How to get a land share on a collective farm

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Published: 07/24/2017

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When using agricultural land, it may be necessary to register ownership rights to such land - for sale, division into separate plots of land, etc. In some cases, in order to formalize rights, it is first necessary to allocate a plot of land from common property and clarify its boundaries.

• The concept of agricultural land
• Legislative regulation
• Registration procedure
• Preliminary stage
• Required documents
• Procedure
• Cost and terms

What is a land share

A land share is a part of the territory that is allocated to a person from the general land asset. It can be used as authorized capital, a consumer cooperative or a manufacturing enterprise.

In fact, a share is only a right to land, and not a plot with clear boundaries. It has a size and a monetary value, but there is no allocation of a site on the ground. The land can be used for agricultural activities, but it is necessary to take into account the interests of other shareholders.

Therefore, exercising rights to it is a relatively difficult and lengthy procedure. If a person has already received an allocated plot of land, then he can register ownership of it, which will result in his ownership of a clearly demarcated plot of land with a specific location.

A distinctive feature of the share is its one-time and free provision since 1991. It was provided to employees of disbanded collective agricultural enterprises or those who retired from them.

Disposal of land shares. Photo: myshared.ru

The legislative framework

The system of legal acts that regulates matters relating to land shares at the modern level:

1. Decree on the issuance of shares of 1993.
2. Regulations on the privatization of agricultural enterprises from 1992.
3. Law on the entry into force of the Land Code.
4. Civil Code.
5. Land Code.
6. Law on the turnover of agricultural land.
7. Law on the State Real Estate Cadastre.
8. Law on state registration of real estate and transactions with them.

Read here how land tax is calculated.

The first and second documents relate to the previously obtained land rights, but still remain in force.

How much does a land share cost?

Many different factors and parameters influence the price of a share, so it may vary. If a share is purchased for further construction, then one of the main criteria affecting the price is the location of the site.

If it is located outside the city, where the ideal solution is to build a summer house, then its price will be several times higher than usual. Basically, the specific cost is negotiated by the parties already in the process of concluding the contract.

And a completely typical situation is when in the same area the price of a share can be 30 thousand rubles, or maybe several million. If it is purchased for the purpose of agricultural use, then the factors determining the price will be:

• degree of soil fertility;
• total area of ​​the site.

Today the legislation does not provide for the procedure for calculating land tariffs. The use of foreign calculations is unacceptable, since they do not correspond to domestic reality. When concluding a transaction, it is important to achieve the desired result and avoid claims from the parties.

However, one important point should be taken into account. By law, if the owner of a share decides to sell it, he must inform the municipality about this, since he has a pre-emptive right to purchase.

The owner must write a letter to the local administration, indicating the size, location and cost of the plot. If you neglect this, subsequent transactions will be considered invalid.

If the municipality refuses to purchase or there is no response within 90 days, the person can sell the property to someone else. In this case, the cost should not be less than what was indicated by the owner in the letter. Otherwise, he faces a fine or the transaction will be declared invalid.

Registration of land share

To fully recognize the owner of a land share as its owner, it is necessary to go through all stages of state registration of the allotment. If it originally belonged to the owner, then registration as a property will take place quite quickly. If it is purchased, then you will have to invest a lot of time.

To acquire the status of owner of a plot when purchasing it, it is necessary to conclude a transaction agreement, and then submit the following documentation to the registration chamber:

• copy of the passport;
• permission of the spouse to carry out the transaction, certified by a notary;
• authority to use the share;
• sample application;
• check for payment of state duty;
• copies of notifications to other shareholders about the planned sale of the site and confirmation of their sending.

This video will tell you how to register shared land:

After this, the Rosreestr employee is obliged to give a receipt with:

• list of documents received;
• the date and time of application for a document establishing the right to land.

How to draw up an act of approval of the boundaries of a land plot, read this article.

Next, you should allocate a land share in the area. It is required to submit an application to the management of the agricultural enterprise for the allocation of a plot, which requires indicating the required location and size, and a package of documents, including:

• applicant's passport (copy);
• site diagram (copy);
• share certificate (copy);
• a copy of the sent application marked as received;
• a copy of the refusal and a copy of the protocol of disagreements (if available).

The next stage is land surveying. Registration of property rights takes about 1-2 months. You will additionally need to pay for registration services.

Use and disposal

According to the law on agricultural land, the following are not entitled to receive an allotment:

• citizens of another country;
• enterprises where more than 50% are owned by foreigners.

If a person who does not have the right to own land receives it, his obligation is to sell or donate the land within a year. Otherwise, a forced ransom will be carried out in court. These actions can be performed only after registration of the site, including:

• preparation of technical/cadastral documents;
• issuance of a passport by the cadastral chamber;
• registration of property rights.

If all the necessary documentation is available, the shareholder can personally dispose of the allotment. If there are more than 5 shareholders, a special procedure for the use and disposal of land is prescribed. It is necessary to obtain powers certified by a notary from one participant to another.

