Real estate and construction

Questions and answers in real estate and construction

• May the current situation be regarded as force majeure and how can parties to a lease use their opportunities in practice?
• How to ensure safety and outline the rules of the game for those involved in the real estate market and for regulators? How are the landlord and tenant held liable if any adverse incidents are identified in office premises?
• What kind of lease agreement may protect tenants in future if business processes are changed?
• Which factors will ensure sustainable business in the area of commercial real estate for investors and developers?

Conditions for deferred payments under lease agreements for real estate

Pepeliaev Group informs you about the procedure and conditions for the granting of deferred payments of rent under lease agreements of real estate and in connection with the outbreak of the coronavirus infection.

The Russian Government has approved new rules for maintaining the state information system supporting town-planning activities Pepeliaev Group advises that on 25 March 2020 the Government’s Resolution came into force establishing a procedure for maintaining information systems supporting town-planning activities (abbreviated in Russian as ISOGD), which contains town-planning information, documents and materials. The Resolution also defines the rules for providing such information, documents and materials to the entities involved in town-planning activities.

Emergency measures to support the economy in the area of rental

Pepeliaev Group explains the legal consequences of state measures to support the economy for landlords and tenants in the situation of the COVID-19 outbreak 

When determining the market value of a real estate item for the purposes of establishing the cadastral value, VAT is not recorded and not separately accounted for

The Supreme Court has confirmed that it is unlawful to record and separately account for VAT within the market value when the cadastral value is challenged.

Updated regulation in the sphere of shared-equity construction of real estate Pepeliaev Group law firm advises that a number of amendments to Federal Law No. 214-FZ dated 30 December 2004 (“Law No. 214-FZ”) have come into effect regarding participation in the shared-equity construction of apartment buildings and other real estate, as have amendments to other regulatory acts.

Criteria have been approved that, when met, allow funds of the participants in shared-equity construction to be raised without escrow accounts being used Law firm Pepeliaev Group advises that on 1 May 2019, the Russian Government’s Resolution No. 480 dated 22 April 2019 comes into effect. Resolution No. 480 establishes criteria which, when met, allow a developer to raise funds from the participants in shared-equity construction without escrow accounts being used.

A law has been adopted that prohibits the provision of hotel services in residential premises of apartment buildings from 1 October 2019 On 1 October 2019 the amendments to the Russian Housing Code will come into force. These amendments have been made pursuant to Federal Law No. 59-FZ dated 15 April 2019 , which prohibits the use of residential premises in an apartment building for the provision of hotel services.

If a company is entered into a sanctions list, it is no longer obliged to disclose information Pepeliaev Group advises of the exceptions that the Russian Government has introduced with respect to the rules governing companies disclosing information regarding their business activity.

Rules for the use of land and development in Moscow have been approved Pepeliaev Group advises that the Government of Moscow has approved the Rules for the use of land and development in the city of Moscow*. Two documents underpinning city planning are currently in force in Moscow: the General Plan, and the Rules for the Use of Land and Development.

Changes in legislation concerning self-regulating organisations in the sphere of engineering surveying, design and construction Pepeliaev Group advises that starting from 1 July 2017, changes will come into effect in the Russian Town-Planning Code and other laws in terms of regulating the activities of self-regulating organisations (“SROs”) in the sphere of construction, reconstruction, major repairs (collectively referred to as “construction”), engineering surveying, and design in relation to facilities undergoing capital construction work.

Regarding the new rules for ‘freezing’ the cadastral value of real estate items Pepeliaev Group advises that Federal Law No. 401-FZ dated 30 November 2016 repeals the rule that provides for the minimum cadastral value that was set in or after 2014 to be applied for taxation purposes between 1 January 2017 and 1 January 2020.