Analytics Legal analytics

21
June
2016

Analytical overview of key issues in the field of real estate, land, and construction

The VEGAS LEX Law Firm has released a collection of publications in the years 2015-2016, on current issues in the field of real estate, land, and construction.

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
26
January
2015

The Supreme Court specified the explanation provided by the presidium of the high arbitration court with respect to the payment for the works completed with no public contract

The amount of the disputes resolved in court and related to the scope, quality, cost and terms of contracting works is permanently large. Most of them arise out of the relations associated with the works performed for public or municipal needs. In the current economic context, the amount of such disputes will only be increasing. It is not uncommon that the mater in dispute is related to the payment for works performed by the contractor for public or municipal needs with no contract made in accordance with the established practice.

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
3
July
2014

“Unfinished construction” will be taken via court

Federal Law dated 23.06.2014 No. 171-FZ “On Amendments to the Land Code of the Russian Federation and Certain Legislative Acts of the Russian Federation”. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
7
March
2014

The privatization of land allocated for construction, has been set back due to changes in the permitted use

The Presidium of SAC RF once again returned to the issues of establishing and changing the characteristics of a land plot, which determines its legal status, as the type of permitted use. This time the subject of the dispute was the question of the establishment of the permitted use of the land, given in the right of ownership to the owner of real estate objects located on the land plot, in a situation where previously this area was granted to him under a rental agreement for the new construction. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
31
July
2013

The Presidium of SAC RF approved the “guaranteed retention”

Retention of a part of the payable price of work results, is a fairly common method used for the enforcement of warranty obligations of the contractor. In reviewing this kind of dispute, the courts, as a rule, did not see anything objectionable in the contractual terms, according to which part of the price of work would be paid by the customer to the contractor only after the warranty period expired. However, in cases where the obligation to pay for work are stipulated by the parties as dependant on the occurrence of an event, which does not meet the grounds of inevitability, the courts recognized this condition as contrary to Article 190 of the RF Civil Code. Analysis of this question was carried out by the example – dated 23 July 2013 – review by the Presidium of SAC RF of Case No. A40-131858/11 involving the dispute between Mobile Design and Construction Association Shakhtospetsstroy CJSC (Krasnodar Region, Sochi) and RAKSON LLC (Moscow Region, Odintsovo) on debt collection under the contract on subcontracting of construction – in our new review. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
14
May
2013

Was the Presidium of SAC RF able to cope with the legal nature of investment contracts and “the city’s share”?

The new review is devoted to the decision of the Presidium of SAC RF No. 12444/12, published on 07.05.2013. In the reviewed decision, the Presidium confirmed the possibility of concluding a contract, containing elements of both civil and legal transactions, generating the emergence of civil liabilities, as well as elements of a public-law contract, such obligations are non-generating. Such an agreement is not contrary to existing legislation.

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
30
January
2013

The Supreme Arbitration Court explained provisions of the Russian Civil Code regarding lease

On 25/01/2012 the Plenum of the Supreme Arbitration Court issued a ruling "On introduction of amendments into the ruling of the Plenum of the Supreme Arbitration Court (SAC) of 17/11/2011 No. 73 "On certain aspects of application of the Civil Code rules on the lease contracts".

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
20
June
2012

Transactions with state property: victims may be legitimate users

Disputes about competence between the organs of state power – are not uncommon in judicial practice. Often, however, the injured party in these disputes is a conscientious individual, which once again demonstrates the need for that extra caution when making deals with the state. One example of this is the case before the Presidium of SAC RF. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
1
April
2011

Conflict Prevention in the implementation of investment projects and real estate transactions

Endless disputes between the customer and the general contractor, the developer and the investor under the construction contract, investment and other agreements in the implementation of investment and construction projects. On the one hand – the customer and investors are dissatisfied with the quality and timing of construction and the transfer of the facility, on the other hand – the general contractor, dissatisfied with the order and terms of payment for the work. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
16
February
2015

The mere fact that the contractor has performed the work, does not lead to the emergence of a customer’s obligation to pay for their results (Supreme Court of RF reviewed the latest dispute involving a state contract)

In accordance with Paragraph 1 of Article 702 of the Civil Code of the Russian Federation (hereinafter – the Civil Code), under a contractor agreement, one party (the contractor) undertakes to perform, on the instructions of another party (the customer), some work and deliver the result to the customer, and the customer is obliged to accept the result of the work and pay for it. Similarly defined is the object of a building construction contract and the contract for the performance of contractual work for state or municipal needs. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
22
August
2014

Presidium of the Supreme Arbitration Court “softened” fixed prices

During its entire existence, the Presidium of the Supreme Arbitration Court of the Russian Federation never applied the interpretation of Paragraph 6 of Article 709 of the Civil Code, and literally three months before the termination of its activities, adopted two resolutions on cases, the subject of dispute of which involves the payment of a fixed price. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
21
March
2014

SAC RF explained dispute settlement procedure involving the recognition of contracts as not concluded

Reference to the non-conclusion of a contract is often used by trade participants during the resolution of disputes relating to the non-fulfilment or improper fulfilment of obligations. Recognition of a contract as being non-concluded allows one to change the qualification to non-contractual obligations (as a rule, the obligation stemming from unjust enrichment), to escape from the liability provided by the contract, etc. The Presidium of SAC RF in the Information letter dated 25.02.2014 clarified some issues in the recognition of contracts as non-concluded. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
12
August
2013

A share in the future object as the subject of a contract on the establishment of property

Implementation of investment projects in the field of capital construction is often carried out by several participants (co-investors). Regulation of relations between project participants depending on the nature of the agreements reached, and the role of each participant in the project can be carried out using a variety of contractual structures. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
27
May
2013

State fee is not refundable in the event of failure in the performance of a legally significant action

On 23 May 2013, the Constitutional Court of the Russian Federation announced its decision on a case involving the constitutionality of Art. 333.40 of the RF Tax Code, which establishes the grounds and procedures for the return of the state fee paid for the performance of legally significant action. (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
8
May
2013

Preliminary contract in structuring Real Estate Transactions

On April 24, 2013, two Rulings of the Presidium of the RF Supreme Arbitration Court were published, giving a legal qualification to the relations of the parties arising from a preliminary contract. It is not the first time the Presidium has addressed this issue (see, for example: Ruling No. 3056/07, dated July 17, 2007, No. 402/09, dated July 14, 2009, No. 13331/09 dated January 19, 2010), however, we would not say that the institution of preliminary agreements frequently becomes an object of attention of a supreme court jurisdiction.

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
7
December
2012

Legal "uncontrolled settlement": the Praesidium of the Supreme Arbitrazh court explained procedure for registration of the ownership rights to the buildings constructed before 1995

It's not a rare case nowadays when the company among other property owns real property constructed using own resources before 1995. Very often such buildings are used without any title documents as the relevant ownership rights were not registered in the Unified State Register of the Rights to Real Estate and Transactions therewith. In fact this entails the impossibility to sell and purchase such buildings and additional difficulties with the registration and re-registration of the rights to the land-plots.

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
4
April
2011

Conflict resolution in the field of investment and construction activities

Recognizable feature of the post-crisis period is the “worsening” of non-fulfilment of mutual obligations, including in connection with problems with finding financing for projects, with the well-known consequences: the suspension of financing, “freezing” of a number of projects, with a substantial increase in the cost of borrowing – decline in the market price of the object. How to pay for the work, what to do with the object, how to get out of an investment project that has become unprofitable? (This legal update is available only in Russian)

Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice

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