THE STATE DUMA PASSED IN THE FIRST READING A DRAFT LAW FROM ROSREESTR AIMED AT REDUCING THE INVESTMENT AND CONSTRUCTION CYCLE
The State Duma has passed in the first reading a draft law proposing to reduce the validity period of preliminary approval for the allocation of state or municipal land plots from two years to one year. It is proposed to make changes to the Land Code of the Russian Federation.
According to the Land Code, preliminary approval for the allocation of a land plot is required if the plot is provided without a bidding process. Preliminary approval is necessary in cases where the plot boundaries have not been physically marked or if the plot is listed in the Unified State Register of Real Estate without defined boundaries. The procedure also applies when an individual or legal entity seeks a plot that is part of a larger land parcel, as well as when there are unregistered permanent structures on the plot.
Investment projects take into account expenses for their preparation, including pre-design work. Excessive administrative barriers in acquiring land rights objectively increase the overall cost of the project. This leads to a worsening investment and business climate. The draft law proposes reducing the validity period of preliminary approval from two years to one year. Within this timeframe, citizens or investors will need to conduct land surveying, contact the local administration, and finalize the relevant agreement. This agreement could involve lease, purchase, or free use of the land.
However, if a change in the permitted use or reclassification of the land plot is required as a condition for its allocation, the validity period of the preliminary approval will remain at two years.