Shareholders, by their decision attached to the protocol, grant the right to one of them to represent common interests in various issues. The extract from the protocol states:

• date of approval of the decision;
• passport information of the authorized person;
• a list of actions that the shareholder has the right to perform.

Acquisition of land share

The allotment can be obtained in several ways:

• buy;
• to receive as a gift;
• gain by inheritance.

How to register ownership of a land share? Photo: myshared.ru

All cases are fulfilled if the lease of the plot is in good faith. This is possible if the following conditions are met:

• passing cadastral registration;
• there is a protocol of the meeting of shareholders indicating the terms of the lease;
• the plot is rented for 3-49 years, for hayfields and pastures - for 3 years.

The lease agreement may provide for the possibility of further purchase of the land. The size of the rented plot is not limited; it can be anything.

Nuances of allocating a land share

In order for the owner to be able to freely dispose of the plot personally, he must allocate a land share based on the part of the common land allocated to him. This procedure is accompanied by some difficulties.

How to draw up a transfer deed for land and why it is needed, details here.

If a land share is owned by people who are not involved in agricultural activities, then according to the law, most of it should belong to those who are not farmers.

A significant problem is the municipality's pre-emptive right to purchase the site. Moreover, you can wait 90 days for a response from local authorities. If they did buy the land, then other shareholders will definitely have to discuss all the issues with management.

How to find out location

It often happens that the buyer does not know where exactly the plot is located. A cadastral engineer who is involved in the allocation and surveying of plots will help to deal with this issue. You just need to contact him with a request to determine the location of the share.

At the cadastral chamber, a specialist will receive the necessary information and provide a clear location of the required plot of land. Accuracy of 20 cm is allowed.

Holding a meeting of shared ownership participants

Since previously the procedure for holding a general meeting of owners of shared ownership was not regulated by law, this often gave rise to the filing of lawsuits. Failure to comply with regulations, lack of notification of the location of the meeting, insufficient quorum - all these points could significantly affect the legal status of land ownership in the future. To eliminate possible unpleasant consequences, in 2010 the State Duma approved amendments to Federal Law No. 435, which, among other things, clarified the procedures for preparing and holding a meeting of land shareholders.

Clause 2 of Article 14.1 of the Federal Law specifies that notification of a future meeting must be published in local media or on the official website of the district (city) administration at least 40 days before the meeting. The text of the announcement must have a date, exact address and meeting agenda.

Read also: How to enlist the support of an experienced lawyer in land matters

The law also states that only shareholders, as well as those present who have the authority to represent their interests by proxy, have the right to vote in the meeting. In this case, the voting itself must take place in an open mode by show of hands or certificates (invitations).

To exclude the possibility of challenging the legitimacy of the voting results, the meeting can be considered valid only if at least 50% of the shareholders are present. In this case, the decision is approved with a simple majority of votes (50% + 1 vote) of the number of participants. The decision can also be made by a majority of those present.

An official representative of local government authorities must participate in the meeting. He does not take part in voting, but monitors compliance with legal norms, certifies the powers of participants and signs the final protocol. After the end of the meeting, any of the participants, as well as other interested parties, have the right to be provided with a photocopy of the minutes.

How to dispose of the site

The owner of a share can dispose of it in many ways:

• sell the plot;
• exchange for other real estate;
• to rent;
• donate a plot or transfer it to heirs;
• give for use;
• pledge a share;
• use as authorized capital.

In most cases, the share is leased or transferred for trust use in order to receive a profit from it.

How to find a land share, watch this video:

Pros and cons of a land share

The main advantage of the site is the possibility of generating income. This can be money received both as a result of transactions and the sale of crops at market prices. It is also possible to make a profit from the plot in the form of agricultural products.

Among the disadvantages are mandatory taxation, dishonesty of tenants, possible tricks of landlords, small harvest or its complete loss, which entails losses.

According to the law, the state can forcibly seize agricultural lands that are not used for their intended purpose, are not legally registered, or have a number of violations.

Definition of share

An accurate and correct determination of land shares is necessary not only for calculating future rent or when solving problems related to the allocation of land. It should also play a significant role in voting on various issues relating to the continuation of the lease, land use options or tenant selection.

Article 15 of the Federal Law allows you to determine the land share in various ways: in the metric system (hectares or acres), as a percentage of the total area or as a fraction (1/2, 1/3, 1/16, etc.). The only condition is that all other shares are also determined using a single method.

According to Article 18 of the Federal Law, in the absence of information in the State Property Committee regarding rights to a land share, the presence of a certificate (land share), which was received by a citizen after the dissolution of the collective farm (state farm), but before the adoption of this law, has equivalent legal force, including for concluding transactions.

Heirs who have not yet assumed their legal rights to property in shared ownership may participate in voting along with other participants upon presentation of a certificate of inheritance issued by a notary.