Leasing a land plot owned by the municipality gives citizens and legal entities different ways of obtaining land for a particular category for use. The entire transaction process is regulated by law, which provides important features for registration of the allotment.
Categories of municipal land for rent
The main categories of land that are leased include agricultural land and settlement land. Allotments of the first category are usually located outside settlements and transferred to objects of land relations in order to maintain:
- Gardening.
- Gardening.
- Livestock walking.
- Mowing hay.
- Agricultural production.
- Organization of household farms, peasant or experienced educational type.
In relation to land plots of settlements, rent is carried out for the following purposes:
- Construction of individual houses and MKD.
- Doing LPH.
- The construction of public and industrial buildings.
- Creation of roads and transport links.
- Construction and communications services for the life of the relevant community.
In some cases and subject to the necessary conditions, the lease of a land plot owned by the municipality may be carried out in relation to specially protected territories. The same may apply to water resources.
Land Use Period
Clause 8 of Article 39.8 of the Land Code contains information that the respective lease agreement has different validity periods, in particular:
- If the site is provided under the management of LPH or IZHS, then the validity period can reach 20 years.
- Legal entities who wish to use land allotments for the purpose of providing summer cottage or for their development in the complex have the right to sign a lease agreement for a land plot that is in municipal ownership for a period of 3 to 5 years.
- Under certain conditions, land plots with objects of unfinished construction can be transferred for a period of up to 3 years in order to complete the work.
- For a period of 3 to 10 years, it is possible to rent territories on which reconstruction and construction of structures is planned.
- Land for communications and linear facilities are provided for up to 49 years.
- For the time period not exceeding 3 years, the territory is transferred for grazing pets, as well as gardening and mowing.
- The owners of buildings located in the relevant territory, rent is provided up to 49 years.
All conditions and features of the use of land allotments are specified in article 39.8 of the Land Code.
The legislative framework
- In accordance with Ch. 34 and Art. 606 of the Civil Code, the lease of a land plot owned by the municipality may be granted to citizens as well as legal entities for the fee specified in the contract.
- Paragraphs 3 and 4 of the Law “On Private Sector” of Federal Law No. 112 specify that the relevant territories belonging to local authorities may be transferred for personal use with the aim of organizing private household plots.
- Persons in certain professions who are in demand in the countryside may be given land for farming on the basis of Article 39.5 of the Land Code.
- Questions on the allocation of allotments are resolved in accordance with article 39.14 of the code.
- Art.39.16 of the Code clarifies possible refusals and explains the reasons for the decision made by local authorities.
- In accordance with article 39.6 of the Land Code, a lease of a land plot in municipal ownership is carried out.
- 44 Federal Law applies to allotments of land on which buildings of economic management or operational management are located, the owner of which is the customer.
- Also, at the regional level, various legislative acts can be adopted that take into account local conditions for the transfer of territories.
Rental methods
Under the law, various land lease options are possible from municipal authorities, namely, by:
- Auctions.
- Bidding initiated by a citizen.
- Applications of benefits.
- According to a simplified scheme.
Municipal authorities can themselves determine the allotments of land that are leased, but it will not be possible to redeem them. Information about this can be provided in local newspapers and on the city website. At the auction wins the one who provides the maximum amount of rent.
If a citizen has chosen a specific place where he would like to farm, he should familiarize himself with the list of available municipal plots, choose the suitable one (using the cadastral map) and submit a bid application.
There is a category of persons who are given an auction to rent a land plot that is in municipal ownership. ZK RF provides for the possibility of obtaining land for individual housing construction. A regional act, the corresponding benefit can be addressed, for example, to a large family.
According to a simplified scheme, the land is mainly obtained for individual housing construction. To do this, find a free site, apply to the municipality. Bidding will not be conducted only if prior approval exists.
Terms of providing municipal land
Lease of a land plot owned by the municipality is provided if a citizen has lived for at least 5 years in the relevant territory. If it is planned to build a house, then the future tenant should not have their own living space.
If the land is issued under IZHS, then the prerequisite is the construction of a residential facility. The contract with the authorities provides for specific terms and conditions for its construction.
When deciding on the provision of land allotment, municipal authorities pay attention to the material capabilities of citizens, their profession and work, as well as to benefits, if any.
