In modern economy, the real estate performs three major functions: 1) the means of production, 2) the subject of personal consumption (for the stay, leisure, cultural activities etc.), 3) the means of accumulation.The real estate is a key economic component. It is accounting for more than half the national wealth [1]. In the Soviet period the civil turnover of a significant part of property (land and other natural resources) was not permitted. The transition to a market economy had caused the spread of these relations on the real estate [2, 3].

But any market (especially the market of property, which is a benefit and a source of income) has a “bottlenecks”, which requires the state regulation to eliminate distortions.Such distortions are monopoly, insufficient attention to protection of environmental, vulnerability of interests of certain social groups [4].

I. Sectors and stages in development of the real estate market in modern Russia

Forms of state regulation the market of real estate depends on two main factors.

The first of them is a question about a value for society of those or other types of immovable properties and its specific when they are involved in market turnover.

The second of them is the extent (stage) of development of market relations in the specific segment and the presence of self-regulation mechanisms:

The stage (A) – when the market of real estate and its legal framework is not yet, but the principal decision on transition to market relations in this sphere was accepted.

The stage (B) – when the necessary legal base has been created, but the market relations have not formed.

The stage (C) – when the privatization of property was held and the basic legal provisions adopted (for example, constitutional provisions). But the special federal laws and other regulations which are governing the execution of transactions still no.

The stage (D) – the market is in the development stage.

The stage (E) – market was formed. Such market was establishing: 1) the stable ratio of supply and demand, 2) the market level of price at real estate.

The modern real estate market is segmented as follows.

a) The part of agricultural lands was transferred to common share ownership workers of collective farms and state farms in the early 90. Thisisveryspecificmarketoflandshares.

b) The agricultural lands that have not been privatized for various reasons, as well as non-agricultural lands used by agricultural organizations. The special Federal law (specific rules) is regulating turnover of lands in this and previous sectors.

c) The land plots of private farms, gardeners and other plots of the population are very specific land sector. They not included in the previous segments. Their turnover is regulating by the general rules of the civil and land legislation.

d) The lands of settlements and other territories destined for construction.

e) The Land on which are located forests and water bodies.

f) The subsoil plots.

g) The residential property.

h) The industrial and warehouse real estate.

i) The office property.

j) The movable objects, which are considered immovable by law. 

II. The land market

Land is a basic element of real estate. It is only place for stay all nations and generations. Land is a factor which directly or indirectly involved in the production of all other goods and services in any field of business. In agriculture sphere land is a key means of production and an important condition of ensuring food security [5]. In addition, land is an important component of the natural complex, which dependent on other components (atmosphere, hydrosphere) and, in turn, affect to them. The feature of the land market is the target use of land which is compulsory for all users. Thisistypicalforallsectors.

The specifics of the object of such transactions (land plots or land shares) are causes for the special rules regulation at land market, including the participation state in transactions with land.

So the seller of the land plot of agricultural purpose is obliged to notify in written form the highest Executive body of state power of a subject of the Russian Federation’s about its intention to sell this land plot (the law of the subject of the Russian Federation can establish that such notice should be sent to the local authority).

The additional restrictions (special regulations) are setting in respect of certain areas (for example, land plots of agricultural purpose) and for the circle of participants of such transactions (for example, foreign nationals cannot own land plots of agricultural purpose or in border areas).

The state registration of transactions with land plots is legal compulsory. Some land plots withdrawn from turnover or limited in turnover.

The transactions with land (purchase, sale, lease, mortgage and other) have a mixed legal regime. They are regulated by both civil and land legislation.

