[BUYING AND SELLING REAL ESTATE IN RUSSIA]
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KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER RUSSIAN LAW I. Types of real estate
− state ownership comprising
▪ federal ownership (real estate owned by the Russian Federation); ▪ ownership of constituent entities of the Russian Federation; − municipal ownership; − non-delimited public ownership (i.e., public ownership, which is not explicitly attributed to the ownership of certain particular public owners – federal or regional). Land plots in state or municipal ownership can be sold only by tender held in the form of auction or without tender in certain cases provided by the law (generally when land plots provided for non-commercial, personal, agricultural purposes). If title to the public non-delimited land plot is not registered, it does not prevent disposal of such land plot. Generally, such land plots are disposed by local authorities, executive authorities of constituent entities of the Russian Federation or federal executive authorities in cases provided for in the law. 2. Private ownership: − individual ownership; − co-ownership (simultaneous enjoyment of right of ownership to the same real estate item by several persons): ▪ joint ownership – co-owners enjoy right of ownership to the real estate item in whole, without the opportunity to separate the co- owner’s shares; ▪ shared ownership – each co-owner has precise separable share of ownership to the real property.
land plots;
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• buildings, facilities, and other objects closely connected with land (i.e., objects that cannot be removed without detriment to their designation); • constructions or developments under construction; • objects qualified as real estate by operation of law (registrable aircraft, ships, inland-waterways vessels);
residential premises;
and
non-residential
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• car parking space. Land plots and buildings and constructions constitute two separate types of real estate objects, according to Russian law. In practice, this means that a land plot and a building located on it represent two separate real estate items and can be owned by different parties and even on different titles (for example, right of ownership to the building and right of lease to the underlying land plot owned by another party). State registration of title to buildings, constructions on the one hand and underlying land plots on the other hand, is carried out separately, as well. However, there is a principle of “unanimous destiny of land plot and objects closely connected to it” commonly known in Russian law according to which the building inseparably follows the underlying land plot (see for more details section VII). II. Right of ownership to real estate (title to real estate) There are the following types of real estate ownership: 1. Public ownership:
ILN Real Estate Group – Buying and Selling Real Estate Series
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