On the privatization of non-agricultural land plots (LRU-728-son)

15.11.2021

Law of the Republic Of Uzbekistan

Adopted by the Legislative Chamber on September 24, 2021 Approved by the Senate on September 30, 2021

Chapter 1. General Provisions

Article 1. Purpose of this Law

The purpose of this Law is to regulate relations in the field of privatization of non-agricultural land plots.

Article 2. Legislation on the privatization of non-agricultural land plots

Legislation on the privatization of non-agricultural land plots consists of this Law and other legislative acts.

If an international treaty of the Republic of Uzbekistan establishes other rules than those provided for by the legislation of the Republic of Uzbekistan on the privatization of land plots for non-agricultural purposes, then the rules of the international treaty are applied.

Article 3. General definitions

The following general definitions are applied in this Law:

free land plot – a non-agricultural land plot, which is in state ownership, on which buildings and structures are not located, not burdened with any obligations or prohibitions and not allocated to individuals and legal entities in accordance with the law;

state-owned real estate objects – property complexes (enterprises), buildings and structures, construction-in-progress objects that are in state ownership;

privatization of a land plot – the alienation of a non-agricultural land plot, which is in state ownership, into the ownership of citizens and (or) legal entities of the Republic of Uzbekistan;

electronic online auction – a method of conducting electronic trading in the form of an auction, in which non-agricultural land plots are sold on a specialized electronic trading platform on the Internet on the basis of equal access to the auction of potential buyers;

non-agricultural land plot (hereinafter referred to as the land plot) – a land plot not provided for the needs of agriculture or not intended for these purposes.

Article 4. Fundamental principles of land privatization

Fundamental principles of land privatization are:

legality;

voluntariness;

compensation;

integrity of privatized land plots and real estate objects located on them;

openness and transparency.

Article 5. The principle of legality

Privatization of land plots must be carried out strictly in accordance with the requirements of this Law and other legislative acts.

Article 6. The principle of voluntariness

Privatization of land plots is carried out on a voluntary basis.

Citizens and legal entities of the Republic of Uzbekistan exercise their rights to privatize land plots at their own discretion and in their own interests.

Coercion to privatize land plots is prohibited.

Article 7. The principle of compensation

Privatization of land plots is carried out on a paid basis.

Article 8. The principle of integrity of privatized land plots and real estate objects located on them

Privatization of land plots and state-owned real estate objects located on them is carried out simultaneously.

Article 9. The principle of openness and transparency.

The process of land privatization should be open and transparent.

State bodies and organizations are obliged to provide free access to information on the privatization of land plots in the ways established by the legislation on the openness of the activities of state authorities and administration.

Article 10. Privatization objects

Privatization objects are:

land plots granted to legal entities for the implementation of entrepreneurial, urban planning activities, and other activities not prohibited by legislation;

land plots provided to citizens of the Republic of Uzbekistan for individual housing construction and maintenance of a residential building, as well as the implementation of entrepreneurial and urban planning activities;

land plots on which state real estate objects subject to privatization are located;

free land plots.

Article 11. Urban planning requirements for the privatization of land plots

Privatization of land plots shall be carried out in accordance with master plans of settlements, detailed planning projects of parts of settlements, or other documents on comprehensive development and planning of territories, except for cases provided for in part two of this Article.

Land plots held by subjects of privatization on the right of permanent use (possession), lease or lifetime inheritable possession that arose before the entry into force of this Law, as well as land plots on which state-owned real estate objects subject to privatization are located, may be privatized before approval of town planning documents provided for by part one of this article, subject to the preservation of the main intended purpose of these land plots.

Article 12. Land plots not subject to privatization

Following land plots are not subject to privatization:

land plots where mineral deposits are located, except for common minerals, the reserves of which are not included in the state balance of mineral reserves;

land plots forming part of lands intended for nature protection, health improvement, recreational, and historical-cultural purposes, as well as lands of forest and water funds, lands for common use of cities and towns (squares, streets, lanes, roads, embankments, public gardens, parks, avenues, boulevards);

land plots where state property objects that are not subject to privatization in accordance with legislation are located;

land plots located in zones of use of territories where restrictions on the implementation of urban planning activities are established by legislation;

contaminated with hazardous substances and susceptible to biogenic contamination;

provided in the manner prescribed by law to participants in special economic zones – for the period of operation of the special economic zone;

on which apartment buildings are located, as well as land plots adjacent to apartment buildings;

land plots granted for the implementation of public-private partnership projects, agreements and contracts on social partnership, as well as land plots granted to legal entities for public needs.

