Preemptive right to purchase agricultural land

Preemptive right to purchase a land plot (2017)

Learning about the pre-emptive right to purchase a land plot will be useful both for sellers of land plots and for those who are looking for opportunities to acquire land from state or municipal property in a simplified manner. The article will also be useful if you want to defend your right of pre-emption to purchase a plot that is being sold by a private individual. The article provides current information as of 2021.

Land for agricultural purposes. Nuances.

Land for agricultural purposes in the Russian Federation is of particular value, therefore the legal status of these land plots is regulated not only by the Civil and Land Codes of the Russian Federation, but also by Federal Law 101-FZ “On the turnover of agricultural lands”.

101 - Federal Law establishes the rules and restrictions applied to the turnover of land plots and shares in the right of common ownership of land plots from agricultural lands, defines the conditions for the provision of land plots from agricultural lands that are in state or municipal ownership, as well as their withdrawal from state or municipal property.

Nuances of agricultural land turnover:

1) Owners of land plots, land users, landowners, tenants of land plots are obliged to use them in accordance with the intended purpose of this category of land and the permitted use in ways that should not lead to degradation, pollution, littering of land, poisoning, damage, or destruction of fertile soil. Violation of these requirements is grounds for forced termination of land rights.

The turnover of agricultural land is permitted provided that the intended use of the land plot is maintained (clause 3 of Article 1 of the Federal Law).

2) The minimum sizes of land plots for citizens and legal entities are established by the laws of the constituent entities of the Russian Federation. The allocation of a land plot on account of the land share, the area of ​​which will be less than the established minimum size, is not allowed. It is also not allowed to carry out transactions with land plots, for example, in the case of selling part of a land plot, if as a result of such transactions new land plots are formed, the size of which is less than the established minimum sizes of land plots.

3) A subject of the Russian Federation has a pre-emptive right to purchase a land plot of agricultural land upon its sale, with the exception of cases of sale at public auction. If these public authorities refuse to purchase the land, the seller can sell it to any third party.

4) The preemptive right to purchase the land share being sold belongs to other participants in shared ownership , and after their refusal to purchase the land share - from a constituent entity of the Russian Federation or, in cases established by the law of a constituent entity of the Russian Federation, from a municipal entity.

If they also refuse to purchase a land share, then the participant in shared ownership can sell it to any other person.

5) Foreign citizens, foreign legal entities, stateless persons, as well as Russian legal entities, in the authorized (share) capital of which the share of foreign citizens, foreign legal entities, stateless persons is more than 50 percent, may own land plots and land shares from agricultural lands only on a lease basis.

Buying a share of a plot

The process of initializing this procedure is regulated by Article No. 250 of the Civil Code of the Russian Federation. In accordance with this rule, the owner of the share is obliged to notify the other co-owners if he plans to sell his part. Participants can buy out his share, or they can refuse. They should give results within 1 month. In case of refusal, you will have to look for other buyers. The right of first refusal ceases to exist if the real estate is sold through auction. And it is also important to know that if there is a house or other residential property on the plot of land being sold, the land can only be purchased by the owner of the building.

If the transaction is concluded with one of the successful shareholders of the property, there is no need to notify. In other cases, sending out notification correspondence is mandatory, because if the rights of one co-owner are infringed, he can file a claim in court. But since no one needs extra expenses and conflicts, it is worth maintaining order.

Who has the right of first refusal?

According to the Federal Law “On the Turnover of Agricultural Land,” the following have a preemptive right to purchase agricultural land:

1. Subjects of the Russian Federation, with the exception of sales at public auction and cases of seizure;
2. Other participants in shared ownership of a land plot that is in shared ownership, or an agricultural organization using this land plot or a citizen - a member of a peasant farm, to purchase a share in the right of common ownership of a land plot from agricultural lands upon the alienation of such a share by the participant in shared ownership.

Thus, if you sell a share (share) in the right of common shared ownership, then the other participants who have a share in the land plot have the priority right to purchase the land plot.

If the seller alienates a separate land plot for compensation, then the state has the preemptive right to purchase the land plot.

