The Law of the land market: the state set their sights on the concentration

10.02.2011 17:35
Articles about real estate | The Law of the land market: the state set their sights on the concentration The State Agency of Land Resources has prepared a bill on land market, the adoption of which is one of the main conditions for lifting the moratorium on the sale of agricultural land.

Document to be presented to parliament by mid-February in order to take until early April. To make the law work, the Cabinet must issue two rulings - the establishment of specialized state agencies and to limit marginal areas of agricultural land to be acquired physical persons. It is expected that the basic law for the abolition of the moratorium - "On State Land Cadastre, already registered in the parliament, will for the first half, wrote UNIAN.

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Among the preparations to the turnover of agricultural land market work - preparation of bills within a year of consolidation and zoning of agricultural land, the completion of an inventory of land, as well as a doubling of the regulatory monetary valuation of lands.

Land remains - only for the State and natural persons

In Ukraine, the land reform areas was launched 20 years ago. And even though officials did not deny the existence today of "gray market" of agricultural lands, where the most attractive holdings in some way already to get their hands, but the distribution of the remaining territories are planning to mainly between physical persons and the state.

Thus, one of the provisions of the bill provides that the buyer in this market will be limited to citizens of Ukraine. And Goszemagentstvo decided to delete from the list of persons entitled to acquire land, not only foreign nationals, states and companies, but also of domestic legal entities to avoid falling into foreign land ownership.

"We took the" legal person ", because the founding legal person shall be nationals of Ukraine and foreign citizens. They may be a legal entity to purchase or buy to pass the corporate rights of foreign nationals, "- explained Deputy Chief Nicholas Goszemagentstva Kalyuzhny.

According to estimates of lawyers, "Ukrainian legal entities" from the law were seized in the last turn, since You can track the availability of opportunities for companies to purchase agricultural land elsewhere in the document.

"The original text of the bill spells out the fact that the Ukrainian legal entities may have the right to own agricultural land," - said the lawyer law firm Hasin and Drozdovskii "Lubomir Drozdovskii.

With the adoption of the law to foreign investors who wish to invest in our agriculture will have to settle for leasing land.

"We understand that it's bad for the economy, but in another way, we can not control that land is not drifted to the Arab sheiks" - Deputy Goszemagentstva laugh off.

Nevertheless, he does not see from domestic farmers a great desire to acquire agricultural land in the property because the rental costs them in 2-3% of the normative monetary value of land (about 360 USD. Per hectare). And the foreigners, the more willing to take land on lease.

"To date, no less than half a million hectares of land we want to hire, since Arab Emirates, Syria, Libya", - said N. Kalyuzhny.

According to the document, the land value will determine the market with the help of money expert assessment, but it can not be lower than the normative. By the way, before the year is planned to increase the estimated rate per hectare of agricultural land by half - from the current 10-12 to 20-24 ths. In Goszemagentstve already calculated that under the current regulatory assessment of investments in one hectare will be paid back over 20 years. Nevertheless, N. Kalyuzhny admits that, immediately after the lifting of the moratorium on the sale will be put up to 1 million units (from 6,8 million), subsequently the proposal will be reduced.

"Orphan" lands will specialized agency

According to the authors of the bill, one of the major players in the market of agricultural land to the state represented by a specialized institution - the Fund's agricultural land, he concentration and will land in public ownership. According to preliminary data, institutions will fall into submission, or the Cabinet or the Ministry of Agricultural Policy and Food.

To start the Foundation planned to convert agricultural land outside the settlements, which Ukraine has 3 million hectares. "This is - lands that are not available for ownership or use, they are now in the lease or not used", - explained in the department.

In Goszemagentstve see specialized agency as full-fledged player in the land market from the state, which will not only rent collected by the Foundation of the earth, but also to replenish stocks, buying unclaimed shares from the owners who went abroad, or who are no longer alive.

"We think that another 2 million hectares will soon be added to the 3 million through the land that we call the unclaimed shares, which certificates were issued to people during this time retired or died, or left and never returned to pick up documents on the ground ", - said N. Kalyuzhny. He clarified that such land will not nationalize, and redeem. In this case, the bill provided by specialized agencies of the priority right to purchase agricultural land, along with the users and the nearest neighbors offered for sale by the unit.

