Legal advice and step-by-step instructions: how to buy commercial land

Prices for lawyer services in land disputes

A plot of land for commercial development is required for the construction of office buildings, shopping centers, shops, sports complexes and a number of social facilities.

Modern megacities have a huge number of business centers, restaurants, sports facilities and production centers. All this together is called commercial objects. They are located on so-called commercial development sites . What it is and what is the difference between commercial plots and ordinary land will be discussed in our article.

Definition of the concept

The Land Code of the Russian Federation does not provide the concept of “commercial land” as such. Commercial real estate in general includes buildings and structures, as well as areas of territory located under them, used for activities related to generating profit on an ongoing basis.

This is a collection of office buildings, industrial facilities, hotels, shopping centers, shops, car services, warehouses and garages.

IMPORTANT! To avoid possible losses and even bankruptcy, before purchasing such land, potential buyers should carefully calculate investments, the expected start of receiving income and the payback period for all costs.

What can be built on such plots?

Commercial land refers to income-generating land plots on which it is permitted to build:

  • Gas station.
  • Motor vehicle service stations.
  • Car washes.
  • Shopping centers.
  • Office buildings.
  • Industrial buildings.
  • Sports complexes.

Features of transferring land for commercial development

The transfer of land from one category to another is fixed in Art. 8 of the Land Code of the Russian Federation. In our case, we are talking about the transfer of land for industrial and other needs.

It should be noted that the law may impose restrictions on transfers. This is one of the first problematic issues encountered during commercial development. Difficulties may arise not only with government agencies, but also with Rospotrebnadzor, Vodokanal, environmental services, etc.

The transfer of land for commercial development most often affects individual housing construction sites. In this case, entrepreneurs need to agree with land owners on the transfer of plots for the construction of commercial facilities, for example, within the city limits or at the entrances to a populated area.

Legislative framework

The process of dealing with commercial real estate is regulated by three codes of the Russian Federation:

  • Land.
  • Urban planning.
  • Civilian.

By Order of the Ministry of Economic Development of Russia dated September 1, 2014 No. 540, a Classifier of types of permitted use of land plots was approved, which examines in detail land plots in the light of their possible exploitation.

The right of ownership after the acquisition of land is covered by the Federal Law “On State Registration of Real Estate” dated July 13, 2015 N 218-FZ.

If after the purchase there is a need to transfer a plot of land to another category, this procedure will be regulated by Article 8 of the Land Code and Federal Law No. 172-FZ of December 21, 2004.

Is it possible to organize a business on an individual housing construction site?

Many people decide to engage in commercial activities practically without leaving home.
Using the individual housing construction plot for business seems promising. But you shouldn’t rush to build a store or cafe on your territory. In fact, it will not be possible to use a plot intended for individual housing construction to conduct commercial activities . To solve this problem, you will have to officially allocate part of the site for commercial activities or completely change the purpose of the territory. But in the latter case, it will be impossible to live on such land.

Thus, there are many factors to consider when purchasing a commercial plot. How quickly your business will start operating depends on how thoroughly you have worked through all the points to ensure compliance with the business plan.

The video story will tell you how to register commercial real estate if the land is leased

How to buy and sell commercial land: main features

To complete a purchase and sale transaction of a commercial plot, the owner and buyer draw up an agreement , during the preparation of which they cannot change the mode of use of the land. Therefore, before purchasing commercial land, it is important to accurately determine its possible intended use.

It may happen that a legal entity acquires a plot of industrial land with the aim of building a gas station on it, but only warehouses or bases are allowed to be built on the site, and in this case it will take a long time to change this situation.

Shop or shopping center

The procedure if you are going to buy land for a trade enterprise is as follows:

  1. To select a site possible for the construction of a store, you should contact the city architectural supervision authorities and choose the most acceptable one.
  2. The information system of this body contains all options for the construction of shopping centers.
  3. Next, the buyer fills out an application to the city administration for preliminary approval of the location of future construction.
  4. The decision is made on the basis of information from the state real estate cadastre with the condition that urban planning and environmental standards will be preserved.

Car service

Finding a suitable site is quite difficult, since it must be located in an area of ​​easy accessibility, have convenient access and at the same time not have a harmful impact on surrounding objects.

