INVESTMENT IN BUILDING OF IMMOVABLE PROPERTY THROUGH ACQUISITION OF RIGHT OF PROPERTY FOR LAND

The actions of investor in this type of activity are regulated by the followings management directives:

  • the Code of the Republic of Belarus on land from July, 23, 2008 425-Z.
  • the Edict of the President of the Republic of Belarus from 27.12.2007 667 "On the attachment and granting of lands";
  • the Enactments of the Council of Ministers of the Republic of Belarus: from 26.03.2008 462 "On some measures on realization of the Edict of the President of the Republic of Belarus from December, 27, 2007 667";
  • from 20.02.2007 223 "On some measures on improvement of architectural and building activity" (in red. of the decisions of Council of Ministers from 22.12.2007 N 1802, from 26.03.2008 N 461);
  • from 20.02.2007 223 "On some measures on improvement of architectural and building activity" (in red. of the decisions of Council of Ministers from 22.12.2007 N 1802, from 26.03.2008 N 461);
  • from 20.03.2008 427 "On determination of model form of leasing contract of land";
  • from 28.02.2006 293 "On approval of technical and economic indexes of criteria of rating as dwelling-houses of superior comfort";
  • the Decision of Minsk Executive Committee from 20.06.2007 1481 "On approval of lists of lands for granting in accordance with established procedure according to the results of auction".

1. Types of property rights on land

Lot lands can be the property of land users on the followings rights:
  • of public and private domain, and also on the right of ownership of the foreign states, international organizations;
  • lifelong heritable domain;
  • permanent use;
  • temporal use;
  • leases (subleases).
Lot lands are given in the permanent use (use without beforehand set term):
  • to the government bodies, to other state organizations (except for granting of lot lands for building of the filling stations) - for realization of tasks and functions, that are stipulated by legislation;
  • to the non-state legal entities of the Republic of Belarus - for maintenance of objects of the real estate, being in the state property;
  • to agricultural organizations, including farms, to other organizations for the conduct of agriculture, including farm, and also for the conduct of subsidiary agriculture;
  • to scientific organizations, to establishments of education - for research or educational aims in the sphere of agriculture or forestry;
  • to public forestry institutions, organizations of local executive committees, in jurisdiction of which there is the conduct of woodland park forestry, - for the conduct of forestry;
  • to religious organizations - for building of cultural structures and places of burial;
  • to the garage (garage-build) cooperatives and cooperatives, carrying out the exploitation of parking, - for building and exploitation of garages, parking for storage of transport vehicles of citizens of the Republic of Belarus - members of such cooperatives;
  • to organizations of citizens-builders - for building of apartment dwellings houses (except for the dwelling-houses of superior comfort in obedience to criteria, that are determined by the legislative acts), and also for service of dacha cooperatives - for the conduct of the collective gardening and dacha building (lot lands of the general use of gardening associations, dacha cooperatives).
The legislative acts can stipulate other cases of granting of lot lands in the permanent use.
In the temporal use the lot lands can be given within ten years, except as otherwise provided by this Code and other legislative acts:
  • to the citizens of the Republic of Belarus for the truck farming, haymaking and pasture of agricultural animals - within ten years;
  • to the citizens of the Republic of Belarus for building (placing) of temporal individual garages in places - within ten years;
  • to the national and foreign investors on the basis of concession agreements - within ninety nine years in accordance with this Code and other acts of legislation on conservation and use of lands and on investment activity.
The legislative acts can stipulate other cases of granting of lot lands in the temporal use. Lot lands can be given in lifelong heritable domain to the citizens of the Republic of Belarus:
  • for building and maintenance of dwelling-house - in cases, stipulated by the President of the Republic of Belarus, when lot lands are given without auction;
  • for maintenance of dwelling-house belonging to them on the right of ownership or other legal cause, of registered organization according to the state registration of apartment in the blocked dwelling-house;
  • for the conduct of personal subsidiary plot in rural places, settlements of city type - registered domiciliary in these settlements;
  • for the conduct of peasant (farmer) economy;
  • for the collective gardening;
  • for dacha building;
  • for traditional folk trades (occupations);
  • in case of inheritance of lot land, given to the legator before in lifelong heritable domain.
The legislative acts can stipulate other cases of granting of lot lands in lifelong heritable domain.
Private property there can be lot lands in private property:
  • purchased by the citizens of the Republic of Belarus, constantly resided in the territory of the Republic of Belarus or equated to constantly resided in accordance with the legislation of the Republic of Belarus, and also transferred to the citizens of the Republic of Belarus for building and maintenance of one-flat, blocked dwelling-houses (except for the cases when lot lands are in use, lifelong heritable domain of these citizens or on the right of lease, but with located on them the dwelling-houses belonging to the citizens on the right of ownership) according to the results of auctions on the sale of lot lands in private property;
  • transferred to the legal entities of the Republic of Belarus, including enterprises with foreign investments (hereinafter referred to as legal entities of the Republic of Belarus), during the privatization of objects of public domain, and also to the non-state legal entities of the Republic of Belarus according to the results of auctions on the sale of lot lands in private property, in cases that are stipulated by the legislative acts. List of state objects, during the privatization of which together with the objects lot land can be transferred in property, is established by the President of the Republic of Belarus;
  • Lot lands also can be transferred in property of the legal entities of the Republic of Belarus during the realization of investment projects.