"In order for a person to sell the land share, he makes the announcement in the newspaper or sending letters to the State in the person of the Fund, the district administrations, the neighbors, that is, persons who have the first right to purchase the land. Throughout the month of each participant willing or not willing to buy the site ... If you wish to buy the land two organizations, to determine whom to sell, will be the owner. No one is forced to make "- explained Deputy Goszemagentstva.

By speculators strike duty

Sale of land provides not only at auctions, but also through competitions, despite the fact that the Land Code does not mention this form of implementation units.

"We first entered the competition. We believe that it is necessary, because for the contest you can enter rules for the internal or external investor ", - said N. Kalyuzhny.

Lawyers explain that unlike auctions of competitions is that the auction has meaning only the price of land, and the competition for buyers may be exhibited certain qualification requirements, including with respect to land-use. For example, with a deficit of buckwheat State leases land at a discounted price, but provided for several years to grow just a product.

In L. Drozdovsky for individuals holding contests does not make sense, because "they would not be agricultural producers in principle." Physical persons can function as private businesses or farms.

Considering that the investor in this case will serve only natural persons, apparently, the state is counting on the emergence of new forms of management, for example, agricultural cooperatives, in which farmers will be able to arrange the purchase of land for himself, to jointly develop plots.

To prevent the concentration of large areas of land in the same hands, the bill provides for restrictions. Specific figures will be determined by separate resolution of the Cabinet, and today the maximum size of the area of agricultural land varies from 2-3 ha priori land in the south and east of the country and 100 hectares in Polesie and Transcarpathia. Control the distribution of allotments will be using the Land Registry.

And with the speculators, the Office proposes to fight UAH - through increasing the rates of state taxes on resale of the shares within five years.

"If a person bought this year, 100 hectares of land and 3 months later wants to sell it at inflated prices, we will immediately establish a fee of 100% of the normative monetary estimates for the second year - 90%, a third - 70% in the fourth - 60%. Thus, we will try to fight off the hands of those who want to speculate on the sale of agricultural land ", - said N. Kalyuzhny.

Another innovation is waiting for wanting to sell their land share - agrochemical passport. Lawyers suggest that this service will be paid: every owner of the land before its sale, will have to pay any company that will issue passports, a certain amount.

"Agrochemical passport - another corrupt element that opens the possibility for abuse of officials. It does not protect from the transfer of ownership of agricultural land to other unscrupulous users of the land, it just creates some obstacles ", - said A. Drozdovskii.

Major questions remain unanswered

Analyzing innovation, lawyers have called the bill "raw" and believe that in such a parliament will not accept it because, if we take into account the right to acquire agricultural land only to physical persons, the document need to rewrite.

In addition, the law lacks mechanisms to control how will protect the rights of natural persons - owners of the land, given that today the agricultural land owned by persons and legal entities.

L. Drozdovskii believes that the current wording of the bill does not answer the main question: what happens after the lifting of the moratorium and who will be the owner of the land.

According to farmers, a moratorium should be removed, but the proposed version of the bill will only worsen the situation. "On the one hand, a ban on civil-legal agreements for the disposal of land will be lifted, on the other - there are no mechanisms that would be fair to control the market by the state and protect the peasant from obezzemelivaniya" - the chairman of the board of directors Agrofirma Kornatsky "Arkady Kornatsky.

According to him, from the document you want to exclude the mandatory notarization of transactions on the land lease, because it duplicates the registration of contracts in government agencies. However, he considers it necessary to equate to the purchase and sale of land schemes, which will cover the purchase and sale for a penny, "such as contracts of donation, exchange, transfer of land to the statutory funds of economic entities. "The farmer is completely defenseless against a buyer" - he stressed.

As noted by A. Kornatsky, safeguards against speculation in the land market is inefficient and there are many ways to circumvent them. He also doubted that the State Fund of farmland for the concentration of the units will not use administrative resources.

"The Foundation needs to do some pick up and who should pay. And pick up will be mostly with the use of administrative resources. Because the state has no funds for land acquisition ", - said A. Kornatsky.

However, he stressed that the ban Ukrainian to legal entities to buy agricultural land will affect income in the budget because the company could pay for the plots much higher price than private individuals.
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