This is illustrated by the example of sale agricultural land, divided into land shares. The rule about possible to transfer lands of collective and state farms into the collective ownership of the citizens was in the “land” law (“On land reform”, 1990). But the actual mass privatization of these lands was regulated by decrees of the President of the Russian Federation land-legal orientation, adopted in 1991-1993. Then (1994) part one of the civil code came into force. It settled the issues of ownership, use and disposal of common property. In 1996 part two of the civil code was adopted. It regulates the issues as contracts of sale in general (§ 1 Chapter 30) and contracts of sale of real estate in particular (§ 2 Chapter 30) [6, 7]. But in 2001 the Land code was adopted [8]. It set a number of features of sale of land plots (article 37). Finally in 2003 the law about turnover of agricultural land came into force [9, 10]. It introduced special regime of trade of these lands and the procedures which are priority before the norms of these codes.

In some cases the norms of civil law and land law complement each other [11, 12]. For example, general rules that the objects of civil law rights may be limited in circulation or withdrawn from circulation, are contained in the civil code (article 129), but specific lists of the respective land plots and the degree of restrictions on the turnover is defined in the land code (article 27).

The same ratio is observed in respect of particular land-legal transactions. For example, the land code in addition to the provisions of the civil code, established the special features of sale of the land plots (article 37) and its lease (article 22).

Thus, the seller when concluding the contract of sale of a land plot must provide the buyer the information about the encumbrances of the land plot and restrictions of its use [13].

A number of conditions of the contract of sale of the land plot are not valid in virtue of the provisions of article 37 of the Land code. These are the conditions which are establishing the right of the seller to purchase the land plots back in their own, or restrict further disposal of the land plot.

For regulation of transactions with land plots the state is using as direct controls (restrictions, prohibitions, registration of rights and transactions) and also indirect controls. For example, it is the reduction of time and financial transactions costs through the integration of information systems and simplification of registration and recording of real estate [14, 15].

The differentiation of land rights in contemporary Russia and eviction intermediate land titles which originating from 2001 are affecting at the land market too [16]. These measures also depend by the state land policy.

III. The turnover of agricultural land plots

The greatest number of adjusting mechanisms are using in the market of agricultural land. Now the state uses the following mechanisms in regulating the turnover of agricultural land plots [17].

a) The important task was and remains the preservation of agricultural land in the sphere of agricultural production. The need to maintain the targeted use of land plots is one of the basic principles of the land law.

b) The law about turnover of agricultural land is protecting these lands from foreign capital. The principle of this law is the special procedure for granting land to foreigners (only a rent). Even if a foreign person became owner of the agricultural land legally (for example, as a result of inheritance), this owner should sell these land during the year.

c) At the turn of XX-XXI centuries, the domestic market of agricultural land was in the formative stage, when the disadvantages of growth and the distortions were inevitable. Therefore the state was needed of the mechanism to prevent the economically unjust transactions. This mechanism is the priority right of the state (or the municipality) to redeem agricultural land if these will be put on sale.

d) The important regulator of land turnover is to limit the excessive concentration of areas. This regulator suppresses the monopolistic manifestations (an owner, concentrating in their hands a great part of the agricultural land, can dictate the prices on the local market, also he can influence on level of pay for workers in the agricultural production).

e) The law about turnover of agricultural land established that a land plots may not be less than the minimum size permitted by the state.

IV. The land shares

Now the turnover of land shares became the most problematic on land market. The total area of the land shares is 107, 4 million hectares [18] (53% of all agricultural lands). This is a very significant segment in modern agricultural land-use.

The formation of land shares should lead to an increase the degree of mobility in the relevant sector of the land market. But in practice such shares became the obstacle in the development of market. The formation of land shares, should are simplifying self-regulating in the sphere of agricultural land use. But in real, vice versa, it was canning of the land use and its problems.

The state’s position in the issue of land shares changed repeatedly. First, all of the 90, the capacity to commit any kinds of transactions on alienation of land shares was expanding. In this period legislation was allowing their sale to third parties without any limitations of such transactions in favor of the other co-owners or agricultural organizations. However, after adoption in 2002 of the law on turnover of agricultural lands the situation is developing in the opposite direction. The rights on land shares were limited by this act. In 2005 legislator is making a number of amendments to this act. Such amendments actually are deprived owners of land shares of their pre-existing rights.  Now he can only bequeath their land share, to refuse from it and to pass it on to another co-owner or farm. The owner of the shares, who wants to use it as in the 90s, should distinguish it in the land plot.