Purchase of a plot with existing buildings on it

Plots owned by the state or municipality can be sold to the owner of the buildings. If there are several owners, shared ownership is registered. Share size per person = shares per building. A different procedure is established in court, or by prior agreement of the parties. This is evidenced by article number 39.3 of the Land Code of the Russian Federation.

To register land, you need to contact the authorized body and write a corresponding application there and attach accompanying documents. These are cadastral certificates for the house and other certificates and extracts. After receiving a satisfactory solution, you can begin the main procedure for purchasing the plot along with all the buildings.

If there are two co-owners and one of them wants to sell his share, he first offers it to this entity. Otherwise, the property may be purchased by neighbors.

The preemptive right of redemption is convenient for those who have benefits, as well as for citizens who already have an allotment. It may be in rental use or in shared ownership.

How to exercise the right of first refusal to purchase an allocated land plot?

When selling an agricultural land plot, a constituent entity of the Russian Federation or a municipal entity has a pre-emptive right to purchase the land plot.

A subject of the Russian Federation or a municipal entity must buy such plots at the price for which they are sold, with the exception of cases of sale at public auction and cases of withdrawal of the plot for state or municipal needs.

The seller of an agricultural plot is obliged to notify in writing the highest executive body of state power of a constituent entity of the Russian Federation. And in cases established by the law of a subject of the Russian Federation, the seller must notify local government authorities of his intention to sell the land plot.

In the notice, the seller must indicate the price, size, location of the land plot and the period before the expiration of which mutual settlement must be made.

The period for making mutual settlements for such transactions cannot be more than ninety days.

If a subject of the Russian Federation or a municipal entity refuses to purchase or does not notify the seller in writing of its intention to purchase the land plot being sold within thirty days from the date of receipt of the notice, the seller has the right to sell the land plot to a third party within a year at a price not lower than the specified price. in the price notice.

When selling a land plot at a price lower than the previously stated price or with a change in other essential terms of the contract, the seller is obliged to send a new notice according to the rules established by this article.

A transaction for the sale of a land plot made in violation of the pre-emptive right to purchase is void.

Where and how to send a notice of sale of agricultural land

In order to notify an entity or municipality of the intention to sell a land plot, it is necessary to submit an application. This service is provided free of charge and the most convenient way to apply is through the State Services portal.

Application methods:

• Personally
• Through a legal representative
• By mail
• On the WEB site
• Through MFC

If you send the notice personally, be sure to hand it in against signature (print a copy and ask the subject’s reception to put a note on receipt of the original, signature and seal on this copy).

If you send by mail, be sure to send a letter with receipt of receipt.

Ways to get results:

• Personally
• Through a legal representative
• By mail
• Through MFC

Service completion period: 30 calendar days.

When the ministry receives a notice, the official of the ministry responsible for receiving and registering documents registers the notice by assigning it an incoming number indicating the date of receipt and draws up a receipt of the specified notice by the ministry in two copies. The first copy of the receipt is issued to the applicant on the day the ministry receives the notification when the applicant directly contacts the ministry or is sent no later than the working day following the day the notification is received, by post with acknowledgment of delivery or through the information and telecommunications network “Internet” when the notification is received by the ministry, respectively through postal organizations or through the information and telecommunications network “Internet”, the second is attached to the notice submitted to the ministry.

Legal entities and individuals can apply for the service.

The following documents must be attached to the application:

• extract from the Unified State Register of Legal Entities/Unified State Register of Individual Entrepreneurs;
• an extract from the Unified State Register of Registered Rights to a land plot;
• cadastral passport of the land plot/cadastral extract of the land plot;
• notice of intention to sell a plot of agricultural land.

Acceptance of a notice is refused if the text of the notice is not legible - which is reported to the person who sent the notice within one day from the date of registration of the notice, if his name and postal address (email address) are legible.

Sample notice

Purchase of agricultural land

The priority right to purchase a plot that is classified as agricultural land is vested in municipal authorities. The cost of the site for the local government does not decrease. The amount of payment is set by the owner. The exception is the sale of an object at public auction.

If the owner wishes to sell an agricultural land plot, he must notify the regional Government and local government. To do this, you must issue a written notification and send it by registered mail or hand it yourself to the secretary of the organization or an official against receipt.

The notice must include the following information:

• plot size;
• location of the object;
• price;
• timing of the transaction.

Important!

