About the risks of owning property with unregistered rights
Federal service of state registration, cadaster and cartpgraphy reminds about the risks of owning real estate with unregistered rights
State registration of rights to real estate is a legal act of recognition and confirmation of the occurrence, change, transfer, termination of a certain person's right to real estate or restriction of such a right, which is carried out by an authorized state body by making an entry about the right in the Unified State Register of Real Estate (USRRE).
Obligatory state registration shall be subject to the ownership, economic management, operational management rights arising in relation to capital construction objects, the documents of title for which are executed after January 31, 1998 (after the entry into force of the Federal Law of July 21, 1997 No. 122-FZ “On State Registration of Rights to real estate and transactions with it ”).
Rights arising prior to the indicated date are recognized as legally valid and registered at the request of their respective owners (previously arisen rights).
State registration of previously arisen rights is mandatory when making a transaction with real estate, as well as in state registration of transfer of law, restriction of law.
In accordance with Art. 25, 26 of the Land Code of the Russian Federation, rights to land plots arise on the grounds established by civil law, federal laws and are certified by documents in the manner prescribed by the Federal Law "On State Registration of Real Estate".
Important:
When owning or using a land plot, in order not to become violators, it is recommended that citizens and legal entities to check the availability of documents confirming the right to own or use a land plot (including those previously issued), and it is necessary to take measures to register them with the established procedure and registration of real estate located on them (i.e. legalize their right to use the site and the capital construction object on the basis of available documents).
Check for violations:
In order to be sure that you are not occupied by someone else’s land, you need to make sure that the land is used within the boundaries, information about which is available in the USRRE or title documents. If the boundaries of the site are not set in accordance with the requirements of the law, it is recommended to conduct a land survey of the site and determine the boundaries, including on the ground. To do this, you need to contact the cadastral engineer, a register of which is available on the official website of Rosreestr.
To be sure of the correct use of the land, you can request an extract from the Unified State Register of Real Estate by contacting the office of the multifunctional center. This extract will reflect the area of the site used and information about its land surveying.
Permitted use of land:
In accordance with Art. 42 of the Land Code of the Russian Federation, owners and users of land are required to use them in accordance with their intended purpose in ways that should not harm the environment, including land as a natural object. This means that any owner of the land should use it in accordance with the assigned category of land, type of permitted use and the territorial zone established by the Rules for land use and development of a particular territory.
For example, if a land plot with the category “land of settlements” and the type of permitted use “for an individual house” is used to place an industrial facility, this fact is a violation of land law.
Information on the category of land and the type of its permitted use are also reflected in the above extract from the USRRE. Information on the territorial zone in which the plot is located can be obtained by studying the relevant resolution of the local government, which approved the Rules for land use and development of a particular territory.
Why you need to register real estate rights in the USRRE:
The emergence, change, termination of rights to real estate occurs only from the moment of making the corresponding entry in the USRRE, unless otherwise provided by law (in particular for previously arising rights). From this moment on, the new owner can exercise the powers of possession, use, disposal of real estate.
Making a record of the right in the USRRE allows the right holder of the property to become one in front of all third parties who may claim his property, which also protects his rights from unscrupulous persons.
The principle of openness of USRRE information allows any interested person, state authority, local government to receive information about who is the owner, other owner of any real estate object, provided that the USRRE has information about the corresponding real estate object. This information is used, in particular, by potential purchasers of real estate to make sure that it is disposed of by its rightful owner, state authorities and local self-government when deciding on the provision of a land plot to the owner of the capital construction facility located on it, by the courts when considering disputes about property rights, notaries at the opening of the inheritance and determination of the estate, as well as in many other cases.
The USRRE on registered real estate rights minimizes the risks of fraudulent activities with property.
The existence in the USRRE of records of rights to immovable property makes it possible to reduce the list of documents submitted to other bodies of state power or local self-government when applying for the provision of state or municipal services, since in this case the necessary information about the rights will be requested by these bodies independently in the manner of interdepartmental interaction without participation of the applicant and his expenses for obtaining certificates from various authorities.
The absence in the USRRE of information on rights in relation to capital construction objects within 5 years from the date of assignment of cadastral numbers by them entails the obligation of the registration authority to send information about such objects to local authorities, which in turn can register these objects as ownerless, and subsequently recognize the rights to them. If the property was put on cadastral registration before January 1, 2017 and the rights to it were not registered, the USRRE information about such an object is “temporary”. If the rights to such objects are not registered before March 1, 2022, information about them will be excluded from the USR. This means that for the purpose of registering property rights, the copyright holder will have to contact the cadastral engineer for registration, a land plan, a technical plan, apply with an application for registering the object with cadastral registration and for registering rights with the registration authority.
The tax on land plots and capital construction projects is calculated on the basis of information on registered rights in the USRRE provided by the Federal service of state registration, cadaster and cartography to the tax service. The absence of rights registered in the USRRE entails not informing the tax service about taxable objects. From January 1, 2017, a fine will be levied for the taxpayer not having information about the taxpayer’s ownership of real estate for which he has not received tax notifications before. So, in accordance with paragraph 2.1 of Article 23 of the Tax Code of the Russian Federation, if a taxpayer has never received tax notifications, he must independently inform the tax authorities about the availability of an apartment, house or land (or other property) by December 31 of the year following expired period. Otherwise (paragraph 3 of Article 129.1 of the Tax Code of the Russian Federation) the taxpayer faces a fine for untimely notification to the inspection or failure to notify in the amount of 20 percent of the unpaid tax amount for each object.