Barter Agreement for Agricultural Land Changes in 2021

A land exchange agreement can be formed in relation to any movable and immovable objects. Such relations are regulated by civil law. This type of transaction has a paid value. It provides that the parties have a mutual exchange of powers and responsibilities. In addition, they pass objects to each other.

When completing this transaction, it turns out that each participant is expressed as a seller and a buyer. It will be necessary to register the rights to the allotment. This must be done when contacting Rosreestr.

Exchange rules

You can exchange an agricultural plot for a plot intended for the construction of residential buildings. In this situation, compliance with the requirements reflected in the legislation becomes a prerequisite. The rules are prescribed in land and civil law. It is worth pointing out that only the owner has the authority to dispose of land plots and other property. If a person has temporary rights to an allotment, then he does not have the opportunity to make transactions involving the object in question. It is worth pointing out that transactions involving land plots are subject to mandatory registration. This can be done by contacting Rosreestr. This is due to the fact that land plots are classified as real estate.

IMPORTANT !!! We can highlight the key points that will characterize the barter agreement. In particular, they consist in the fact that within the framework of the transaction, a mutual transfer of powers and obligations is realized. Two subjects of the contract will need to be reflected in the agreement at the same time. An exchange assumes that a plot of land is being exchanged for the same property or for another. For example, these could be vehicles, premises, etc.

The contract may indicate that one party is obligated to pay a second amount of money. This happens when an exchange of objects of unequal value is realized. Regardless of what type of agreement the act being formed belongs to, it will be necessary to agree on the terms regarding the cost. Therefore, you need to use a sample of 2021 equivalent objects. It will help you avoid making mistakes when concluding a deal.

When it comes to land plots, it is noted that the value expression can be determined using price indicators established in the cadastre. The indicator established in the cadastre is taken into account. Market prices may also be taken into account. Most often, it is stipulated that the value of the exchanged objects is equal, so there is no need to include conditions regarding additional payment in the agreement. It is worth pointing out that a land plot can be recognized as a subject of exchange. This is influenced by the established purpose. It is reflected in acts of establishing law.

For the new owner, a similar regime for the use of the territory will be established as was previously applied. It can be changed provided that there is an appropriate decision from the authorities. The rules regarding my allotments will need to be taken into account.

IMPORTANT !!! When the rights of new owners are registered, the same restrictions and encumbrances remain that were previously in force for the site. An example is easements. They have such varieties as public or private. When there is a house or other building on the plot, it will be necessary to alienate it simultaneously with the plot.

Sometimes situations arise that the land plot is not completely alienated, but part of it. For example, when shared ownership is established. Then the citizen has the obligation to initially offer to buy the plot to the remaining owners. Sample 2021 Rosreestr indicates that the exchange agreement has many similarities with purchase and sale transactions. The types of contracts under consideration have the same form. This is due to the fact that ownership rights are transferred on the basis of compensation provisions. There will be tax consequences for each party.

Features of the land exchange agreement

First of all, it is necessary to take into account that the plots themselves, which are the subject of the transaction, are of equal value. From which it clearly follows that there is no possibility of disputes about the value of these objects.

If a barter is to be concluded regarding two plots, the price of one of which is clearly lower, then the obligation of the party to whom such plot belongs is to pay additionally the corresponding difference in value. This additional payment can be made before the land is transferred to the contracting party of the allotment at a lower price, or immediately after that. In addition, other types of compensation for such price differences are allowed.

The form of compensation, as well as other conditions for its implementation, must be specified in the text of the agreement.

Attention should be paid to the fact that the exchange of one plot for another does not necessarily have to be simultaneous. It is permissible in the agreement to indicate different dates when the direct transfer of ownership rights will take place. According to the established procedure for fulfilling obligations, first one participant transfers its rights to the counterparty, and only then, accordingly, the other.

If the terms for the transfer of land in the document do not coincide, you should refer to Article 328 of the Civil Code of the Russian Federation, where the procedure for reciprocal fulfillment of obligations is reflected at the legislative level. It also regulates situations when one counterparty does not fulfill its obligations, which gives the second party the right to stop fulfilling its obligations or to terminate the transaction altogether and demand compensation for losses from the guilty party. The very aspect of transferring ownership rights to exchangeable land plots is prescribed in Article 570 of the Civil Code of the Russian Federation.

According to this article, plots of land acquired in this way (exchange) pass into the possession of the other party after the mutual fulfillment of their obligations specified in the document by both parties.

Important features of barter regarding the seizure of land acquired through exchange are spelled out in Article 571 of the Civil Code of the Russian Federation. According to the rules of purchase and sale established by the legislation of the Russian Federation, the object being sold must be free from encumbrance by third parties. The same rules apply to barter. However, an exception is possible: the second party is aware of the existing encumbrances and voluntarily agrees to accept such an object.

Otherwise, certain consequences will follow for the unscrupulous participant in the transaction: he will be forced not only to compensate losses to the counterparty, but also to return the received land plot.

