If, for an objective or subjective reason, the purchase of a land plot is not possible, you can secure the right to use the land, as well as everything that can be obtained from its surface and in the depths, by renting the land, taking into account its location.
What does “rent” mean and who can rent a plot
Lease of land is one of the types of use of real estate, and on the territory of large cities and megacities this type of land rights is the main.
Provision of land for rent to interested parties is carried out at auction. The initial price of a plot can be very low, but as a result of the auction it can increase many times.
But this does not mean at all that renting a plot is inaccessible to mere mortals. In addition to legal entities, individuals, that is, citizens of Russia, can become tenants and lessors. However, there are a number of persons who have priority rights to conclude a lease. These are:
- owners of capitally rebuilt facilities located in these areas;
- persons renting buildings on this site.
For state and urban needs, any land is rented without bidding and auctions. If the site is reserved for the above purposes, the previous tenant is granted the right to lease another site that has passed state registration, by mutual agreement of the parties.
What land can I rent
Categories of land permitted for functional use with specific conditions and restrictions in each case.
- for development by residential buildings with various number of storeys;
- for individual residential construction;
- for the construction of buildings and structures for domestic, commercial use, catering, car service, gas stations;
- garage construction, organization of parking lots;
- lands with objects, institutions, organizations of public education, culture, sports, religion;
- enterprises, administrative, public buildings, financial, pension, insurance institutions;
- industrial, municipal facilities, transport organizations, communication organizations;
- military facilities;
- country and horticultural partnerships;
- land under recreational facilities and for recreation of citizens;
- agricultural grounds;
- land spaces occupied by forests, parks, squares, including boulevards;
- water bodies;
- other lands occupied by settlements, streets, roads, as well as reserved lands.
Information on the classification of the leased land as one of these categories is entered into the contract. If the status of the land changes, the contract is amended. This can be a price clarification and special conditions for using one or another type of land. You also need to consider that the land of certain categories can only be rented, without the possibility of further redemption.
What could prevent a deal
Lease of land is not possible in all cases. The RF Land Code provides a list of lands that cannot be the subject of transactions and contracts (Article 27, paragraph 4). In addition, any land transactions are possible and legal only provided that there is a cadastral number, measurements are made and borders are determined. If the absence of such information is revealed, the transaction may be declared invalid.
Also, for the terms of the agreement to enter into force, the registration of the lease of land in state bodies must be made.
Property Lease Agreement
A transaction, the object of which is the lease of a land plot (an example of a model contract is attached), must certainly be legally correctly executed.
Upon conclusion of the contract, the right to use land arises for the period provided for by the contract. Both legal entities and individuals are entitled to lease and make profit from their property (land).
The land lease agreement is the main and almost the only instrument for regulating the relationship between the lessor and the lessee, on the basis of the law of obligations.
These relations must be sealed and confirmed by a written agreement drawn up in accordance with the requirements of the legislation (Civil Code and the RF Labor Code). The document on the temporary granting of the right to use the land plot, concluded by mutual agreement of the parties, must be registered. The exception is only short-term contracts (up to a year).
It should be noted that in some cases even transactions for a short period should still be registered.
The owner, of course, has the right to lease his plot, but the tenant can also dispose of his right to a term not exceeding the period of his lease (if the contract does not contain reservations that prevent such use of land).
For how long is the contract concluded
The lease is urgent, that is, limited to a specified period of validity. Most often this is a period of 5 years, but you can conclude a deal with a shorter validity period. On the territory of Moscow, land plots with capital objects located on them are rented for a period not exceeding 49 years.
If the leased land is within the boundaries of land considered common land (red lines), it can only be rented for 1 year. If it is planned to carry out restoration and repair work on public lands without the right to build real estate, the lease term for a land plot can be extended up to 5 years.
The main features of this type of transaction
So, there are three features of land lease: its urgency, payment, return of property to the owner at the end of the contract.
The amount of payment for the use of land is determined taking into account the category to which the plot belongs, as well as the terms of the contract. There are a number of sites whose use is set by the Government of the Russian Federation.
At the end contract duration An accurate and solvent tenant can rent the land again and also acquire it if it was included in the terms of the transaction in advance (Article 35, Article 36, Article 46 of the Code).
What a potential tenant should know
There are many subtleties of land design. For each specific case, conditions are provided to ensure the implementation of legislative regulations.
For example, the lease of land located along the coastal strip provides for the tenant to provide citizens with free access to both the river itself (lake, sea) and the coastal strip.
The tenant may sublease the land, while the subtenant has all the rights specified in the Code during the term of his lease. If there are no additional reservations in the contract, the landlord must be aware of this, but his consent is not required.
Rights to land obtained as a result of a transaction can be transferred to a third party, as well as used as collateral, a contribution to capital, a share contribution.Of course, such actions are limited by the duration of the agreement with the landlord, the terms and reservations duly entered into the text. It is also necessary to notify the landlord, however, renegotiation of the contract is not required.
If the owner of the land allotment becomes a minor (by right of succession, for example), before it occurs, a lease agreement can be concluded on behalf of the guardians.
Is it possible to terminate the land lease agreement
The transaction is terminated on the grounds indicated in the Civil Code in the manner prescribed by law, mainly on:
- by agreement of the parties;
- court decision;
- expiration of the contract;
- the statement of the lessor in case of violation of the terms of the transaction, for example, in case of misuse of land or unfair performance by the tenant of payment obligations.
In these cases, the tenant should be given a written warning.