LawState and Law

Rent of municipal property. Only auctions!

Rent of municipal property is one of the main sources of the regional budget. At the same time, municipal property means property belonging to the urban (rural, settlement, etc.) community. Such property is usually at the disposal of the local administration, acting on behalf of the citizens of this administrative unit. We should also note that although federal legislation has approved a general legal mechanism for transferring municipal property to private hands, procedural issues are resolved locally, in accordance with legal acts adopted by regional administrations. However, consider everything in order.

General procedural moments

The federal legislation establishes a list of objects that can be rented or auctioned on a competitive basis. The list of such objects is coordinated with the antimonopoly committee. If you carefully review all the normative acts, in particular government order No. 67 of 2013, it becomes clear that the lease of municipal property is carried out mainly through open auction bidding. The order of their conduct is approved by the local administration. Naturally, this means that the sale of municipal property at an auction in Chelyabinsk is different from that offered in Tver or Kaliningrad. And the devil, as you know, lies in the details. This kind of operation is therefore best done after the necessary legal advice, and best of all - with the accompanying activities of your lawyer.

Requirements

The rental of municipal property implies compliance with certain rules and requirements. First, notice of the auction is announced 20 days before the auction. During this period, all potential bidders and other interested persons receive full information about the planned competition. It is assumed that such openness will help to avoid corruption and promote fair trading. Secondly, the list of legal entities and individuals admitted to the competition is procedurally established. Characteristically, the auction for the sale of municipal property is conducted regardless of the qualifications requirements of bidders, including the presence / absence of technological base, financial and labor resources. In the event that such requirements are ignored, the auction may be declared invalid. At the same time, the bidding organizer establishes the size of the financial deposit as a mandatory procedure, which guarantees admission of competitive participants to the auction.

Contract and obligations

Rent of municipal property is realized through an agreement between the winning bidder and the local administration. Such a contract specifies the list of leased objects, the procedure for payment of rent, penalties in the event of non-fulfillment of contractual obligations, legal powers of the parties. A separate item specifies additional obligations that the tenant takes (the preservation of jobs, the repair of premises, the reconstruction of buildings, etc.). In addition, force majeure circumstances are prescribed, which can provoke a revision of contractual obligations by mutual agreement.

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