In result, the unclaimed land shares appeared (the total area of 25 million hectares). To solve this problem, the legislator introduced in 2011 mechanism which allows transmission such land shares in municipal property (in court order). Butthisraisessomedoubts.

a) With legal position – the ability expropriate land only for the fact that the owner for a long time elects a variant as dispose of their property – is it correctly?

b) With moral position – the state gave farmer a land, but now changed his mind and take back.

c) With economic positions – can whether the municipality to organize rational use of such land? Will not arise whether conflicts between them and agricultural organizations, which use in practice relevant land?

V. Other real estate

The principle about unity of destiny land and facilities which strongly associated with land is crucial for other types of real estate. According to this principle all strongly associated with land objects follow the destiny of the land plot.

Now forests and isolated water objects is no considered as independent component property. In an earlier period (before 2006) they were real estate. This gave rise to some ambiguity in the legal status of such objects. For example, forests (standing timber) were related to immovable property, but harvested wood was as movable property. Now the forest is the “belonging”, which follows for fate of “main thing” – the land plot. Respectively, the disconnecting affiliation from the main thing is a phenomenon quite common. Therefore, since 2006 the forest legislation has divided the concept of a forest as a single system into two parts: 1) the forest plot and 2) forest plantations [19].

The all subsoil within the boundaries of the territory of the Russian Federation is state owned. Subsoil plots are not subject to purchase, sale, gift, inheritance, deposit. But the subsoil use rights may be alienated or transferred from one person to another. The special mining law regulates the use of subsoil. But, in addition, land law gives the owner of the land plot the right to use for their own needs existing on the land plot of common minerals.

The state regulation of the market of residential and non-residential property includes such universal regulators as cadastral registration, registration of the rights, tax regulators. The participation of the state in development of infrastructure for same objects to some extent also can be considered as the method of state regulation in this sphere. It is impacting on functionality and cost of such objects.

The state is used specific regulators for regulate turnover of movable objects, recognized immovable under the law (aircraft and sea vessels).

CONCLUSION

The regulation of real estate market by the state must evolve taking into account the changes in the relevant legislation and provide solution of tasks connected with the implementation rights to immovable property. It must also provide free pricing of real estate, investment, solution of the housing problem and fair taxation.

The land legislation is one of the key industries in the domestic legal system. It regulates the use and protection of land as the most important unique natural resource. This resource has the ability to fertility; it is the spatial basis for any business activity. Also the land legislation regulates to a certain extent the issues of the civil turnover of this resource.

As a result of comprehensive socio-economic reforms of the early 90-s, a significant part of the land, formerly in the exclusive property of the state, was privatized. Now the land plots are involving in civil turnover. All this led to the formation in our country of a completely new type of land relations. They demanded a radical update of the land legislation.

Over the 90-s the issues of private land ownership, conditions for granting land plots to citizens and legal persons, land market and its infrastructure caused controversy in academic and professional environment. As a result, although the land legislation, significantly updated in the beginning of 90-s, later (in the middle and the second half of the decade) it is practically not developed.

The adoption in 2001 of the Land code of the Russian Federation (the “Land code”) [20], has allowed to solve a large part of the legal problems of land sphere that have accumulated in the 90-s. It defined for medium-term perspective the legal regime of use, protection and turnover of land.

At the same time the land relations are continuing to develop dynamically after the adoption of the code, as well as a number of other important legislative acts, developed its provisions. As a result, to date, a number of problems had accumulated in the land law.

