Land law undergoes significant changes

4 december 2014

The Conference "Topical issues of provision of land for development" took place in the Analytical Center. During the Conference experts discussed bases for the origin and termination of building leasehold and considered the legal system and past arbitration court rulings in the sphere of provision of land for development.

"The roundtable theme is really actual, as for a long period of time main reasons for bad construction in all spheres - industrial, housing, infrastructural, were issues of land property and legal relations division, connected to rights registration for constriction development", said the Deputy Head of the Analytical Center Vladislav Onischenko opening the roundtable. The sector has a strong hold upon other sectors as from the very beginning construction materials, labor force and transport are needed, according to the expert. "Then, for economic growth speed up it is necessary to assist construction bulking. However, this sphere is of law progress as it is expensive and lasts for a long time", considers the expert.

Land laws transform faster than other sectors, recently several draft laws were considered, according to the Head of the Directorate for Land and Property Regulations Natalia Zhavoronkova. "We can say that a drastic demolition of land law and the transition to a completely different system have happened" said the expert, adding that there are 3 main change units. The first one - on March 1, 2015 the Federal Law dated June 23, 2014 N 171-FZ "On Amendments to the Land Code of the Russian Federation and Certain Legislative Acts of the Russian Federation" entry into legal force. "The law is aimed to improve efficiency and reduce of terms for provision of land for construction. We have less than 50% of the land divided into plots, the rest is not distributed", said the expert.

The second unit - changes in the Civil Code and the introduction of construction rights categories, which replace lease relations. The third change - the law on abolition of land use categories and the transition to land zoning. Now there is a convergence of civil and land codes, in the Land Code a new concept of land as a civil relations object was introduced. The Head of the Legal Department of the National Association of Builders Alexei Surkov assented to Ms. Zhavoronkova opinion that a civil land laws fusion began. The land law is undergoing intense changes, particularly in integrated land development and the development of built-up areas, noted Mr. Surkov.

On practical issues of integrated development for housing implementation spoke the Head of the legal department of the Managing Company "EcoDolie" Ivan Kudryashov. The law does not define the concept of integrated urban development, so it cannot be implemented on private land, he noted. The expert suggested defining this concept and establishing procedures to contract signing during the private lands reclamation. "Site infrastructural support requires significant investment, and accordingly - participation of all parties involved in the process in the infrastructure development. In practice it turns out that built-up areas are not provided with the infrastructure and necessary mechanisms for interaction between public authorities and developers have not been established", said Mr. Kudryashov. Among other problems, the expert outlined territories integrated development opacity terms and an unethical competition high proportion in low-rise construction.

During the conference experts discussed Russian building leasehold model and harmonization of land and town-planning legislation in a part of land for development provision.