The relevant bill was adopted by the State Duma in the first reading. Industry participants find it difficult to say how many unregistered buildings are used in Russia. The owners cannot make transactions with them, but they also do not pay taxes on them. Now they want to change this
Russians will be obliged to register private homes. The State Duma adopted in the first reading a government bill on the cadastral registration of buildings and structures on land immediately after completion of construction.
If someone has built even a capital house of several floors with a basement and utilities on his private plot, he is not obliged to register it. While. This may seem surprising, but it really is. And many Russians did not register. That is, in fact, there is a house, but not according to the documents, and the tax service does not know anything about this house. And even if he does, it is still impossible to charge tax to the owner of such a property, because there is no cadastral value.
No one knows exactly how many such houses there are in Russia. Most likely, a lot. Land law lawyer Hakob Abgaryan continues:
Hakob Abgaryan is a lawyer in land law. “At the moment, our legislation does not require registration of all objects, including buildings, on land plots. If we are building an apartment building on a plot of land, then definitely, if the territory allows, a second apartment building or a guest house is being built, which is also intended for living, is also heated, respectively, but it is not registered. And unfortunately, there are a lot of such houses in Russia, a lot. I think there are more than a million of them, maybe all over Russia for sure. Accordingly, they are not taxed. No documents are issued for them. Well, the owner does not fulfill all related duties in relation to this object.”
The bill will oblige to put private houses on cadastral registration and register the rights to them immediately after completion of construction. It does not specify whether a house is considered built if, for example, it has no glass in the windows or part of the roof is missing. But it is more or less clear who and how will identify violations. As follows from the explanatory note, this will be handled by local authorities, who will do this using photo and video recording tools “without interaction with controlled persons.” Most likely, we are talking about filming using drones.
For Russians who will be obliged to register private homes, this will result in additional costs. Says Valery Vinogradov, Vice President of the Association of Realtors of St. Petersburg and the Leningrad Region:
Valery Vinogradov, Vice President of the Association of Realtors of St. Petersburg and the Leningrad Region, “When we talk about a high percentage of unregistered rights, in small Russian cities, so to speak, a little less, in the capitals, then often the non-registration of rights is precisely explained by the desire to save money. On the costs of paperwork, establishing the boundaries of land plots, their registration, payment for the services of cadastral engineers, and so on. This is a rather expensive procedure. Therefore, everyone lives the way they live — without registration, until it comes to deals. Of course, we recommend doing the opposite, registering your rights, so to speak, so as not to lose the deal due to the fact that it will take a lot of time to make such registration.”
If adopted, the law on mandatory registration of private homes will enter into force on March 1 next year. For late registration of property rights, Russians will be punished with administrative fines in the amount of one and a half to two thousand rubles according to current legislation.
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This is unlikely to scare anyone. But fines can also increase, there is time for this.
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