Lot lands can be transferred in property to the foreign states in order and on conditions, foreseen by the article 37 of the Code of the Republic of Belarus on land.
Lot lands can be given in lease to the citizens, individuals, legal entities of the Republic of Belarus, foreign legal entities and their representative offices, to the foreign states, diplomatic representative offices and consular establishments of the foreign states, to international organizations and their representative offices in accordance with this Code and other acts of legislation on preservation and use of lands.
The lessors of lot lands, being in public domain, are public bodies, carrying out government control and management in the sphere of use and preservation of lands in accordance with their jurisdiction, foreseen by this Code and other acts of legislation.
The lessors of lot lands, being in public domain, can be administrations of free economic zones in case of granting of lot lands to the residents of the proper free economic zones within the bounds of these areas with the realization if necessary of transfer of lot lands from one categories in other, including with conclusion of the leasing contracts of these lot lands, if these rights are delegated by the corresponding regional, Minsk and by urban (cities of regional subordination) executive committees in accordance with their jurisdiction, stipulated by this Code.
Citizens, non-state legal entities of the Republic of Belarus, having lot lands in private property, can be the lessors of these lot lands on condition of adherence of its designated purpose.
Terms and other terms of lease of lot land are determined by leasing contract of lot land. The term of lease of lot land for conduct of agriculture can not be less than ten years. Term of lease of lot land, being in public domain and given for purposes, related to building and (or) maintenance of capital structures (buildings, constructions), must be not less than the standard term of building and (or) exploitation of these capital structures (buildings, constructions). Granting of lot land for more short term can be carried out only by approbation of people which are given this lot land. The term of lease of lot land must not exceed ninety nine years.

note

The form of leasing contract of lot land is ratified by the Decree of the Council of Ministers of the Republic 20.03.2008 427 On determination of model form of leasing contract of lot land. In accordance with the Decrees of the President of the Republic of Belarus from 07.07.2008 365 On collection of payments for land and according to the decision of Minsk Executive Committee from 11.09.2008 2150 On determination of coefficients to the base rates of annual rent for lot lands in Minsk. The base rates of annual rate for land lots in the state ownership shall be determined by local executive and administrative bodies on the basis of cadastral value of these lots with application of quotients depending on the designated purpose of the land lots and economic and project area where land lots are located

Granting of lot lands in use, private property, lifelong heritable domain, transfer in lease, except for the cases of lease of lot lands, being in the private property of citizens of the Republic of Belarus, carried out in order of their allotment.
Granting in lease of lot lands, being in private property, is carried out in accordance with the civil legislation.
Allotment is made on the basis of decisions of corresponding executive and administrative bodies in order, established by the legislation of the Republic of Belarus (the of the President of the Republic of Belarus from 27.12.2007 667).

Decisions on granting of lot lands in use, lifelong heritable domain, on transfer of them in lease or property contain purpose for which they are allotted or transferred, and terms of allotment.

2. Acquisition of property rights on land

In accordance with the legislation of the Republic of Belarus lot lands are given according to the results of auctions:

  • for the right for conclusion of the leasing contracts of lot lands - in lease to the citizens, individuals and legal entities;
  • with terms for the right of planning and building of capital structures (buildings, constructions) - in lease to the individuals and legal entities;
  • on the sale of lot lands in private property - in private property to the citizens of the Republic of Belarus for building and maintenance of one-flat, blocked dwelling-houses (except for the cases when lot lands are in use, lifelong heritable domain of these citizens or on the right of lease, but with the dwelling-houses located on them belonging to citizens on the right of ownership), and also to the non-state legal entities of the Republic of Belarus in cases, stipulated by the legislative acts.

