Possession and disposal of land is relatively new institute for the Russian legislation. It was developed at the same time with the transition to the market relations and revival of the private property institute, which had been absent in the country for more than 70 years.
The current principle of determining the value of a land plot is not perfect. It creates disputes when the owner is not agree with the value of the land parcel. From 2017, contestation of the cadastral value of land, which enables the owner to reduce the cadastral value using two options - in administrative or by a court order. In the article we will consider how is the procedure of contestation of the cadastral value of the land parcel going.
The cadastral value is determined by municipal authorities on the basis of analysis of wide range of parameters that include the following:
Such an assessment is mandatory every 5 years. It is conditioned by the dynamics of development of the territories within which the land parcel is located. For the specified period many changes may occur, as an example - construction of a housing settlement, saturation of the territory around the parcel with roads, public transport and infrastructure facilities - trading enterprises, medical and educational institutions, sports and leisure facilities. Such circumstances significantly increase the value of a parcel, which was located in the open field. But there can be a reverse situation - due to circumstances, a highly valued land plot could significantly decrease in value, lose its attractiveness for a purchaser because of the construction of a railway or airport transport corridor creating a constant noise near it. It may be conditioned by the industrial enterprise emitting harmful manufacturing waste or closing the city-forming industrial facility.
Taking into account that the cadastral value determined several years ago may be inconsistent with real value of the parcel and influence the market value of the object, as ell as influence on taxation of the owner who is directly interested in proper valuation. In this case the mechanism of contestation of the cadastral value of a land parcel may be applied.
Municipal authorities are entitled to determine the cadastral value of a land parcel. They exactly conduct regular revaluation of objects and transfer the data on value of parcels to the Unified State Register of Immovable Property.To perform the large-scale planned activity, municipal authorities attract specialists of outside organizations. Available license of the license and membership in the self-regulated organization is the only criterion for admittance.
As for the rest, the assessment will depend on:
Prior to 2018, the owner who do not agree with the value assessment was obliged to submit the application to the Commission of the Federal Service for State Registration, Cadastre and Cartography requesting the revaluation. Owner was removed from direct participation in resolution of the dispute. Such situation created many complaints and resulted contestation of the cadastral value of land in court.
Currently contestation of the cadastral value of the land parcel is regulated by the Order of The Ministry of Economic Development and Trade of the Russian Federation No.263 of 04.05.2012. From now on, creation of the Commission is not based on the fact of received complaint. It is a permanent body that maintains particular territory. The body includes:
Application on contestation of the cadastral value of the land parcel shall be submitted to the Commission on the standard blank sample of which may be obtained from the secretary. When filing a commission secretary must clarify the following:
Term and procedure of filing an application;
Following the consideration of the complaint, two options can be adopted:
It should be remembered that in terms set for contestation of the cadastral value of the land parcel decisions adopted by the commission shall be published in public access on electronic resources of the administration and Department for Information Support of particular region.
There are often cases when conclusions of the commission do not satisfy the applicant, and he decides to seek justice in court. To reduce the flow of complaints, Judgement of the Supreme Court of the Russian Federation as of 30.06.2015, No. 28 established a restriction. Only two categories of applications are accepted for consideration in court:
Such procedure and restrictions are valid only in relation to legal entities, as an example, contestation of the cadastral value of the land parcel by tenants who object the assessment. In relation to individuals who are land owners, such restrictions are not applicable (Law «On assessment activities» (par.3 art. 24.18).