When privatizing land plots, the right to limited use of another's land plot (servitude) may be established in the manner prescribed by civil law.

Article 13. Subjects of privatization

The subjects of privatization are citizens and legal entities of the Republic of Uzbekistan.

Foreign citizens, stateless persons, foreign legal entities, enterprises with foreign investment, as well as state bodies, institutions, enterprises, and self-governing bodies of citizens shall not be subjects of privatization.

Article 14. Forms of land privatization

Privatization of land plots is carried out in the following forms:

redemption by subjects of privatization of land plots that they have on the right of permanent use (possession), lease or lifetime inheritable possession;

purchase of land plots through an electronic online auction.

Article 15. Direction of funds received from the privatization of land plots

The funds received from the privatization of land plots, net of expenses, the list and amounts of which are established by the Cabinet of Ministers of the Republic of Uzbekistan, are sent to the State Budget of the Republic of Uzbekistan.

Chapter 2. State Administration in the Field of Land Privatization

Article 16. Powers of the Cabinet of Ministers of the Republic of Uzbekistan in the field of land privatization

Cabinet of Ministers of the Republic of Uzbekistan:

implements a unified state policy in the field of land privatization;

organizes the development, approval and publication of urban planning documentation on the planning and development of settlements and territories;

determines the procedure for the privatization of land plots through an electronic online auction;

determines the size of the redemption value of the privatized land plots, as well as the procedure for its payment;

approves the classifier of types of permitted use of land plots;

approves the Administrative Regulations for the provision of public services for the privatization of land plots.

Article 17. Powers of local government authorities in the field of land privatization

Local government authorities:

ensure the identification of free land plots and their putting up for an electronic online auction for the purpose of privatization;

ensure the targeted use of funds received from the privatization of land plots for the development of territories;

post on their official websites information about vacant land plots put up for an electronic online auction.

Article 18. Powers of the Cadastre Agency under the State Tax Committee of the Republic of Uzbekistan in the field of land privatization

Cadastre Agency under the State Tax Committee of the Republic of Uzbekistan:

determines free land plots for their subsequent privatization through an electronic online auction;

draws up maps of land plots;

determines the area and boundaries of the privatized land plots;

prepares materials on free land plots subject to privatization;

carries out state registration of ownership of land.

Article 19. Powers of the Agency for the Management of State Assets of the Republic of Uzbekistan in the field of land privatization

The State Assets Management Agency of the Republic of Uzbekistan provides:

identification of state real estate objects subject to privatization and their putting up for public sales together with the land plots on which the said objects are located in the manner prescribed by legislation;

issuance of a state warrant for the ownership of a land plot and maintenance of an appropriate register;

an open and transparent mechanism for the privatization of land plots through the auction organizer;

functioning of a specialized electronic trading platform in the World Wide Web and organization of electronic online auctions.

Article 20. Interaction of state bodies

State bodies interact by exchanging information and providing the necessary access to databases in the part related to the issues of land privatization.

Chapter 3. Privatization of Land Plots Owned by Subjects of Privatization on the Rights of Permanent Use (Possession), Lease or Lifetime Inheritable Possession

Article 21. The procedure for filing and considering an application for the privatization of land plots

An application for the privatization of land plots (hereinafter referred to as the application) is submitted:

by a legal entity of the Republic of Uzbekistan — in respect of land plots granted to it for the implementation of entrepreneurial, urban planning, and other activities not prohibited by legislation and belonging to it on the basis of the right of permanent use (possession) or lease;

a citizen of the Republic of Uzbekistan – in relation to land plots provided to him for individual housing construction and maintenance of a residential building, as well as for the implementation of entrepreneurial and urban planning activities and which he has on the right of lifetime inheritable possession, permanent use or lease.

