Procedure for provision of land without bidding

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Published: 01/13/2017

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According to the current legislation, plots can be provided on a paid or free basis after bidding.

But, it is possible to obtain a plot without bidding.

What is required from the applicant and what are the features of this procedure?

• Legislation
• Grounds for obtaining a land plot without bidding for free
• Methods for obtaining Rent and how the price is formed in this case
• Purchase and how the price is formed

Legislation

Since March 2015, important amendments to the Land Code have been in force.

One of the key innovations was the addition of a chapter to the current legislation that regulates the provision of land to citizens or legal entities from state and municipal funds.

These aspects are covered in detail in Chapter 5.

The new chapter contains regulations for the allocation of land in favor of individuals or legal entities for rent, free use, perpetual possession or ownership.

Plots are allocated under two procedures:

• without tendering;
• with an auction (bidding).

Obtaining land without bidding allows you to significantly simplify the acquisition procedure, reduce its completion time and obtain a plot at a lower price. Therefore, this option is more preferable.

The list of grounds for providing plots without bidding on different ownership rights is given in Article 39 of the Land Code. Here are indicated both cases that allow you to buy land from the state without bidding, as well as the grounds for receiving it free of charge.

Grounds for obtaining a land plot without bidding for free

The Land Code contains eight conditions for obtaining a plot without bidding:

• If the person has a concluded agreement on the development of the built-up area.
• When religious buildings and structures are located on the site (the land is transferred to a religious organization).
• The plot has an agricultural purpose and was previously transferred to a religious organization on a perpetual use basis.
• The site was formed as a result of the division of land provided to NPOs for gardening and horticulture.
• The site was previously transferred to citizens for private plots or peasant farming. But its transfer from ownership is allowed no earlier than after five years, subject to its targeted development.
• The land was provided free of charge for private plots or individual housing construction. At the same time, it must be mastered within 5 years in accordance with the permitted application, and the citizen must work in a municipality in one of the priority specialties during this entire time. The list of specialties that are particularly significant for the region is determined by local authorities.
• Land is allocated to citizens who have three or more children (usually plots for individual housing construction). At the same time, at the regional level, additional requirements may be imposed on large families: for example, official recognition of a family in need of improved housing conditions, living in emergency housing. Some municipalities allow the possibility of using other social support measures to provide housing instead of allocating plots.
• In other cases provided for by regional regulations.

This opportunity can be reserved for veterans, pensioners, low-income people and other categories of citizens.

Thus, recipients of land for free use can be individuals, legal entities, religious organizations, non-profit organizations, and peasant farms. The plots are provided for individual housing construction or agricultural needs.

What lands and when can you get without bidding?

According to current legislation, certain land plots can currently be obtained into ownership without participating in auctions.

These areas will include:

• Land for individual housing construction and personal farming;
• To create a farm or peasant enterprise, as well as to organize agricultural production;
• For the development of the housing stock (in the event that the agreement on the implementation of such activities is concluded with the person carrying out such development);
• To form infrastructure facilities;
• For the organization of religious buildings and monuments (but only for those representatives of religions whose activities are not prohibited on the territory of the Russian Federation).

This list of categories is established in the Land Code and can only be expanded if appropriate changes are made specifically to it.

In other cases, land plots cannot be provided without bidding.

If we talk about when it is possible to formalize the transfer of ownership without bidding for a particular land plot, it should be noted that before such a right occurs, certain conditions must be met:

• The purchased land plot must be used for a certain time by the potential buyer for its intended purpose (if we are talking about the acquisition of land for individual housing construction or private household plots, as well as for a farm);
• If all plans for the development of housing stock or infrastructure facilities have been agreed upon;
• If the need for the construction of a particular religious monument has been fully proven (for example, an old temple is being destroyed and there is no way to restore it, since the building is considered completely unsafe).

If such conditions are not met by the potential owner, then the transaction may be refused.

Methods of obtaining

Rent and how the price is formed in this case

Provision of a land plot from state or municipal property without bidding is also permitted.

The list of situations that authorize the authorities not to hold an auction is quite extensive.

Thus, individuals can count on concluding a lease agreement without bidding in the following cases:

• Allocation of a plot of land previously transferred for the integrated development of the territory for individual housing construction, for gardening, vegetable gardening and dacha farming.
• Lease of land that is reserved for state and municipal needs.
• Obtaining a plot for haymaking, grazing agricultural animals, gardening, maintaining private household plots outside the boundaries of the settlement.
• When a farmer or head of a peasant farm applies for land.
• Upon receipt of any land plot by citizens who have the right to priority acquisition.
• When replacing a previously allocated site that was withdrawn for state and municipal needs.

