Real estate and construction

Amendments to the Russian Civil Code on immovable things have come into force

Pepeliaev Group advises that, on 1 September 2022, Federal Law No. 430-FZ “On amending Part I of the Civil Code of the Russian Federation” dated 21 December 2021 (“Law No. 430-FZ”) came into force with respect to the legal regulation of immovable things.

The risks are increasing for stakeholders that are investors

Pepeliaev Group advises that in August 2022 the Russian Supreme Court issued a Ruling confirming the court practice of the lower courts in the area of shared construction that investors who are individuals are deprived of the benefits in the event of the developers’ bankruptcy when residential premises are acquired for investment purposes.

Risks resulting from an understated price for real estate In August 2022 the Russian Supreme Court adopted a Ruling whereby the understatement of a price for a land plot evidences that a party to a civil law transaction is directly or indirectly aware that the purpose of the transaction is unlawful.

Personal data of individuals will be removed from extracts regarding real estate Pepeliaev Group advises that, on 14 July 2022 a federal law was signed according to which information regarding individuals who own real estate will be provided to third parties only with the consent of the owner.

The State Duma has adopted a law that grants the lessor a number of additional rights in a situation when the lessee is a commercial and/or public catering organisation and is connected with a hostile state/territory On 28 June 2022 the Russian State Duma adopted a Law whereby lessors, under certain conditions, are granted the right to charge a larger rent from lessees that are connected with hostile states/territories and the right to withdraw from lease agreement with such lessees unilaterally.

Draft the administrative burden on developers has been decreased The Russian Government has taken steps to streamline administrative procedures in the construction field.

Measures to support those who rent property of the city of Moscow Pepeliaev Group advises that the Government of Moscow has adopted  a set of measures to provide economic support to those who rent land plots and non-residential premises.

An exhaustive list of documents, data, materials and approvals in construction is being prepared for adoption Pepeliaev Group advises that the Russian Ministry of Construction, Housing and Utilities has drafted a Resolution of the Russian Government to approve an exhaustive list of documents, data, materials and approvals for which Russian regulations provide and which are necessary for the implementation of a construction project.

On 1 september 2021 the new procedure came into effect for obtaining technical specifications for the purposes of design and construction Pepeliaev Group advises that Federal Law No. 276-FZ (“Law 276-FZ”) “On amending the Russian Town-planning Code and certain items of Russian legislation” was signed and published on 1 July 2021. This law amends the procedure for obtaining technical specifications (the “TS”) for the purposes of connecting to water supply, water disposal, heat supply and natural gas supply systems. 

Counterparty’s insolvency risks for creditors of state and municipal unitary enterprises Pepeliaev Group advises of specific aspects of how claims of creditors of state enterprises are satisfied at the expense of the debtor’s rights to a land plot.

Courts clarify administrative liability for a breach of requirements for permitted use of land plots Pepeliaev Group advises of the case law that, in furtherance of the resolutions adopted by the Constitutional Court, clarifies the conditions of administrative liability for the use of a land plot in breach of the type of permitted use.

A failure to enter into the Unified State Register of Real Estate information about a selected secondary type of permitted use of a land plot does not entail liability Pepeliaev Group advises that the Russian Constitutional Court has is-sued Resolution No. 42-P dated 16 October 2020 according to which article 8.8(1) of the Russian Code of Administrative Offences, which establishes liability for a land plot being used other than for its intended purpose, con-tradicts the Russian Constitution.