Upon transfer to legal entities and individuals of the Republic of Uzbekistan, respectively, the right to permanent use (possession), lifetime inheritable possession or lease of a land plot, the right to privatize this land plot also passes to them.

If the land plot is jointly owned or used by several subjects of privatization, the application is submitted by agreement of all subjects, concluded in accordance with civil law, if such consent is not reached, in the manner established by the court.

The application is submitted through the centers of public services or the Unified portal of interactive public services of the Republic of Uzbekistan.

The list of documents attached to the application is determined by the Cabinet of Ministers of the Republic of Uzbekistan.

The application is the basis for considering the issue of privatization of the land plot.

Consideration of the application is carried out using an automated information system in accordance with the Administrative Regulations for the provision of public services for the privatization of land plots.

The result of consideration of the application is a notification, which may contain a positive or negative decision.

A notice with a positive decision is the basis for the applicant to pay the redemption value of the privatized land plot.

The notice with a negative decision indicates the justified reasons for the impossibility of privatizing the land plot with reference to the specific requirements of urban planning documents or legislative norms.

The results of consideration of the application may be appealed in court.

Article 22. Determination of the area and boundaries of the privatized land plot

Privatization of land plots held by the subjects of privatization on the right of permanent use (possession), lease or lifetime inheritable possession is carried out within the area and boundaries specified in the State Register of rights to real estate. Changing the area and boundaries of these land plots during their privatization is not allowed.

Article 23. Grounds for refusal to privatize land plots

The grounds for refusal to privatize land plots are:

lack of grounds for the privatization of land plots provided for in this Law;

presence of pending legal proceedings in respect of privatized land plots;

the presence of a ban or arrest imposed on real estate objects located on privatized land plots;

availability of information in the approved master plans of settlements, detailed planning projects of parts of settlements, and other documents on comprehensive development and construction of territories that directly prevents the privatization of land plots;

availability of decisions of the Jokargi Kenges of the Republic of Karakalpakstan, Kengashes of peopleʼs deputies of regions and the city of Tashkent, adopted prior to filing an application for the withdrawal of land plots for public needs;

the existence of a ban on the sale or other transfer of the land plot to be privatized to another person;

detection of false, contradictory or distorted information in the application;

non-fulfillment or incomplete fulfillment of payment of the redemption value of the land plot to be privatized within the period established by this Law.

Refusal to privatize land plots on other grounds is not allowed.

In the event that the reasons that served as the basis for the refusal to privatize land plots are eliminated, the applicant has the right to re-submit an application without paying a fee for the provision of public services within one month from the date of receipt of the refusal.

Article 24. Determination and payment of the redemption value of the privatized land plot

The redemption value of a privatized land plot, located at the subject of privatization on the right of permanent use (possession), lease or lifetime inheritable possession, is established by the Cabinet of Ministers of the Republic of Uzbekistan in multiples of the base rate of land tax from legal entities and individuals established for the relevant lands at the time of privatization.

When determining the amount of the redemption value of a privatized land plot, the Cabinet of Ministers of the Republic of Uzbekistan has the right to establish differentiated coefficients for certain categories of land plots, as well as subjects of privatization, including persons exempted from paying land tax.

Payment of the redemption value of the land plot to be privatized is carried out by the applicant within ten working days after receiving a notice with a positive decision.

Chapter 4. Privatization of Lnd Plots through an Electronic Online Auction

Article 25. Privatization of free land plots

Vacant land plots shall be identified in accordance with master plans of settlements, detailed planning projects of parts of settlements, and other documents on comprehensive development and construction of territories.

Free land plots are privatized through an electronic online auction.

Article 26. Privatization of land plots on which state-owned real estate objects are located

Land plots on which state real estate objects subject to privatization are located are determined by the State Assets Management Agency of the Republic of Uzbekistan in accordance with approved privatization programs.

Land plots on which state real estate objects subject to privatization are located shall be privatized together with the said real estate objects through an electronic online auction or other public sales.

