The Russian Federation Code of Administrative Procedure No. 21-FZ of March 8, 2015
The Russian Federation Code of Administrative Procedure entered into force on September 15, 2015. One of its chapters covers procedure in cases challenging the results of cadastral valuation. Thus, disputes over the cadastral value of real estate will now be considered in accordance with the new rules of administrative procedure.
Just as before, claims challenging cadastral value will be considered in the first instance by the courts of general jurisdiction at the level of a Russian Federation constituent entity. It will be possible to file an administrative statement of claim challenging the results of cadastral valuation within five years of the date the cadastral value is entered in the GKN (there are exceptions in which it is impossible to file a claim, in particular, if the results of a new cadastral valuation are entered in the GKN at the time of the court filing), and when claims are brought it is necessary to follow the new rules of the RF Administrative Procedure Code as to the form and content of the administrative statement of claim and the documents attached thereto. There is still a requirement that legal entities must first attempt to resolve disputes out of court in the Commission for consideration of disputes over cadastral valuation at the regional Rosreestr department. In accordance with the RF Administrative Procedure Code, the operative part of the court decision must contain a reference to the newly set cadastral value of the property.
Resolution No. 28 of the Plenum of the RF Supreme Court on Certain Issues Arising in the Consideration by the Courts of Cases Challenging the Results of Cadastral Valuation of Real Estate of June 30, 2015
The RF Supreme Court Plenum Resolution, which was delivered before the RF Administrative Procedure Code entered into force but already took its provisions into account, eliminated a number of disputed issues in the challenging of cadastral valuation, in particular, it established the concept of challenging the results of cadastral valuation, having declared the filing of a claim challenging a decision of the Commission for the consideration of disputes over cadastral valuation a way of disputing the cadastral value, clarified the rules for allocating the court fees in cases challenging cadastral value and determined the lists of parties and conditions in which they can file claims challenging cadastral value.
So, with respect to tenants challenging cadastral value7 the Plenum Resolution clarifies that tenants of state-or municipally owned real estate are granted such a right in cases where the rent is calculated based on the cadastral value of the real estate. If the cadastral value of a leased real estate property that is privately owned is challenged, the tenant will need to get the owner’s written consent to such review. The Plenum Resolution also explicitly provides for the possibility of the former owner of real estate filing a claim to challenge cadastral value if the results of the cadastral valuation affect its interests as a taxpayer during the tax period in which the application is filed.