Methodology and materials

The author collected and analysed the materials on this topic during all period of land reform in modern Russia (he began this in late 80-s). Author used abstract-logical, comparative-legal, formal-legal and historical methods. The materials for this research were normative legal acts, official and other reports and works of other scientists. To a certain extent, the findings and results are based on the experience of the author (more than 20 years he was directly involved in preparing the relevant decisions and their correction).

I. Instability of the land legislation

The development of socio-economic reforms, the necessity of detail provisions, which previously was non-essential, require the constant updating of the legislation. It is an ongoing work.

But in recent years, the problem of deficiency of the federal land legislation, peculiar to the 90-s years, has been replaced by the problem of its lack of legal stability in the land sphere. So, the current land legislation is still very dynamic, although the active phase of the land reform has been completed. In recent years the legislator introduced a lot of amendments to the Land code. Key federal law in the land sphere that developed the code provisions or had resolved the issues that were not included in him for various reasons, are substantially modified or even cancelled.

So the Federal law «About differentiation of a state property on land» (2001) was invalidated in 2006 in connection with that provided them the procedure of separation was quite difficult.

The federal law [21] about turnover of agricultural land (2002), after just 3 years after the adoption has undergone significant changes in terms of the limitation of rights by the order of land shares and the removal of the state from regulation of the market of such shares. The quite principal amendments were made to this law later. In particular, according to the amendments of 2010 the unclaimed land shares can be attributed to the municipal property (read more about the changes to this law over the past 10 years [5] ).

The federal law «On state land cadaster» (2000) had determined the role and place of the land cadaster in a market economy. But in 2008 it lost force. At present, these issues are regulated by other Federal law «On state cadaster of real estate».

In 2008 a number of important provisions related to the territorial land use planning was expelled from the federal law «About land use planning» [23]. It is very debatable. In addition the land plots ceased to be the object of land use planning though they were such object throughout the long history.

Finally the federal law [25] «About transfer of lands or land plots from one category to another» (2004) which still has not undergone radical changes probably will be cancelled in connection with actively discussed issue about the refusal from Institute category of land.

Also the specificity of the current moment is that the last 2-3 years actively considered the problem of updating of the civil legislation, which is quite closely intertwined with the land legislation [1, 18]. The radical reform of the civil legislation, if it would implemented in full, probably, it would entail a cardinal renewal and the whole system of normative legal acts regulating land relations. However, the revision of the system of rights of real estate (for example, the appearance of such titles as the right of permanent land tenure, the right to development, the right to personal use real estate) and the other norms associated with land issues, apparently, in the nearest future will not occur. But this does not mean that such innovations are excluded in the medium term.

II. Re-registration of rights to land

Now the system of land rights includes: 1) the old land rights, preserved since the Soviet times (permanent (unlimited) use), 2) new rights which have arisen in the course of reforms and complying with the market land relations (private property, rentals), 3) transitional form, characteristic of the most active periods of the land reform (lifetime inheritable possession) [12, 15].

Moreover, in the 90-s it was assumed that these rights remain a long-term perspective (so the part one of the Civil code of the Russian Federation [19] adopted in 1994 by has not provided any time limitations for all these rights). But according to the Land code (2001) the granting of land by right of lifelong inherited possession and by the right of permanent (perpetual) use stopped. Persons who have land on such rights must re-register their rights on the right of private property or rentals. An exception is made only for very limited circle of legal entities – state and municipal institutions, state enterprises, centres of historical heritage of the presidents of the Russian Federation, stopped his powers, bodies of state power and bodies of local self-government, as well as the state Academy of sciences and sciences establishments created such academies.

Any term of such re-register for the citizens is not installed. The deadline for re-legalization of the right of permanent (perpetual) use of land for legal entities was first installed in 2004, but then he has been repeatedly extended. However, in 2012 this deadline has arrived. Furthermore such a term for land plots, where are the linear objects (communication lines, pipelines, roads etc.), will come only in 2015.

