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Land lease agreement. What has changed?


Resolution of the Cabinet of Ministers of November 23, 2016, amended the model land lease agreement. The changes came into force on December 2, 2016. The document simplifies the structure of the model land lease agreement, makes adjustments on certain provisions of the contract due to the requirements of the Law about Land Lease.

Among the most important changes, the lawyers of the International law firm "KODEX" highlight the fact that will be the possibility of concluding a single contract for several land plots at the same time.

The section "subject of the contract" must contain the cadastral number of the land property. Amendments to the "terms of the contract" provide the establishment of minimum lease terms for some agricultural lands. "Rent" under the lease agreement must correspond to the monetary equivalent of the value of goods at market prices on the date of the rent payment. If these are the lands of state or communal property, then the price of such rent can be adjusted in case of a change in the normative monetary valuation of land, - say lawyers from International law firm "KODEX".

Concerning the simplification of the structure of the model agreement, the Resolution excluded the section "Terms and conditions for the transfer of land for lease". The provisions on an integral part of the agreement (plan of the land property, an act of determining the boundaries of the land property, etc.) were also excluded. In addition, the norms regarding the state registration of the land lease agreement were also excluded. In returns the parties will have the right of notarization of such an agreement, with the mutual consent of the parties.

As was noted by the lawyers of the International law firm "KODEX", the changes are intended to optimize the form of a model land lease agreement, and bring some of its provisions in line with the Law about Land Lease. Lawyers make sure of the fact that such changes will accelerate the process of leasing. It will also ensure the process of leasing of several land property in one contract.

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