3. Acquisition of property rights on land without auctions

Without auction for the right for conclusion the leasing contracts, auction with terms for the right of planning and building of capital structures (buildings, constructions) and auction on the sale of lot lands in private property lot lands are given on the laws of property in accordance with legislative acts in the area of preservation and use of lands:
  • to state bodies, other state organizations (except for granting of lot lands for building of filling stations);
  • to agricultural organizations, including peasant (farm) economies, to other organizations - for the conduct of rural, subsidiary agriculture;
  • to scientific organizations, to establishments of education - for research or educational aims in the area of agriculture or forestry;
  • to government forestry establishments, organizations of local executive and administrative bodies, the in jurisdiction of which there is conduct of forest-park economy, - for the conduct of forestry;
  • . to the religious organizations, other legal entities and individuals - for building of cultural structures and places of burial;
  • to the citizens of the Republic of Belarus, being in the account of needy in improvement of housings conditions, constantly resided in places and worked in these places or in the territory of districts, where such places are situated, - for building and maintenance of one-flat, blocked dwelling-houses in these places;*
  • *The effect of this indention does not spread on the citizens, being in the account of needy in improvement of housings conditions, constantly resided and (or) worked in Brest, Vitebsk, Gomel, Grodno, Minsk, Mogilev.
  • to the garage (garage-build) cooperatives and cooperatives, carrying out the exploitation of parking, - for building and exploitation of garages, parking for storage of transport vehicles of the citizens of the Republic of Belarus - members of such cooperatives;
  • to the citizens of the Republic of Belarus - for the conduct of the personal subsidiary economy, peasant (farmer) economy, traditional folk trades, truck farming, haymaking, pasture of agricultural animals, and also to the separate categories of citizens of the Republic of Belarus in accordance with legislation - for building (placing) of temporal individual garages;
  • the gardening associations, to the citizens of the Republic of Belarus - for conduct of the collective gardening;
  • to the citizens, to the individuals and legal entities, if according to the terms of allotment it is required grant by him other lot land instead of withdrawn (including instead of set to the withdrawal and grant these persons);
  • to the citizens, to the individuals and legal entities - for execution of documents certified of the right on lot lands, on which capital structures (buildings, constructions) belonging to them on the right of ownership or other legal cause are located;
  • to the citizens, to the individuals and legal entities, getting of permission of rural, settlement, city, district executive committees for project-findings works for building in Minsk, regional centers and suburban areas of these cities of capital structures (buildings, constructions)in the order established by legislation till May, 2, 2006, if the conduction of auctions upon this date not provided for laws or decisions of the President of the Republic of Belarus;
  • to the citizens, individuals and legal entities, getting of permission of rural, settlement, city, district executive committee on the conduction of project-findings works for building of capital structures (buildings, constructions) in the territory, not indicated in the thirteenth indention of first part of this clause, in the order established by the legislation till January, 1, 2008, if the conduction of auctions upon this date, not stipulated by laws or decisions of the President of the Republic of Belarus;
  • to the residents of free economic zones - for building and maintenance of objects of the real estate in these areas;
  • in case of necessity to take the additional lot land, if during the reconstruction of existent object without the change of its functional purpose or in the course of implementation of project-findings works, it turns out that for building of object it is required lot land of greater size;
  • during the acquisition of buildings in process, not laidup capital structures (except for the dwelling-houses and dwellings apartments in process), the decision on alienation which is accepted by the President of the Republic of Belarus;
  • to the legal entities and individuals - for the placement object of the real estate in the territory of the Republic of Belarus, if building of such object and concrete legal entity, individual are determined by the decision of the President of the Republic of Belarus or by the government program, ratified by the President of the Republic of Belarus or by the Council of Ministers of the Republic of Belarus;
  • according to the decision of the President of the Republic of Belarus in other cases

Except as otherwise provided by the President of the Republic of Belarus, in case of granting of lot lands in lease for purposes, indicated in points of first - sixth, eighth - eleventh, payment for the right of conclusion of leasing contracts of these areas is not levied, and for purposes, indicated in points of seventh, twelfth - seventeenth, such payment is levied on the basis of their cadastre cost. Size and terms of paying for the right of conclusion of leasing contracts of lot lands for purposes, indicated in point of eighteenth, determined in accordance with the decision of the President of the Republic of Belarus.
The order of determining of payment for the right of conclusion of leasing contracts of lot lands, given without auctions, and also the initial offering price of the article of such auctions is set by the Council of Ministers of the Republic of Belarus.

Without auction on the right of the conclusion of leasing contract, lot lands for building and maintenance of apartment dwellings houses (except for the dwelling-houses of superior comfort*), are given to the legal entities and individuals in permanent and (or) in the temporal use.

*The dwelling-houses of superior comfort are the dwelling-houses with one of the followings criteria: either placed in the first economic-project area or built with application of individual architectural, project and structural decisions (the height of even one dwelling floor exceeds 3 meters, coefficient of relation of general area to living area of even one of the apartment, except for one-room, two and more, the general area of even one apartment accounts more than 140 square meters).

