Municipal property in Russia is considered to be such property which, on the basis of the right of ownership, belongs to the state (the so-called federal property), as well as property, on the basis of the right of ownership, owned by state entities. On behalf of the state and its subjects, bodies exercising state power have the right to acquire this property and exercise its property rights and obligations in relation to it.
Municipal property is also that which is owned by urban or rural settlements, or other municipal entities. Local governments have the right to purchase and use it, and, in the framework of the competence of municipalities, which is established by special regulatory acts, speak in court. Let's consider for a start what is the sale and rental of municipal property
General provisions for the lease of municipal (state) property
The lease of municipal property has its own characteristics that relate to the conclusion of the contract, as well as the establishment of all relevant lease payments. In accordance with some provisions of the Constitution of the Russian Federation, the management of municipal (state) property is carried out by the Government of the state.
Relations that arise in the process of concluding a lease of municipal property, as well as the execution of a lease, are regulated by chapter 34 of the Civil Code of the Russian Federation. The lease, otherwise called property lease, is that the lessor must provide the tenant with certain federal property for temporary use for a fee.
The importance of the statement
All questions about renting any federal property are decided only on the basis of an application from a circle of individuals or legal entities, Russian or foreign, defined by law. This also includes international organizations that have a resolution that they are balance-sheet holders.
What else is needed?
In addition to the application (application) for rent, the applicant must submit to the special Committee for the management of municipal (federal) property the following documents:
- The originals of the constituent documents of the company that receives the property for rent, or their copies notarized, if we are talking about legal entities. If the lease is intended to be concluded by an individual as an individual entrepreneur, then a certificate of registration of private enterprise will be required from him.
- The balance of the company, which in the lease of property will act as a tenant.
- Certificate of debt for utility bills or rent.
- Certificate certified by the tax authority on the presence or absence of debts for all types of obligatory payments.
When considering applications for a lease, the presence or absence of arrears of tax obligations and the timely payment of lease obligations are especially taken into account. In order to limit the maximum terms for leasing, this period is clearly regulated and amounts to 1 month from the day the tenant provides a full package of relevant documents.
Rental Property Format
The lease of federal and municipal property may take several forms:
- subject to the implementation by the lessee of the pre-emptive right to the lease, in the manner of extending such an agreement;
- in the general order of consideration of applications, including on the basis of a commercial tender or through an auction.
An auction is a competitive way of determining who will become the tenant of state or municipal property. The auction is carried out through public auction, where the tenant is the applicant who has offered the maximum price for the right to conclude a lease. A commercial competition is such a way of determining the tenant of the property, where the winner can be recognized as the applicant who will submit the most advantageous offer.
What to do if a refusal has been received?
A refusal in an application for concluding a lease agreement is provided by the State or Municipal Property Management Committee and must be handed to the applicant in writing. A prerequisite here is an indication of the reasons for such a refusal, which, in turn, can be appealed in court in compliance with the regulation of special regulatory legal acts.
Transfer of property under a lease
The lease agreement for any non-residential premises must be concluded in writing in one document signed by both parties. According to this agreement, the lessor must transfer for temporary use a specific building, structure or premise. The lease must necessarily indicate this property, its technical condition, location, area and other characteristics. The lease of such property objects is carried out in accordance with a deed of transfer or another document indicating that the object has been transferred to the use of the tenant. The act must be drawn up in two copies - for both parties to this contract. 5 days after the conclusion of the agreement, the lessor must provide the tenant with the property that is the subject of this lease.
Sale of municipal (state) property
The process of selling municipal property is controlled by the law “On the privatization of state and municipal property”. Privatization is the alienation of property that is in the ownership right of municipalities, into the ownership right of legal entities or individuals. This process is onerous.
Any legal property in the process of sale is entitled to any legal entities as well as individuals. This list excludes unitary enterprises, municipal or state institutions. This also applies to those legal entities in which the authorized capital contains more than 25% of the funds owned by the state or its entities. There is a special site for the sale of municipal property, officially providing information on this issue. The procedure for privatizing property that is held in municipal ownership is consistent with regulatory acts of the state, as well as its subjects.
How is the cost determined?
The standard price of property subject to privatization is the minimum value at which such property can be disposed of. It is determined in the manner established by the government of the state. The standard price of property subject to privatization should be equal to the market price, which is determined by an independent appraiser. The starting price of municipal property subject to privatization is established in cases provided for by law on the basis of the opinion of an independent appraiser, who must also carry out its activities under the law.
The conditions for the privatization of property belonging to municipalities, according to the regulatory legal acts regulating this process, are independently determined by local authorities. Information on the start of the privatization of municipal (state) property must be published in various media sources, which are also determined by local authorities. This should happen at least 1 month before the appointed day, unless otherwise provided by law. Municipal property is sold after privatization.
What should be publicized through the media?
The list of information that is subject to mandatory publication in the media:
- The name of the local government that made the decision to begin the privatization of municipal property, as well as all the details of such a decision.
- The name of the municipal property, as well as all its individual characteristics.
- The method according to which the privatization of municipal property will be carried out.
- Starting price.
- Terms of payment, terms of its implementation, as well as all necessary details of current accounts.
- Place of application for the privatization of municipal property, the procedure for its implementation, start and end dates.
- Requirements for paperwork and their exhaustive list.
- The term established for concluding a contract of sale of municipal property.
- The opportunity to familiarize potential buyers with other information about the object to be privatized, as well as with the terms of the contract and the inventory act.
- Restriction conditions for certain categories of legal entities or individuals.
- Other important information.
Selling municipal property through auctions
Municipal property may also be auctioned. This happens if the buyers of such property do not have to fulfill any conditions in relation to it. The right to acquire municipal property in the process of sale is carried out by auction and belongs to the buyer who is ready to offer the highest price for it. If only one legal entity or individual took part in the auction, such an auction shall be invalidated by law.
Before the auction, the media should indicate:
- place and time of such an auction;
- the order in which winners will be determined;
- conditions for making a deposit, its size, all necessary bank details and the procedure for making it.
Information on the results of auctions is subject to mandatory publication in the media, where the period for such publication should not exceed thirty days from the date of such transactions. Auction for the sale of municipal property and thematic competitions can also be held in electronic form. As already noted, there is a special site for everyone interested in this issue. Bidding for the sale of municipal property of this format will ensure their informational transparency and simplification of this procedure. Electronic view will minimize the possibility of collusion between participants in such auctions and their organizers. Privatization of facilities is carried out by drawing up a contract of sale of municipal property, which must necessarily include all the conditions of this transaction.