To influence on legal persons which evading from the re-registration, from 2013, the legislation was installed administrative liability (the fine of from 20 to 100 thousand rubles) in case of violation by them of the term and the procedure re-registration right of permanent (perpetual) use of land for the right of land lease or the acquisition such land plots in property.

However, it is still unclear how effective will be these penalties (possibly pay the penalty would be easier)? Also up to the present time the question of renewal or non-renewal of the term of the re-registration for land plots, where are the linear objects, is not solved.

In addition, on the one hand, a certain simplification of land-property relations and the eviction forms of the transition period, indeed, are justified. It is helping to create conditions to facilitate business. On the other hand, it is unclear, what is the public danger of the delay with re-registration of previously accrued rights? Moreover, for almost 10 years the state itself repeatedly postponed this deadline. Simplifies whether it the conditions for business in the country? 

III. Unclaimed land shares

Perhaps, currently, land shares are the most difficult problem in the agricultural land use. The mass privatization of agricultural lands was held in 1992-1993. But the problem, arisen in these period (land shares), was not resolved until now. To date, nearly a quarter owners of land share all have not yet taken any action by management of the land, inherited by them in the property. There are unclaimed land shares.

In the period 2006-2009 scientists and experts had actively discussed the possibility to apply to the shares the procedure provided to an escheated property. However, this proved to be difficult. So, the decedent’s estate is considered escheat only if there are no heirs, or they have no right to inherit, or they debarred from the inheritance, or they refused from the inheritance or none of the heirs has not received the inheritance.

At first glance, the situation with land shares is exactly the failure of the inheritance. So, relatives, who are the heirs of deceased citizens-owners of land shares, are living in the city, they did not contact with anyone about land shares, etc.

Meanwhile, their passivity is not enough for uniquely classifying the relevant land shares as escheated property. Because, until proven otherwise, legislation considers that the heir has accepted an inheritance. He could take possession the other property of the testator. He could make measures for the conservation it, for the payment of its content or to obtain from third parties cash owed to the testator, etc. All these actions demonstrate about the actual acceptance of the inheritance.

Thus there is a high probability that such acts may be committed only with respect to the other property of the testator, and not of land shares. But, as you know, the estate passes to the heirs in the order of universal legal succession as a whole. Therefore, the adoption of the heir though of least part of the inheritance means the acceptance of the whole inheritance due to him.

In this regard, the legislator decided to go another way. He recognized such shares unclaimed. Norms, which entered into force in 2011, should induce the owners of unclaimed land shares to take legal action with their shares. As result a portion of such shares will cease to be unclaimed. But the land shares, which will remain unclaimed, will be seized in the municipal ownership with using the court’s procedures. At the same time, the significance of the solution to the problem of unclaimed land shares through transfer their in the municipal property should not be exaggerated (read more – [11, 15] ). 

IV. Possible refusal from land categories

The division of lands for the intended purpose on the category is one of the key principles of modern Russian land legislation. According to this principle, the legal regime of land is determined on the basis of their belonging to a certain category [4, 16].

The land code provides seven categories of land:

1. Lands of agricultural purpose.

2. Lands of settlements.

3. Lands of industry, energy, transport, communication, broadcasting, television, computer science, lands to space activity, lands of defense, security and other special purpose.

4. Lands of specially protected territories and objects.

5. Lands of the forest fund.

6. Lands of the water fund.

7. Lands of stockpile.

However, the division of the land Fund of the categories which was formed in the Soviet period is not fully corresponds to the current features of the development of land relations. It is not sufficiently differentiating the kinds permitted use of land plots. Also the existing categories and the procedure of their changes do not provide the reliable protection from the transfer of agricultural land for construction. In addition the institute of land categories differs by its procedure from mechanism which installed the town planning legislation for cases establishing and changing of the permitted use of lands.

Also note that modern land categories were formed in conditions of exclusivity of state ownership of land. In that period they not only identified the legal regime of the land, but also largely been focused on the purpose of the calculation of the land as a state resource.