The maximum period for completing the transaction should be 3 months.

The regional government or local government must respond to the notice within 1 month. The response may include consent to complete the transaction or refusal to purchase the property.

If there is a written response, the owner can sell the property within 12 months. It is mandatory that notice requirements be maintained for all purchasers. If the owner changes the conditions (reduces the price), the information must be sent again.

A potential buyer who has the right of first refusal provides:

• bank statement confirming the availability of the required amount;
• documents confirming the right of first refusal (lease agreement);
• cadastral passport of the object.

If the right of first refusal is not confirmed, the plot will be put up for auction on general terms.

How to sell a share of agricultural land?

When selling a share (share) in the right of common ownership of a land plot, it is necessary to fulfill the requirements established not only by land, but also by civil legislation.

If the land plot has no more than 5 owners, it is necessary to notify the co-owners about the sale of the share - they will have the pre-emptive right to purchase this share according to the rules of Art. 250 of the Civil Code of the Russian Federation.

If there are more owners, then you can dispose of it only by decision of the general meeting, and sell your share - at the choice of the seller to one of a limited circle of persons:

• co-owner;
• to the agricultural producer operating the corresponding plot (paragraph 2, paragraph 1, article 12 of Federal Law No. 101-FZ).

According to No. 101 - Federal Law, the right to sell a plot of agricultural land can be exercised in two ways.

The first way: allocate your share in kind.

In order to freely dispose of land, it is necessary to carry out land surveying and register the site with cadastral registration. This is called the allocation of a share from the common shared property.

It must be taken into account that the division of a land plot and the allocation of a share is possible with the consent of the remaining owners of the plot. If they do not agree to the allocation, then this procedure can be carried out in court.

After boundary work has been completed and the plots have been registered in the cadastre, it is necessary to register ownership of part of the land.

After the process is completed, you can sell the allocated land plot as an independent object, using the preemptive right to purchase such a land plot by a subject of the Russian Federation.

The second way: do not allocate a land share.

The share to which rights arose after the privatization of various agricultural lands is the property of their owner. The turnover of these lands is determined by regulations at the federal level.

Taking into account their provisions, without allocating a part of the plot, you can : 1) Bequeath it in the prescribed manner; 2) Refuse its possession; 3) Contribute to the authorized capital of the company operating the territory; 4) To sell or donate the plot to a participant in shared ownership or to a permanent user of such land.

It is legally prohibited to sell or donate a share without the process of allocating it to entities that are not shareholders or other participants in land ownership. If such a part was allocated from the general field, it means that a new plot was formed, boundary work was carried out and its limits were designated, registration was carried out in Rosreestr, it can be sold or gifted to an interested person.

It should be noted that the sale of such lands is carried out taking into account the pre-emptive right of acquisition by the constituent entity of the Russian Federation, as discussed in the previous chapter.

How to exercise the right of first refusal to purchase a share of a land plot?

If you are one of the owners of shares in the right of common ownership of an agricultural land plot, then you have a pre-emptive right to purchase that share of the land plot that is being sold.

The owner of the share being sold must notify you of his intention to sell the share by sending a written notice. To do this, he will need to send you a notice of intention to complete a transaction with an exact indication of its price, which cannot be changed in the future. If this condition is violated, the transaction may be declared invalid by the court, and the rights and obligations of the buyer may be transferred to the applicants.

It is possible to transfer the owned share to an outside entity only if the remaining owners renounce their advantage.

If a participant in shared ownership of a land plot of agricultural land sells his land share without allocating a land plot on account of his land share to another participant in shared ownership , as well as an agricultural organization or a citizen member of a peasant (farm) holding using the land plot, being in shared ownership, it is not required to notify other participants in shared ownership of the intention to sell their land share.

If, during the transaction, the seller violates the necessary requirements that were previously transferred to the owners, who have the authority to carry it out in court within 90 days with the transfer of the rights and obligations of the acquirer.

Regulatory regulation of pre-emption

The issue of acquiring a land plot into ownership is regulated by the following regulations:

• Land Code;
• Civil Code;
• Federal Law No. 159 of 2008 (regulates real estate transactions);
• Federal Law of 2006 No. 256 (for families with children);
• Federal Law No. 101 of 2002 (for agricultural land).