An individual can rent land for individual housing construction, private plots, summer cottage farming or gardening without bidding in accordance with Article 39.18 of the Land Code. It involves the need to publish a message about the auction in the media, and in the absence of others willing to rent this land, its transfer for use to the applicant.

Legal entities, non-profit organizations, religious associations, and subsoil users can also rent land from the state without bidding.

When determining the annual rental cost, the authorities take into account the cadastral value, and in its absence, the market value. Basic rental rates are developed annually by local authorities taking into account the economic development of the region and its specifics. At the same time, significant attention is paid to the intended purpose of the site, its area, as well as the value of the land, its characteristics and the environment.

Typically, the rental rate is set at 1.5% of the cadastral value, but can reach 0.3%.

Purchase and how the price is formed

Citizens and legal entities have the opportunity not only to rent land from the state, but also to buy it into ownership without bidding (privatize it). The advantage of this option is that those who want to buy land from the state do not have to worry that during the auction the price of the plot will skyrocket.

Land from state and municipal property is sold at cadastral value (if the assessment was carried out no more than 5 years ago).

According to the standard, local authorities must announce an auction, and if there are no willing buyers of the land within 30 days, they can begin to prepare a purchase and sale agreement.

The right to purchase land from the state at a symbolic price is reserved for those citizens who previously rented a plot from the state for individual housing construction and managed to erect a building on it within five years. These citizens have a certain advantage: they have the right to buy land for 2.5-3% of the cadastral value.

How is the price determined?

In the case of acquiring land from the administration, it is very profitable to carry out such a transaction without participating in auctions.
This is due to the fact that the price for a specific plot will be much lower. This is due to the mechanism for setting the price for a specific plot.

So, if there is a paid acquisition of land, its cost will be determined based on a similar cadastral value. At the same time, you need to know that in each specific case the calculation of the value will be carried out based on the purpose for which the land is being purchased.

So, for example, if it is used for individual housing construction, its value can range from 3 to 100% of the same cadastral value (in the event that a house on such a plot has not yet been built).

In the event that we are talking about the use of a land plot for organizing agricultural production (if it is impossible to develop the plot free of charge), then the price here cannot be more than 3% of the cadastral value of a specific plot.

In the case of purchasing a plot at auction, the value will be calculated from the cadastral to the average market value for a specific type of plot.

Required documents

Obtaining a plot without bidding begins with the receipt and registration of documents from the applicant. Those wishing to obtain land without going through the auction must submit an application for preliminary approval.

The header of the document contains the names of the executive authority responsible for the provision of public services in the region, as well as the full name and contact information of the applicant.

The main block of the statement states:

• Full name of the applicant, place of residence, passport details (for individuals);
• name and legal address of the applicant, his tax identification number and checkpoint (for legal entities);
• cadastral number of the land plot on which the requested plot is to be formed;
• details of the decision on land surveying, territorial planning project, seizure of land for government needs (if any);
• an indication of the desire to take the plot without bidding with reference to the legal basis (for example, Article 39.5 of the Land Code);
• the type of title under which the applicant would like to obtain the land (ownership/lease);
• purpose of land use;
• contact information (email or postal address, telephone).

The application contains all the documents that are attached to the application.

Among them:

• documents that confirm the right to purchase land without bidding;
• site layout diagram;
• design documentation on the area, boundaries of the site;
• documents confirming the authority of the applicants;
• lists of NPO members.

The specified list of documents is approximate and depends on the list of grounds for obtaining land.

Benefited categories of citizens may be required to present, for example, a veteran’s ID, birth certificates for children (for large families), a pension certificate; a document confirming the need to improve living conditions, etc.

Regulations for the provision of land without bidding

Each municipality must develop regulations for the provision of land without bidding.

In general, this procedure consists of five key steps:

1. Reception of documentation from the applicant.
2. Review of the received application and documents.
3. Request for additional documents and information that may be needed to provide government services.
4. Preparation and decision-making, development of a draft agreement.
5. Issuing the appropriate resolution to the applicant or signing an agreement.

Reception of documents from the applicant can be carried out through the authorized executive body, by mail, through the MFC, electronically, through the government services portal.

Based on the results of receiving the documentation, the accepted application is recorded in a special journal, and the applicant is given a receipt with a list of submitted documents and the date of their acceptance.

• After receiving the submitted documentation, the authorized person checks them for completeness and compliance with the law;
• establishes whether the requested land belongs to municipal or undemarcated state property (in the latter case, local authorities do not have the right to lease it out: this is not within their competence);
• verifies the applicant's compliance with basic requirements.

