the Russian Federation No. 582 dated July 16, 2009) has introduced a rule on the obligation to take into account restrictions on the right of the owner of a building or structure to buy out a land plot under an object. The essence of the rule is simple: the amount of rent should not exceed the amount of land tax, if this plot cannot be redeemed from state (municipal) ownership to private.

In the regions, a little belatedly, they began to take into account these amendments to federal legislation, which are mandatory for all lands, and not just federal ones. For example, in the legislation of the Kemerovo region in 2019, a similar rule was introduced, but only for land plots on the territory of the administrative center (paragraph 2.3-1 was introduced into the Decree of the AKO Collegium No. 62 of February 27, 2008). And in Decree No. 47 of February 5, 2010 on the procedure for calculating the rent for public land in other cities of the Kemerovo region, such innovations were bypassed.

But it is worth demanding the application of this principle to everyone whose land plots are not subject to privatization due to legislative restrictions, regardless of whether changes have been made to regional legislation. Federal law is on their side.

Despite the belated introduction of the principle of taking into account restrictions in the regional legislation, it is possible to demand its application and recalculation of rental payments from 08/12/2017, i.e. from the date when it is fixed by Decree of the Government of the Russian Federation No. 582. However, as a rule, recalculation is possible only by a court decision. Without litigation, local committees will recalculate only (1) if the relevant changes are made to regional legislation, and (2) from the date of their introduction (conditionally, from 2019), and not from August 2017.

And a decrease in the cadastral value of a land plot will lead to an even more significant reduction in rental payments for land.

Order the service of contesting the cadastral value in our company!

Author

Yana Yurievna Alexandrova

Senior Associate, Land. Real estate. Construction"