• Legal Regulation
• Objects of Property
• Objects Excluded From Civil Turnover or Limited for the Civil Turnover
• Movable and Real Estate. State Registration
• Owner's Proprietary Rights
• Foreign Individuals' and Legal Entities Rights Relating to Land Plots

The principal source of legal regulation of proprietary rights is Part 1 of the Civil Code of the RF The matters of land law are being regulated by a wide range of special regulatory acts, the most material of which is the Land Code of the Russian Federation No.136-FZ dated November 25, 2001 (hereinafter referred to as the "Land Code of the RF").

Private, state, municipal and other types of property constitute the forms of property in the Russian Federation. The rights of all those who are in possession of property are protected in equal manner. A property may be in possession of individuals, legal entities, the Russian Federation, the constituent entities of the Russian Federation or the municipal entities. The Russian legislation determines a property as, first of all, things, including money and securities, and property rights. The property rights relating to a land plot apply, as a general rule, to a surface (soil) layer, water items and plants within that land plot.

The individuals or legal entities may be in possession of any type of property except for certain specific types of property that cannot be in possession of neither individuals nor legal entities as provided for by the laws.

Mostly, the objects that are excluded from the civil turnover are not allowed to be a private property. The types of such objects, the civic rights relating to which are not allowed (concerning the objects that are excluded from the civil turnover) must be expressly stated in the law. Thus, the following objects are excluded from civil turnover:

• natural resources and real estate pertaining to the state natural parks;

• certain types of pesticides and agricultural chemicals;

• certain types of narcotic and psychotropic substances;

• certain types of arms and weapons;

• space vehicles and items of ground-based space infrastructure relating to satellite navigation systems, which are being created on the account of the federal budget.

Certain types of objects are limited for the civil turnover as given below:

• land forming part of forest reserves;

• land, within the bounds of which the water objects are pertaining to state or municipal authorities;

• arms and weapons;

• precious metals and gems;

• pesticides of limited use that, further to the results of the registered tests for the pesticides and agricultural chemicals, are deemed to have an increased possibility to affect adversely the health of people and the environment;

• a variety of narcotic and psychotropic substances.

In addition to, there are a number of limitations relating to a property, which is allowed for the civil turnover. For example, the land legislation provides for the maximum gross area of the agricultural land located within the territory of a municipal district that may be allowed for the possession by one individual and/or a legal entity.

The real estate comprises the land plots, subsurface sites and all of other things that are connected with the ground i.e. these are the objects, which cannot be relocated without a damage that can be considerably inflicted to them and being not equal to their fitness for purpose, such objects also include buildings, facilities or incomplete construction projects. The items of real estate also include air and sea crafts, inland-navigation vessels and spacecrafts that are subject to state registration. An enterprise in whole, as the property complex, is also deemed to be a real estate.

The property and other proprietary interests in respect of real estate, the limitations of such rights, the creation, transfer and termination of such rights are subject to the state registration by the Uniform State Register of the Federal Service for the State Registration, Cadaster and Cartography and the territorial bodies of the latter. The registration shall be made in respect of the property rights, rights of use, rights of management, rights of lifetime inheritable possession, rights of permanent use, hypothecation, servitudes or other rights as may be otherwise specified.

Things not relating to real estate are deemed to be a movable property. The registration of rights for the movables is not required according to the general rule.

The owner may, at his discretion, commit any acts in respect of the property being in his possession as long as these acts do not contradict the law or other regulatory acts and being not in breach of interests of other persons that are protected by law, these acts include the alienation of property to the benefit of other persons; the transfer of rights of possession, use or disposition of that property remaining the owner of that property; pledging that property or creating other encumbrances; the disposition of that property in other manner.

According to the general rule, the owner shall be liable to keep his property as well as the owner shall bear the risk of accidental damage or loss of that property.

The owner of a building, facility or other item of real estate, which is located on a land plot pertaining to other person, shall be entitled to use that land plot, which has been given by such other person for the purpose of location of that real estate. In accordance with the legislation of the Russian Federation, the owner of a land plot, upon the alienation of a building or a facility that is located on that land plot, may only transfer the property rights to third persons provided that the land plot is transferred along with that building or a facility to the extent that such land will be necessary for the use of the latter.

The Land Code of the Russian Federation  provides for the opportunity of acquisition or lease of land plots for the foreign citizens, persons without citizenship or foreign legal entities.

The property rights concerning the land plots being in possession of foreign persons are subject to the two principal restrictions:

General restrictions (are set forth for all, including the Russian citizens): it can be noted amongst other restrictions: the possession, use and disposition of land or other natural resources is free to the extent that their turnover is allowed by the legislation and provided that such acts do not inflict damage to the environment and are not in breach of rights or lawful interests of other persons; the individuals and the legal entities may be in possession of any property except for the property, which, in accordance with the laws or other civil or land regulations, cannot be in the possession of individuals nor legal entities.

Restrictions relating to foreign persons: such restrictions may only be set forth by the federal law or the international convention of the Russian Federation (Part 3, Article 62 of the Constitution of the Russian Federation). The foreign citizens, persons without citizenship or foreign legal entities may not hold property rights in respect of the land plots located within the territories of the borders of the Russian Federation. The foreign persons also may not hold property rights in respect of the land plots located within other (except for border territories) specially protected territories. Such territories are, particularly, the territories within which the military or strategic objects are based.

The land plots being a state or a municipal property may be transferred to foreign persons on a paid basis only whilst, in certain cases, the Russian citizens may obtain the land plots free of charge.

The foreign citizens, foreign legal entities, persons without citizenship or legal entities, the charter (share) capital of which has been, for more than 50%, paid by the foreign citizens, foreign legal entities or persons without citizenship, may be in possession of the plots of agricultural land on a lease-basis only.