All of these procedures should take no more than 10 days.

If necessary, an administration specialist submits an interdepartmental request to obtain the necessary data.

If there are no grounds for refusing preliminary approval, the specialist publishes information about the provision of land for ownership or lease in the media (usually the official newspaper of the municipal authorities). This is followed by a thirty-day waiting period, during which everyone can declare their rights to participate in the auction.

The result of this stage may also be the return of the application indicating

reasons for refusal of preliminary approval of the site.

If other applicants for the land plot have not shown up within 30 days, then a decision is made on preliminary approval.

After receiving a resolution from the administration, the applicant must contact cadastral engineers and develop technical documentation for the land and determine its boundaries. Then you need to register the plot of land with Rosreestr and obtain a passport for it.

The procedure is completed by submitting an application for the allocation of a plot of land for rent/ownership to the administration and signing the corresponding agreement: lease, purchase and sale or free use.

Rent of land through auction

In cases that are not subject to the provisions of Article 39.6 of the Land Code of the Russian Federation, and also if there are several applicants, auctions are held at which the lease right to a certain plot of land is sold. This process takes several months.

The auction can be initiated by an authorized executive body or at the request of interested parties who have submitted an application. Individuals and legal entities can become bidders, depending on the purpose for which the land is needed. The law prohibits combining several plots into one lot. 30 days before the start of the auction, the authorized body publishes a notice about it.

To participate in the auction, applicants must provide:

• application for participation;
• copy of passport (for individuals);
• Unified State Register of Legal Entities, Unified State Register of Individual Entrepreneurs (for organizations);
• receipt for payment of the deposit.

The winner of the auction is the one who offered the highest price for the plot, or its only participant.

If a land plot does not comply with the requirements of Article 39.11 of the Land Code of the Russian Federation, then it cannot be a auction lot.

Rent amount when leasing a land plot for 49 years

The procedure for calculating the amount of annual rental payments is determined by authorities at different levels, depending on whose jurisdiction the land is located.

There are several ways to calculate it (FZ-582 dated July 16, 2009):

• at the cadastral price of the land plot;
• based on the results of the auction;
• at rental rates;
• at the market price of the plot.

If land is provided for long-term use without an auction, then rental payments are determined in the following percentages of the cadastral value of the plot:

In the case of several persons on the lessee's side, the amount of payments is proportional to their shares in the right to the leased plot.

The rent can be recalculated no more than once a year.

If the plot is obtained at an auction, then in accordance with paragraph 2 of Article 39.7 of the Land Code of the Russian Federation, the amount of rent is determined based on the results of this auction. Learn more about land taxes.

Lease of plots for 49 years from agricultural land

Agricultural land can be rented for a period from 3 to 49 years (except for areas for hay production and livestock grazing - for which the period is limited to 3 years).

Obtaining agricultural land ownership does not differ from the procedure for obtaining land from other categories. Without bidding, such a plot can be obtained by peasant farms and legal organizations involved in agricultural production by writing a corresponding application to the local government body. At the same time, the right of municipal ownership must be registered for the land plot of interest. If there are still people willing to rent this plot, an auction will be held. The law does not limit the total area of ​​land plots per tenant.

If the lease ends, the tenant has the right to enter into an agreement for another term without holding an auction. The rent in this case is 0.3% of the cadastral price of this plot.

Possible reasons for refusal

Before submitting an application for the allocation of a plot of land, you should familiarize yourself with the regional regulations that regulate this procedure. They must contain a detailed and exhaustive list of grounds for refusal to provide public services.

Civil servants themselves do not have the right to engage in rule-making and come up with their own reasons for refusal.

A citizen can be refused both at the stage of accepting documents and after receiving them. In the first case, the reasons may be the inconsistency of the submitted mandatory composition, form and requirements of the current law, the absence of documents from the general list, the presence of corrections and typos in the documents.

Other possible reasons for refusal include:

• an application was made by a person who is not entitled to a plot without bidding;
• the site was occupied by the time the application was received or preliminary approval was received for it and bidding was planned;
• the site was transferred to an NPO;
• there are built objects on the land that belong to another owner;
• the land was withdrawn from the municipal fund or from circulation;
• the intended purpose of the land does not correspond to that specified in the application;
• The area of ​​the site exceeds the regional standard.

What is the assignment of the right to lease a land plot? When buying an apartment you can get a tax deduction. Read more about this in our article.

Do you want to take ownership of a plot leased for 49 years? There are detailed instructions here.