RussianLegal Successfully Reduced the Cadastral Value of a Leased Land Plot to Accommodate a FMCG Warehousing Hub in Moscow from RUB 450m to RUB 150m
RussianLegal Successfully Reduced the Cadastral Value of a Leased Land Plot to Accommodate a FMCG Warehousing Hub in Moscow from RUB 450m to RUB 150m.
Cadastral value is the amount that is used as a basis for calculating land taxes, rental payments, and prices for state-owned lands to be sold to private owners. According to the letter of law, the cadastral value of a property must be equal to its fair market value. In practice, however, it is often unreasonably overestimated. While this practice looks quite logical to governmental authorities, it will be heavily detrimental to a healthy business climate.
Russian courts tended to be increasingly reluctant to satisfy cadastral claims against the Federal Service for State Registration, Cadastre and Cartography (Rosreestr) in recent years, but RussianLegal managed to succeed by working hard at both the pre-trial and trial stages.
In particular, in response to Rosreestr’s statements challenging the results of the forensic examination, we proved that the actual use of a land plot is the only parameter that must be taken into account when determining its cadastral value. Therefore, contrary to Rosreestr’s allegations made before the court, the possibility to use a property in dispute for any trade activities (in addition to warehousing operations) may never result in an increase in its cadastral value.