Car wash

It is not easy to acquire land for the construction of a car wash from the state. To do this, it is better to immediately prepare a construction project, a design sketch, and a landscaping plan. It will be easier when purchasing a plot on the secondary market from the owner. Here you should pay attention to whether the allotment is suitable for the purpose of use: the design of the car wash is easy to assemble, but under each post it is necessary to organize a sand catcher and a sump for waste water.

gas station

The difficulty of acquiring land for the construction of a gas station is that it must be industrial land, which is most often sold in plots of several hectares. Finding a suitable small site is not so easy.

Obtaining permission for commercial development of a site

Before receiving a plot of land for commercial needs, an entrepreneur submits a petition requesting the intended purpose of the land. However, planning permission is required.

During surveying and other land management work, you need to make sure that the area being built includes:

  1. Communication nodes (transformer booths, electricity storage facilities, monitoring the level of electricity supply, etc.).
  2. Parts of storm drainage systems to protect the area from flooding.
  3. Elements of the fire protection system (access roads, free entrances/exits, land for storing fire extinguishers).
  4. Area for travel and passage.

In addition, it is necessary to take into account the norms of urban planning documentation. In particular, we are talking about the availability of free space from the building to the border of the land plot.

What does the cost depend on?

The value of commercial real estate is influenced by many factors. It is of great importance in what region the object is located, in what area of ​​the settlement, what its permitted intended use is, and the presence/absence of communications. The cadastral value of the land is determined by an independent appraiser (about why to determine the cadastral value and whether it is possible to sell a plot below it is written here).

How is the commercial development site used?

Proper use of land for commercial development is the basic principle on which commercial activity is based. Targeted exploitation increases profits, while violations can lead to bankruptcy.

Often, land for commercial construction is provided under a lease agreement. The subjects of the agreement are the lessor and the entrepreneur (commercial company). When entering into a lease agreement, it is important to adhere to construction deadlines. Such agreements allow you to include a clause on the subsequent purchase of the site, for example, if the developer plans to expand the territory.

Also, we must not forget about taxation. The cost is calculated based on the cadastral value of the land. Moreover, when transferring a plot from an agricultural category to an industrial one, the cadastral value will need to be revised.

Finally, the use of land means endless coordination of sanitary, fire and environmental standards with special authorities. Not all entrepreneurs have smart lawyers on their staff, which imposes certain difficulties when preparing documents. It is important to understand that the land plot should not be idle - the sooner construction begins, the sooner the profit will flow. Consultation with a land lawyer is essential!

Procedure for purchasing and selling land for development

Tips for choosing a plot for the construction of real estate for trade

The attractiveness of commercial real estate is influenced by factors such as:

  • transport accessibility of the site;
  • size of territory: smaller plots are more popular;
  • availability of communications: land to which electricity, pipelines, and communication cables are to be supplied is less attractive, as it requires a significant investment of money and time.

It is necessary to thoroughly study the issues of possible legal and administrative burdens, accessibility and cost if it is necessary to connect to energy and utility networks.

ATTENTION! If a commercial project involves major construction, it is important to carefully study the soil, rock layout and aquifers in advance.

How to buy from the state?

If the land plot is not privately owned, then it can be purchased from the state or municipality only through official bidding - an auction (is it possible to buy land from the state without bidding?).

In order for a land plot to be the object of purchase and sale, it must have clearly established boundaries, be registered in the cadastral register, be determined by category and type of permitted use, and not have any prohibitions on alienation.

Auction initiation

The initiator of the auction can be the executive body of state power or local government , which is in charge of the land, or a private or legal entity interested in purchasing the property. If the initiator is a state or municipality, the buyer will only be required to express a desire to participate in the auction by submitting an application in a timely manner.

If the bidding initiator is an entrepreneur

If the bidding initiator is a potential buyer, he actually takes responsibility for organizing the bidding. To do this he needs:

  1. Obtain a map of the location of the site on the ground with the help of the state cadastre service.
  2. Register the topographical diagram of the land with the control and supervisory authorities.
  3. Register the plot of land with the cadastral register.
  4. Initiate land registration with the municipality or state.