Article 27. Application for participation in an electronic online auction for the privatization of land plots

An application for participation in an electronic online auction for the privatization of land plots is submitted:

by citizens and legal entities of the Republic of Uzbekistan — for the implementation of entrepreneurial, urban planning, and other activities not prohibited by legislation;

for individual housing construction and maintenance of a residential building – by citizens of the Republic of Uzbekistan.

Article 28. The cost of the privatized land

The cost of a privatized land plot is determined based on the results of an electronic online auction.

The starting price of a land plot put up for an electronic online auction is set based on its market value at the time it is put up for an electronic online auction.

The starting price of a land plot on which state real estate objects subject to privatization are located shall be determined taking into account the market value of the said real estate objects.

The size of the deposit and the price of the step are set as a percentage of the starting price and in monetary terms.

Chapter 5. Legal status of privatized land plots

Article 29. State warrant for the ownership of a land plot

The state warrant for the ownership of a land plot is a title document and is issued by the State Assets Management Agency of the Republic of Uzbekistan within one working day after the full and timely payment of the cost of the privatized land plot is made.

In case of privatization of a land plot simultaneously with a state-owned real estate object located on it, a single state order is issued for the ownership of the land plot and the real estate object.

No state fee is charged for the issuance of state warrants.

Article 30. The right of private ownership of a privatized land plot

Privatized land plots are private property and objects of civil circulation.

The right of private ownership of a privatized land plot arises from the moment of state registration of the right to it by entering the relevant information in the State Register of Rights to Real Estate in electronic form.

The right of private ownership of privatized land plots is inviolable and protected by the state in accordance with the law.

Article 31. Rights of owners of privatized land plots

Owners of privatized land plots have the right to:

freely own, use and dispose of a privatized land plot at oneʼs own discretion and in oneʼs own interests, including using it as a pledge, making a contribution to the authorized capital (authorized fund) of a legal entity, leasing it without violating the rights and protected by law the interests of legal entities and individuals, the state;

demand the elimination of any violations of the ownership of the privatized land plot;

manage independently on a privatized land plot;

erect residential, industrial, cultural and other buildings and structures, carry out their restructuring and demolition.

Article 32. Obligations of owners of privatized land plots

Owners of privatized land plots are obliged to:

comply with the requirements of regulatory documents in the field of technical regulation when using the land plot;

to compensate in accordance with the established procedure the damage caused to other owners of land plots.

Article 33. Emergence of ownership of land plots by persons who are not subjects of privatization

Foreign citizens, stateless persons, foreign legal entities, enterprises with foreign investments do not have the right to acquire privatized land plots, unless otherwise provided by law.

In the event that a foreign citizen, a stateless person, a foreign legal entity, an enterprise with foreign investment has the right to own land plots, these land plots are subject to alienation within six months from the date of such an event.

If the land plots are not alienated within the period provided for by part two of this article, the land plots shall become the property of the state, with the persons indicated by this article retaining the pre-emptive right to acquire them on lease in the manner prescribed by law.

Article 34. Termination of the right of ownership to a land plot being private property of legal entities and individuals

The right of ownership to a land plot being private property of legal entities and individuals shall be terminated in the following cases:

upon transfer of the right of ownership to the land plot, as well as to buildings, structures, or other real estate together with the land plot on which they are located, to another person in the manner prescribed by civil legislation;

upon repurchase of land plots, as well as buildings, structures, or other real estate together with the land plots on which they are located, for public needs;

upon confiscation of the land plot, as well as buildings, structures, or other real estate together with the land plots on which they are located, in cases established by law;

upon requisition of the land plot, buildings, structures, or other real estate together with the land plots on which they are located, in cases established by legislation;

when execution is levied against the land plot under execution documents.

Article 35. Determination of the value of a land plot being private property of legal entities and individuals upon which foreclosure is initiated

When foreclosure is initiated against a land plot being private property of legal entities and individuals for the obligations of the owner, the value of such land plot shall be determined in accordance with the law.

The value of a withdrawn land plot being private property of legal entities and individuals, as determined by an appraisal organization, may be disputed in court.