The leasing contract of lot land, concluded at its granting, including according to the results of leasing auction, is prepared by the local executive committee, that has made the decision on granting of this area, in accordance with the model form, established by the Council of Ministers of the Republic of Belarus.
In accordance with the established order, for granting of lot land the interested person addresses local executive committee at the center of location of solicited lot with the application of granting of this area.

The application contains:
  • the purpose, which lot land is solicited for;
  • law of estate on the solicitation of lot land;
  • the description of building object, including its functional purpose and reference sizes;
  • planned place of placing of lot land and its approximate area.

The application of legal entity, individuals contains the additional information of the volume of the planned investments and sources of financing the building of object (except for the cultural structures, the building of which is carried out by the religious organizations).
In case if the lot land is solicited for state needs, the application contains the grounds (one or few), stipulated by the point of tenth of this Statute, the copies of documents (or extracts from them) that confirm these grounds are enclosed to the application.
Copies of charter without notarized attestation, the certificates of the state registration of legal entity, document with pointing of its bank properties, and copy of certificate of the state registration of individual, and copy of documents, contained the identification information about citizen*, solicited the lot land are enclosed to the application.

* the identification information about citizen is his last name, name, patronymic, number, month, year of birth, personal or other identification number, citizenship, address of place of residence.

The local executive committee examines the application during three working days from the day of receipt of application of the interested person. In case of absence of grounds for refusal in granting of lot land, conditioned by town-planning regulations, by nature conservation (taking into account the requirements on the observance of the conduct of economic activity established in accordance with the legislation within the bounds of water protection areas and coastal strip of water objects, forests with particular regime of forest utilization and especially protected natural territories) and other requirements of legislation the local executive committee charges the organization of land management with preparation of land-cadastre documentation, that is necessary for work of commission, and simultaneously informs the interested person about the results of consideration of his application. The local executive committee encloses the application of statement interested person and documents, given by them in accordance with the point of fourteenth of this Statute to the commission. The commission of local executive committee, sent with violations of requirements of this point, returns by the organization of land management at the day of its consideration for its entering not later than one working day in accordance with the established requirements.
During the decision-making process about the refusal to the interested person in granting of lot land, the local executive committee informs about it the declarant with pointing of grounds for refusal, corresponding to the legislation during three working days after acceptance of such decision.
The decision about refusal in granting of lot land can be appealed in higher executive committee and (or) in court.

4. Acquisition of property rights on land according to the results of auctions

For the purposes of granting of lot lands in Minsk auctions on the right of entering conclusion of the leasing contracts of lot lands, auctions with the terms for the right of planning and building of capital structures (buildings, constructions) and auctions on the sale of lot lands in a private property are organized.
Auctions on the right of conclusion of the leasing contracts of lot lands (hereinafter referred to as auctions on the right of lease) are organized and conducted in regard to lot lands, where the objects of the real estate, subject to demolition, are absent.
Auctions with terms for the right of planning and building of capital structures (buildings, constructions) (hereinafter referred to as auctions with terms) are organized and conducted in regard to lot lands, where the objects of the real estate, subject to demolition, are located. The main condition of this type of auctions is the terms of demolition (carrying over) of the objects of the real estate located on areas, and also indemnification of losses by previous land user, caused by the withdrawal of lot lands;
Auctions on the sale of lot lands in private property (hereinafter referred to as auction of sale) are organized and conducted in the cases stipulated by the legislative acts

In accordance with the decision of Minsk executive committee from 18.04.2008 "On certain questions of organization and conduction of auctions in regard to lot lands in Minsk by state organization, authorized to conduction of auctions in Minsk on the right of lease, auctions with terms and auctions on the sale is determined by UE "Minsk center of the real estate" (hereinafter referred to as the organizer of auctions), located in: 220030, the Republic of Belarus, Minsk, K. Marksa street, 39, tel.: +375 17 05-62, (227-48-36), (226-16-72), (www.mgcn.by)

The preparation and organization of auctions of lease and auctions with terms the organizer of auctions carries out in regard to lot lands, on which Minsk executive committee made the decision of Minsk executive committee from 20.06.2007 1481 "On affirmation of lists of lot lands for granting in accordance with established procedure according to the results of auction".
A month before the conduction of auctions in republican and local mass medias (newspapers "Zvyazda", "Minskii courier" and other periodicals) the notification with pointing of complete information about objects of auctions, date of their conduction, list of necessary documents for participation and terms of their reception are published. Detailed information about lot lands, put up for auctions, order of participating in auctions, their terms, initial offering prices of the articles of auctions can be given in case of appealing to indicated address, telephones, or using of information, placed on the official site of the organizer of auctions (www.mgcn.by).
The order of conduction of auctions on the sale and their organizer is presently determined by the Decision of the Council of Ministers of the Republic from 26.03.2008 462 "On some measures on the realization of the Decree of the President of the Republic of Belarus from December, 27, 2007 667".