How to acquire a land plot into private ownership? An interview with Igor Levenkov, Head of the Land Management Department of the Vitebsk Regional Executive Committee
- In our work, we are guided by Decree of the President of the Republic of Belarus of December 27, 2007 No. 667 "On the seizure and provision of land plots" with amendments and additions subsequently made to the document, -- noted Igor Ivanovich. -- Today, citizens have two options for obtaining land plots for the construction and maintenance of a residential building – to acquire a suitable plot either at regularly held auctions or without competitive bidding. This Decree grants regional executive committees the right to determine lists of settlements where land plots will be provided based on auction results, with the exception of those in need of improved housing conditions. In the Vitebsk region, such a list has been approved by the decision of the regional executive committee of May 8, 2009 No. 275 "On establishing lists of settlements and other territories". This decision can be found on the official website of the regional executive committee. In other settlements not included in the list, anyone can obtain land plots.
- Who organizes the bidding for the sale of plots?
- Auctions are conducted both by the district and city executive committees themselves, and under agreements, this function is performed by the Vitebsk Regional Marketing Center and the Vitebsk Institute of Real Estate and Appraisal. In Orsha and Polotsk, regional centers for entrepreneurship support are engaged in this activity.
- Where can I get information about plots put up for auction?
- It is available on the websites of all organizations involved in selling the above-mentioned goods, on the websites of district executive committees, and up-to-date information can also be found on the website of the State Property Committee of the Republic of Belarus, where it is concentrated for the entire republic, including real estate sales. There, you can also get acquainted with information on plots that are only planned for sale, but the auction dates have not yet been set.
- How successfully are land auctions conducted in the Vitebsk region?
- There are plots in various administrative districts that are sold quickly, and there are also those that have been put up for auction repeatedly but have not found their owners. In order to activate the work, local authorities try to select land plots in the most attractive locations, and an active advertising campaign is being carried out.
As of the end of May, 27 land plots were sold through auctions in the region into private ownership of citizens, covering an area of 4.2 hectares, for slightly more than 212 thousand rubles in total. Compared to the same period last year, the revenue from sales is higher (then it was 194 thousand for 32 plots). Traditionally, the most successful auctions were held in the Vitebsk district, where 11 out of the 27 plots sold since the beginning of the year in the region found their owners. Almost 100 thousand rubles were raised for them. In Vitebsk itself, two plots with a total area of 0.14 hectares were sold, with revenue exceeding 37 thousand rubles. Practice has shown that people are more interested in land in the summer and autumn, so the main work is ahead.
- How competitive are the auctions in practice, and are they able to significantly increase the starting prices of land plots?
- For competition to exist, at least two participants are required. Mostly, as a rule, there is only one participant, and in this case, the sale occurs at the starting price plus five percent of the initial cost (one auction step). But we have had our own records. Last year in the Vitebsk district, the starting price of 4 thousand rubles increased to 12.5 thousand rubles during the auction for almost 15 ares in the village of Novosyolki of the Letchansky village council. In Orsha, with a starting price of 11,700 rubles, the future owner, at the end of the bidding, acquired the desired plot of 13 ares within the city limits for 19,170 rubles. According to the law, for the construction and maintenance of a residential building, depending on local conditions, up to 15 ares are provided in cities and district centers, and up to 25 ares in rural areas. When put up for auction, the formed land plots must have the most essential communications – access roads, the possibility of connecting to electricity, and proximity to water supply.
- What obligations does the landowner undertake after acquiring it into private ownership at an auction?
- After registering the creation of the land plot, from the day of the officially approved design documentation for the construction of a capital structure, the owner must begin developing the plot within one year and commission the house within three years. In case of objective reasons for the impossibility of meeting this deadline, the legislation provides for an option – to officially conserve the unfinished structure for up to three years; also, the local executive and administrative body may extend the construction period by up to 2 years. As a result, in any case, eight years after purchasing the plot, a commissioned residential building must be located on it, and the land must be used for its maintenance.