Legal practice of the Supreme Court of the Russian Federation: the agreement of participation in shared construction of non-residential building and the certificate of acceptance of premises are the basis for registration of ownership to land plot

Dispute resolution practice of Levant & partners law firm informs about important for the legal practice of the Supreme Court of the Russian Federation (definition from the March 3, 2016 No. 307-КГ15-14692).

The armed forces of the Russian Federation considered the issue of qualification deals with the future of real estate, the application of the rules on the contract of sale of future things to equity participation agreements.

The summary of the case: entrepreneurs signed an agreement of equity participation in construction, according to which the developer was obliged to transfer them to non-residential premises in the administrative and trading centre. The land owner was the Builder.

After completion of construction non-residential premises were handed over to entrepreneurs, but to register the right ownership to the land they were denied.

The courts of first instance with reference to article 36 of the Housing code of the Russian Federation (analogy of law) satisfied the requirements of entrepreneurs and invalidated the refusal of Federal registration service in the registration law. The appeal upheld the first instance decision.

The cassation has cancelled the judicial acts and refused the claim, stating that shareholders cannot acquire the right of ownership to the land plot under the building, which they own premises, as this is not expressly provided for by law.

The Supreme Court reversed the decision of the court of cassation, acknowledging their demands to be justified, upheld the verdicts of the courts of first instance and appeal.

The Supreme Court indicated that article 36 of the Housing code did not apply in the present case, and article 552 of the Civil code on the indivisibility of the fate of the building and land under it, given the fact that the developer gave non-residential premises in the building, then the project participants have any right and ownership to the land.