Only after these steps is it possible to officially contact local authorities with an application to organize a land auction with the provision of cadastral registration details. Within two months, a decision is made to carry out the auction, if there are all grounds for this, and the organizer is determined. This may be an executive body or an organization acting on its behalf on the basis of a contract.

What is needed for an auction?

Plots of land for commercial development are sold only through an electronic auction. To become a participant, you must first make a deposit and provide a package of documents.

IMPORTANT! If you want to purchase state real estate, it would be useful to be vigilant, since illiquid lands are often put up for auction, which will require large infusions of cash and time resources.

How is an application addressed to the head of administration drawn up?

The application form for participation in electronic trading is approved by the organizer. The following information should be reflected there:

  1. full name of the legal entity or full name and passport details of the individual submitting the application;
  2. when applying from a legal entity - full name and position of the representative;
  3. details of the charter or power of attorney;
  4. purpose of the area of ​​interest;
  5. the applicant’s address and details for returning the deposit;
  6. participant's signature.

The application must also reflect the bidder's commitment to comply with the terms and conditions of the auction. An authorized person of the auction organizer records the time and number of the application. One applicant has the right to submit only one application for participation in the auction of a specific land plot.

List of other documents

In addition to the application, the potential buyer must provide:

  • passport of a citizen of the Russian Federation for an individual;
  • constituent documents and order for the appointment of a manager - for an enterprise;
  • certificate of registration with the tax authority and a general passport - for an individual entrepreneur.

REFERENCE! The deadline for submitting a complete package of papers is 5 days before the electronic auction.

Making a deposit

To participate in electronic trading, a potential buyer, along with a package of papers, must provide a receipt for the deposit in accordance with the lot documentation.

Depending on the type of object, it can be up to 50% of the initial cost of the lot and, if you win the auction, will be taken into account as payment. If the participant does not win the auction, the deposit will be returned.

Step by step procedure

All information about the auction procedure is reflected on the website of its organizer. The algorithm looks like this:

  1. the municipality sets the initial cost of the property;
  2. auction participants offer their options with the approved “step”;
  3. the winner is the participant who offers the highest price;
  4. After the protocol is completed, it is published on the official page of the authority.

Within three days, the organizer is obliged to return the deposits to the remaining bidders.

When are auctions declared invalid?

The auction will be considered invalid if:

  • less than two bids were received;
  • after the initial price of the plot was announced, no requests were received from auction participants to increase the price;
  • the winner avoided signing the protocol on the results of the auction or concluding a purchase and sale agreement.

Conclusion of an agreement with the winner

The winning bidder, within ten days after drawing up the protocol of the auction, receives three copies of the purchase and sale agreement for the plot at the price he proposed. The document must contain information:

  1. about the seller (authorized body) and the buyer;
  2. complete information on the plot: location of the object, area, cadastral number, type of permitted use;
  3. price and payment procedure.

Three copies of the agreement (one for each) are sent to the seller, the buyer and Rosreestr.

Final settlement of the parties

The deposit made by the winner of the auction is counted towards payment for the acquired state land plot. The remaining amount is transferred by the buyer in accordance with the procedure established by the purchase and sale agreement for the property.

Registration of property rights

In order to register the winner of the electronic auction as the full owner of the land plot, it is necessary to obtain a corresponding resolution from the head of the authorized government body and submit it to Rosreestr with the following package of documents:

  1. statement;
  2. passport;
  3. contract of sale;
  4. extract from the cadastral plan;
  5. receipt of payment of state duty.

We wrote about how to formalize a land purchase and sale transaction through Rosreestr and the MFC here.

Deal with the owner

Owners of commercial land can be both legal entities and private individuals.

What documents must each party provide?

The seller of the land plot must provide the following documents:

  1. a fresh (no later than 10 days) extract from the Unified State Register of Real Estate to confirm ownership;
  2. passport data for reconciliation with the information in the statement;
  3. statutory documents for sale by a legal entity;
  4. cadastral and boundary plans;
  5. if there are structures on the site, there must be an extract from Rosreestr for them;
  6. when purchasing from a married individual, there must be a notarized consent of the spouse to sell;
  7. a certificate from the Federal Tax Service of the Russian Federation stating that the seller has no property tax debts to the state.

The buyer provides passport or statutory data to formalize the contract and submits the necessary documents to register ownership of the land plot.