Registration
Lease of a land plot located in municipal ownership and located near the city limits is carried out by submitting an application to the local administration and to the regional land registration office. This procedure is not complicated, but provides for certain features that are established by local legislative acts.
The phased process of how the lease of land owned by the municipal property is as follows:
- The future tenant prepares a package of documents for submission to the administration.
- Authorities check documents and consider the issue within a month.
- After making the appropriate decision, the subject is sent a decision on the allocation of land in writing. If the decision is negative, then the entity may try to assert its rights through the judiciary.
- If the outcome is positive, the applicant must contact the local cadastral office to register the land. Within a month, drawings and schemes of the site will be prepared. After this period, documents are issued to the applicant.
- To complete the registration process, you need to contact the administration and conclude a land lease agreement.
Cadastral services are not provided free of charge.As a rule, it will have to pay a state duty, the amount of which is 6-7 thousand rubles.
Documents
For registration of land allotment, you will need to collect the following documents:
- ID card, TIN.
- A document confirming the marriage and birth of children.
- A document confirming the number of family members.
- A document on whether a person has living space in the property or not.
- Extract from the house book.
- A document confirming the absence of a private plot of land.
- Certificate of benefits (if any).
The main sections contained in the contract concluded with the local administration are as follows:
- Date of conclusion.
- Name of parties to the contract.
- The name of the item.
- Property insurance.
- Parties.
- The purpose of using the allotment.
- Special conditions.
- Special restrictions.
- Lease term.
- A responsibility.
- Unexpected situations.
- Details of the parties to the contract.
The document is executed in triplicate. It must be registered in Rosreestr. The document is entered into legal force from the moment of signing by the parties. Different regions may provide for their own particulars of renting a land plot that is in municipal ownership. They may depend on natural and geographical conditions, as well as acts adopted by the district administration.
Differences in the provision of land for legal entities and individuals
In one and the other case, the procedure has a similar character. Legal entities additionally need to prepare some papers that confirm the legitimate conduct of business. In addition, the size of the state duty paid by legal entities is higher when compared with the state duty paid by citizens.
An individual without registration in Rosreestr up to 1 year old can get a lease of a land plot that is in municipal ownership. The law does not allow at the same time, even for short periods, to own land (without proper registration) to a legal entity.
VAT when providing land for rent
Land is provided for use on a paid basis in the form of land tax and leases. This is stated in article 65 of the RF Labor Code. When a land plot owned by the municipality is leased, the law exempts the tenant from paying VAT. This is stated in paragraph 2 (17) of Art. 149 of the Tax Code of the Russian Federation.
VAT is charged only when land is leased, in which the role of the sublease is not a state, but a private person.
Legal entities are also exempt from VAT. But they will need to make an invoice, mark it “without tax”, register it in a special book and submit the VAT return in a timely manner with the seventh section (which provides for the completion of operations that are not subject to VAT).
Registration cost
Municipal property is not leased for free. You don’t even need to pay VAT, but you will have to pay land tax and rent. But during the registration also have to spend money. The following state duty must be paid:
- For individuals - 2 thousand rubles.
- For legal entities - 22 thousand rubles.
In addition, when preparing documentation in the cadastral service, you need to pay 6-7 thousand rubles. The exact amount depends on the size of the plot, as well as the difficulty level of the schematic display.
In order to feel more confident the tenant, before concluding the contract it is recommended to contact a legal consultation and clarify all the points indicated in the document.
Component rental prices
Rent is a very important part of the contract. It includes basic rates that are set every year. At the same time, the category to which the land belongs, the tenant, the location of the plot and the economic development of the region in which the lease of land is owned by the municipality is important.The accounting period is indicated in the contract. This may be a quarter or a month, during which time it is necessary to pay the rent.
Conclusion
Those who are going to keep a personal farm, engage in farming and sell products will be very beneficial to rent a land plot that is in municipal ownership. IZHS (individual housing construction) who is going to do - can also arrange this profitable deal. But before deciding on such a crucial step, you need to weigh everything and understand the features of the process to the smallest detail. It should be borne in mind that the legislation often changes and those norms that are in force today, may change tomorrow.