Procedure

Due to the fact that plots are considered immovable objects, certain requirements apply to the exchange agreement. They are that the agreement must be in writing and registered when contacting the Rosreestr branch. If we talk about a plot in respect of which shared ownership has been established, additional conditions are envisaged. They consist in the fact that it is mandatory to send notifications to persons owning a share of the plot. These papers are subject to mandatory registration when applying to a notary office. Without performing the specified actions, the agreement is considered invalid. When the terms of the deal were agreed upon. We are talking not only about essential ones, but also about additional ones. An agreement is formed between the parties.

IMPORTANT !!! The document must contain the specified data. Specifically, this is the day and time when the formation of the contract occurred. Detailed information is also provided for each participant. You need to write your last name and initials, residential addresses and data on the acts by which their identity is verified. If the party to the agreement is an organization, its name, address and other required details are indicated.

It will be necessary to indicate the subject of the drawn up agreement. Both objects are described, the exchange of which is realized in reality. It is necessary to indicate whether each participant in the relationship has ownership rights in relation to the allotment or other item. A value expression is established for them. If an advance payment is provided at the conclusion of the agreement, then you will need to specify when and in what order it is paid.

Land exchange agreement: key points, sample 2021

In addition to a detailed description of the characteristics that can be used to characterize the areas, graphic plans of the territories that will be exchanged between the parties should be attached to the document. It is only in their interests to make a preliminary assessment of the land and clarify its cadastral value. The owners themselves must take care of this if they want the transaction to be as transparent as possible.

If there are objects located on the plots, you need to indicate the fact of their presence, as well as state the intended purpose of the land, so that it is clear how the territory will be exploited. Directly when discussing the conditions, the parties should also discuss issues regarding the presence of arrests or easements, since this directly affects the ability to freely dispose of the site. If there are land disputes or third parties claim the property, these issues also need to be resolved. In a situation where land acts as mortgage collateral, it is necessary to notify the other party of such an encumbrance.

If the document does not indicate the features of the exchanged plots and their value, then on the basis of the current Civil Code such plots are considered to be of equal value. A typical exchange agreement concerns transactions in which equal-valued plots are exchanged, but there are often situations when it is necessary to carry out an unequal exchange. A land exchange agreement is a document on the basis of which two parties to a transaction have the opportunity to exchange one piece of land for another. The process is regulated by Article 567 of the country's Civil Code. As a result of concluding such a transaction, both counterparties have the opportunity to privatize the land received in exchange, although in practice it is possible to exchange not only a plot, but also a residential premises or a car.

A preliminary agreement for the exchange of plots is a regular document in which both parties express their desire to conclude a deal in the near future. According to current legislation, the formation of a preliminary agreement is not necessary; the parties sign such an agreement at their own discretion. In practice, if there is a preliminary agreement, the chances of successfully concluding a transaction and completing the exchange increase. However, this does not eliminate the requirement to conclude a full-fledged agreement in which all the above details are described.

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The order in accordance with which the actual transfer of objects occurs is subject to reflection. The rights must be registered with every citizen who takes part in the transaction. If there are restrictions and encumbrances, they are prescribed in separate provisions of the agreement. In some situations, it is stipulated that it will not be possible to register rights without a citizen who is the second party to the encumbrance. An example of such a relationship is a pledge. It is used to ensure the repayment of borrowed funds on a loan or mortgage. The procedure for applying the transfer of rights to individual objects may have significant differences. When a plot is changed to another property, then at the same time, when applying to Rosreestr, registration of rights to both objects is carried out.

ATTENTION !!! When exchanging a plot for a vehicle, you will need to additionally contact the traffic police. This must be done to register rights to the car. When the second object is movable property, the transfer of powers will not require registration.

This suggests that a concluded act reflecting the acceptance and transfer of the object will be sufficient. The civil law states that if there is no data on value in the agreement, they are considered equivalent. This indicator is of particular importance when calculating the taxes payable by each of the parties to the relationship. This occurs after the registration of the agreement ends.

It is worth considering that at present there is no point in indicating in the agreement a cost that is actually much lower than the real one. When the papers are submitted to the tax authorities, desk-type verification activities are carried out. If they determine that market value indicators are lower than what is reflected in the cadastre, then the second indicators are used for calculation.

Registration

To transfer authority from one person to another, it will be necessary that all items in respect of which the transaction is made be registered. The parties must contact the Rosreestr office. In addition, it is possible to complete documentation when visiting the multifunctional center. Citizens will be required to prepare documentation. It is presented in the form of an application. It is written using the established template. The identity of each participant in the transaction must be confirmed using documentation. Documentation issued to organizations for conducting activities can also be used for this purpose.

IMPORTANT !!! When a representative is involved in the transaction, you will need to contact a notary office and have the power of attorney certified. Otherwise, this act is considered as inconsistent with reality.

You will need to collect papers of the right to establish value and those documents that are generated when transferring the objects of the transaction. Regarding property, these are certificates or extracts. They were made when contacting the Unified State Register of Real Estate. You will need to collect boundary documentation for the site. If the land has not previously undergone a registration procedure, land surveying is initially required. This requires payment of a state fee.

The amount varies depending on who pays. If this is a person, then the amount does not exceed 2 thousand rubles. For enterprises the value is 11 times greater. The registration period is reflected in the law. It depends on the chosen method of circulation. The period varies from a week to 12 days. In the latter case, a visit to the department of the multifunctional center is implied.