In this regard, the past two years actively discussed a question about the abolition of the Institute of land categories. In particular, the principles of state policy of use of the land fund of the Russian Federation in 2012 – 2017 provide an exception from the land legislation the principle of division of land for the intended purpose on the category.

As a primary mechanism, which should replace land categories, is proposed a zoning. In the context of this issue is also considered a proposal for the introduction along with the existing terms of the using territory (the town-planning, forestry) also the agricultural terms, which will define the main rules and conditions the using of agricultural lands.

The process of transition from categories to zoning will require a relatively long period of time. It is connected with necessity of development and approval of norms for the use of the territory, with the establishment borders of especially valuable lands, with the addressing issues of changes in the cadastral value of land plots (now appraisers is used of different methodology for plots by various categories). Accordingly, the transition to the new system will require an interim period of 3-4 years.

During this period, on the one hand, the current rules of the change of the target purpose of land plots should continue act. On the other hand, the Federal, regional and municipal authorities must have sufficient legal grounds to take regulatory decisions necessary for the transition to the system of zoning (read more – [6] ). 

V. Legal regulation of land use planning and cadaster

Land use planning and land cadaster always been a key tool of implementation of the state land policy. So, “Piscovye land surveying” was cementing the lands together with serfs for landlords. The Stolypin’s reform destroyed the peasant community. This reform had included measures by land use planning. In Soviet period, the nationalization of land and the collectivization of the peasantry were also linked with the land use planning and the activity on land accounting. The land use planning obtained the highest rise in the Soviet period, when it had the greatest influence on the land users and the organization of the territory [17].

During the land reform of the 90-s, the role of land use planning was very important. These were the works on transfer lands to the rural Soviets of people’s deputies, the formation of a special land fund and the other measures related to the agrarian and land reforms.

But for the last 5-6 years, the legal regulation of land use planning and the united cadaster of real estate (land cadaster became his integral part) has considerably changed. The procedure of accounting of the real estate objects and their preparation for such accounting are unified with regard to the principle of land legislation about the unity of the fate of a land plot and located thereon immovable objects [3, 13]. Now all the work on formation of land plots and the establishment of their borders have moved on from the composition of the land use planning to cadastral activity, which is carried out by cadastral engineers [9].

Currently, however, the role of land use planning may be strengthened with regard to the implementation of food security Doctrine of the Russian Federation. This Doctrine provides for the more rational use of agricultural lands, the increase of soil fertility, the expansion of sowing of agricultural crops at the expense of unused arable land. Therefore, the development of the agriculture sector, the attraction in it investment must enhance the relevance of the on-farm land use planning, the various inventory of land and the works by assessment of the quality of land [8].

In addition, we have already noted that simultaneously with the refusal of the Institute land categories discussed the question about the introduction special agricultural terms. The development of such regulations should become a part of the land use planning. The existing legislation determined that the land use planning includes the measures of planning and organization of rational land use. These measures in respect of land plots, which are in the borders of agricultural areas, perform expedient in the context of the development of such agricultural terms. 

Discussion

This article generalizes and systematizes the results published by its author in various scientific editions [6, 7, 10 and other). The responses on them received from a number scientists and specialists. 

Conclusion

The prospects of the land law are predetermined by that any legislation is changing with the development of the processes occurring in the economy and social spheres, as well as in other sectors of legislation which close to him. The rapid stage of development of our society (90-s years) led to the formation of the present very specific land legislation. Now it includes both a separate norms and institutions, characteristic of the Soviet period, and new rules oriented of the market relations.

The legislator for the settlement of the problems, which highlighted above, should take into account the reasons of their occurrence. This settlement should to correspond to the general orientation of socio-economic development of the country, to be linked with the reforms of the related legal sectors. Also it must to eliminate the available individual inconsistencies in the land legislation.