Algorithm of actions

An independent appraiser is invited to determine the market price of the plot, taking into account the total income from the property.

ATTENTION! If there is an advance payment in the form of an advance payment or a deposit, it must be formalized in writing in the form of a receipt or a preliminary purchase and sale agreement.

Before concluding a contract, it would be a good idea to check the area of ​​the land plot by an independent expert for compliance with the figures specified in the documents, as well as carefully study all the papers provided by the seller. We wrote about what to pay attention to and what you need to check before making a transaction in a separate article.

The contract for the sale and purchase of commercial land includes:

  1. Full name of the document and the property being purchased.
  2. Date and place of compilation.
  3. Complete information about the buyer and seller.
  4. Address of the transaction object.
  5. Area, cadastral number and type of permitted use of the site.
  6. All rights and obligations of the parties.
    For the seller, this is: the obligation to prepare the plot for sale and provide all the required documents for registering the property.

    For the buyer: obligation to pay the full cost of the object, sign the acceptance certificate.

  7. Amount, procedure and period of settlement between the parties.
  8. Time frame for handing over the plot.

To prevent possible disputes between the parties in the future, all clauses of the contract should be described in as much detail as possible . The services of a lawyer who will check the correctness of the contract will not be superfluous. It is drawn up in three copies: one for the parties and the third for Rosreestr.

An application to register the transfer of ownership to the buyer is filled out and submitted directly to the Rosreestr branch and the state fee is paid. The parties receive a notification of registration by e-mail or mobile phone number. State registration is carried out within seven working days from the date of receipt of documents by Rosreestr.

The new owner appears at Rosreestr within the specified period and receives an extract, after which the parties make final mutual settlements, if this has not been done earlier.

IMPORTANT! The most optimal payment option for the buyer is payment through a safe deposit box. In order for the seller to receive funds, he must provide the bank with a registered purchase and sale contract - confirmation that the transaction has been completed and ownership has passed to the buyer.

Legal assistance

Valuation of suburban real estate is an important step towards the successful completion of the purchase of land for commercial needs. An inexperienced businessman is lurked by scammers and resellers. Only a qualified lawyer on land issues can help you understand a difficult situation.

Contacting an expert offers many benefits:

  1. Search for the most optimal option for a business project.
  2. Preparation of documents for obtaining land, assistance with registration of transfer of a plot to another category.
  3. Support of transactions for the purchase and sale or lease of land for development.
  4. Challenging fictitious contracts if the land plot for construction has violations.
  5. Analysis of current legislation.
  6. Assistance with obtaining construction permits.

The lawyer is well acquainted with urban planning documentation. If desired, the specialist will select a suitable option for land for an office, sports center, social facility or laboratory enterprise in the MKAD area and within the Moscow region.

Author of the article

Dmitry Leonov

Work experience 15 years, specialization - housing, family, inheritance, land, criminal cases.

Author's rating

721

Articles written

712

about the author

Useful information on land disputes

  • Bathhouse registration
  • Division of land
  • Land plot for commercial development
  • Encumbrance of a land plot
  • Land surveying
  • Clarification of the boundaries of the site
  • Registration of ownership
  • Plots for large families
  • Purchase and sale of plots
  • Easement on a land plot
  • Re-registration of a plot of land to a relative
  • Purchase of land
  • Land purchase and sale agreement
  • Ownership
  • Allocation of land from common shared ownership
  • Land lease agreement
  • Formation of land plots
  • Free use of land
  • Site development coefficient
  • Categories of land plots and types of permitted use
  • Removing the boundaries of the land plot
  • The right to permanent, unlimited use of a land plot
  • Finding out the owner of the land plot
  • The procedure for agreeing on the location of land boundaries
  • Signs of unauthorized construction
  • Features of land mortgages
  • Redemption of land plots
  • Seizure of a land plot
  • Termination of ownership of a land plot
  • Transfer of rights to a land plot
  • Procedure for seizure of land
  • Market value of land
  • Pledge of land
  • Waiver of the right to a land plot
  • Land plot of a peasant farm
Rating
( 2 ratings, average 4.5 out of 5 )
Did you like the article? Share with friends:
For any suggestions regarding the site: [email protected]
Для любых предложений по сайту: [email protected]