Russia’s new land code in effect.
On October 30, 2001, the new Land Code of the Russian Federation became law. It
focuses on urban land and is expected to stimulate the real estate market by
providing a legal basis for transferring urban land, facilitating transfer of
state-owned urban land to private parties, and granting foreigners almost the
same rights in real estate transactions. In particular, the land code gives
building owners the opportunity to purchase the land on which their buildings
stand from the State or Municipality. Also investors may acquire land provided
that they have obtained the necessary approvals. For future private sales of
buildings or structures, the law requires that those be sold together with the
land upon which they are built although the property titles for the land and
the building remain separate. This essentially grants a right of first refusal
for the land to owners or future purchasers. The Land Code provides a formula
for calculating the sales price at which existing building owners may purchase
the underlying land. This price depends on the size of the lot, the land tax
rate, the use of the building, and several other factors. This applies both to
Russian and foreign parties. The end result tends to be a relatively low
purchase price, which should encourage private ownership. Future legislation
will deal with agricultural land. On March 19, 2002. the Russian Government
submitted a draft law called: “The Law on Agricultural Land Turnover” to the
Duma (Parliament) on March 19, 2002. Citation: Report of U.S. Commercial
Service Moscow, distributed by BISNIS Service of U.S. Department of Commerce,
Phone: (202) 482-2022; website: “www.bisnis.doc.gov”.
**** Mr. William B. Blanchard (“Bill Blanchard”) is a Real Estate Attorney with offices in St. Charles and Oakbrook Terrace, Illinois. Bill specializes in representing real estate clients for purchases and sales as well as home owner real estate tax assessment appeals. Mr. Blanchard is General Counsel for Gaia Title, Inc. a title insurance agency and settlement services provider. The Company is owned by real estate attorneys who demand exemplary title insurance services and accurate and efficient settlement services. As General Counsel he is responsible for title examination, commitment and policy review, escrow settlement supervision and regulatory review. - Attorney Profile: https://solomonlawguild.com/william-b-blanchard%2C-esq - Attorney News: https://attorneygazette.com/william-blanchard%2C-esq#40b43d7b-94b2-48d3-b055-1979a636f1e7