In 2015, the right of preemption to purchase land plots was excluded from the Land Code. However, other regulations contain these rules in full.

It is possible to register ownership only of a land plot that has undergone cadastral registration (Article 37 of the Land Code).

Waiver of the right of first refusal

Relinquishment of ownership of a land share is carried out by submitting an application to Rosreestr. The right of ownership to a land share is terminated from the date of state registration of the termination of this right.

At the same time, the ownership right to this land share arises in the urban district, urban or rural settlement at the location of the land plot, the ownership right to the land share of which was renounced.

Transactions with land shares can be carried out on the basis of a power of attorney issued by a participant in shared ownership to another participant in shared ownership or another person and certified by an official of a local government body or certified by a notary.

Within six months from the date of emergence of the right of municipal ownership of a land share, a local government body has the right to sell this land share to an agricultural organization or peasant (farm) enterprise using a land plot that is in shared ownership.

An agricultural organization or a peasant (farm) enterprise has the right to purchase a land share that is in municipal ownership at a price determined as the product of 15 percent of the cadastral value of one square meter of such land plot and the area corresponding to the size of this land share.

No later than within one month from the date of emergence of the right of municipal ownership of a land share, the local government body of the municipal formation in whose ownership this land share is located is obliged to publish it in the media determined by the subject of the Russian Federation and post it on its official website on the Internet. “Internet” (if available) information on the possibility of acquiring a land share under the conditions provided for in this paragraph. This information is also posted on information boards located on the territory of this municipality.

If none of the persons specified in this paragraph has entered into a contract for the purchase and sale of a land share, the local government body, within a year from the moment the right of municipal ownership to it arises, is obliged to allocate a land plot on account of the land share or land shares belonging to it, subject to non-violation at the same time, requirements for the land plots being formed.

Free pickup and redemption restrictions

In addition to the standard procedure, during which land becomes purchased from leased land, there are exceptional cases when obtaining ownership becomes impossible or, conversely, is provided free of charge.

It is impossible to buy back lands that:

• withdrawn or restricted in circulation;
• prohibited for privatization;
• reserved by local governments.

You can register ownership without payment in the following scenarios:

• if the leased areas have been significantly improved and developed by the user;
• Religious sites have been built on the territory;
• the plot is allocated from the common plot of the dacha cooperative;
• the site was used by a person free of charge for more than five years;
• providing land use to large families.

The process of taking possession of leased land is not very difficult. If all the conditions set forth by law have been met, then it is enough to simply submit documents to the municipal authority and receive confirmation of ownership.

Conclusion

The preemptive right to purchase agricultural land is one of the principles of agricultural land turnover.

Subjects of the Russian Federation or municipalities have a preemptive right to purchase such land plots when selling a separate land plot. When selling a share in the common ownership of land, the participants in shared ownership or permanent users of the land (peasant farms, agricultural organizations) have a priority right to purchase.

If the principle of pre-emptive right to purchase a land plot is not observed, the transaction with a third party will be considered invalid. Therefore, when purchasing an agricultural plot, before concluding a purchase and sale agreement, it is necessary to request from the owner, in addition to the title documents, a Refusal to purchase the land plot or Consent to sell the plot to a third party.

Purchase of land plots by small and medium-sized businesses

If an entrepreneur rents a plot of land from the state or municipality, then he also has the opportunity to purchase it at the market price. However, not all representatives of small and medium-sized businesses have the right to count on this.

Thus, the following business representatives do not have a preemptive right to purchase:

• investment funds;
• Insurance companies;
• financial and credit firms;
• pawnshops;
• representatives of the gambling business;
• non-state pension funds;
• securities market participants;
• foreign organizations;
• companies engaged in mining and processing of minerals;
• participants in production sharing agreements.

In order for the purchase of a land plot to become possible, three conditions must be met. First, the lease must be valid for two or more years. Secondly, the entrepreneur should not have rent arrears. Thirdly, leased property is not included in the list of state or municipal property transferred for use to businessmen.

To exercise the pre-emptive right, the entrepreneur is sent a proposal to conclude a transaction and a draft purchase and sale agreement. If the businessman agrees, he must buy the land within 30 days. Otherwise, he loses the opportunity to purchase the plot.