Article 36. Repurchase of a land plot being private property of legal entities and individuals for public needs

Repurchase of a land plot being private property of legal entities and individuals for public needs shall be carried out:

only upon obtaining the written consent of the owner of the land plot;

formalized by a sale and purchase agreement of the land plot concluded on equal terms on behalf of the owner of the land plot and, respectively, the Council of Ministers of the Republic of Karakalpakstan, khokims of regions and the city of Tashkent;

provided that the contractual value of the land plot is paid in advance by the state.

Repurchase of a land plot being private property of legal entities and individuals for public needs shall be allowed only for the following purposes:

needs of defense and state security, needs of protected natural areas, creation and functioning of free economic zones and free trade zones;

fulfillment of obligations arising from international treaties of the Republic of Uzbekistan;

discovery and extraction of mineral deposits (except for common minerals);

construction (reconstruction) of highways and railways of republican and local significance, airports, aerodromes, air navigation facilities and aviation centers, railway transport facilities, bridges, subways, tunnels, engineering facilities and networks of energy and communication systems, space activity facilities, trunk pipelines, engineering and communication networks, irrigation and land reclamation systems;

execution of parts of the approved master plans of settlements related to the construction of facilities at the expense of the State Budget of the Republic of Uzbekistan;

implementation of projects providing for the construction of buildings and structures of state educational, healthcare, cultural, and medical-social service institutions indicated in state investment programs at the expense of centralized investments.

Repurchase of land plots being private property of legal entities and individuals for public needs shall be carried out only after an open discussion of the contractual price and terms of repurchase with the owners of land plots, as well as after mandatory coordination with the Ministry of Finance of the Republic of Uzbekistan.

Costs related to the repurchase of a land plot being private property of legal entities and individuals shall be compensated from the following sources:

at the initiative of state administration bodies — from the centralized republican fund under the Cabinet of Ministers of the Republic of Uzbekistan for compensation of damages caused to individuals and legal entities in connection with the withdrawal of land plots for public needs;

at the initiative of the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of regions and the city of Tashkent — from the respective centralized territorial funds under the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of regions and the city of Tashkent for compensation of damages caused to individuals and legal entities in connection with the withdrawal of land plots for public needs.

Payment of the repurchase value of a land plot being private property of legal entities and individuals shall be made in full amount until the moment the right of ownership of the land plot is transferred to the state.

Disputes regarding the conclusion of a sale and purchase agreement for a land plot between the Council of Ministers of the Republic of Karakalpakstan, khokims of regions and the city of Tashkent and the owner of the land plot being private property shall be resolved in court.

Article 37. Requisition of a land plot being private property of legal entities and individuals

A land plot being private property of legal entities and individuals may be withdrawn from its owner in cases of natural disasters, accidents, epidemics, epizootics, and in other circumstances of an emergency nature in accordance with the decision of the Cabinet of Ministers of the Republic of Uzbekistan, provided that the damages caused to the owner of the land plot being private property are compensated and a document on requisition is issued to him.

Requisition of a land plot being private property of legal entities and individuals shall be carried out only for the purpose of protecting the rights and legitimate interests of citizens of the Republic of Uzbekistan, society, and the state from threats arising in connection with emergency situations.

Upon termination of the circumstances in connection with which the requisition was made, the former owner of the requisitioned land plot has the right to demand the return of the remaining property to him/her.

In the event of circumstances specified in part one of this Article, if there is no necessity for requisition of a land plot, the land plot may be occupied for temporary use during the period of validity of these circumstances, and the owner of the land plot shall be compensated for damages caused in connection with the temporary restriction of his/her rights.

In case of impossibility to return the temporarily occupied land plot, its owner shall be compensated for the market value of the said land plot and other damages caused in connection with the impossibility of returning the land plot.

An appraisal according to which the market value of the requisitioned land plot is reimbursed to the owner of the land plot, losses caused in connection with its requisition or temporary restriction of the rights of the owner of the land plot, may be challenged by him/her in court.

Article 38. Confiscation of a land plot being private property of legal entities and individuals

A land plot being private property of legal entities and individuals may be withdrawn (confiscated) from the owner based on a court decision in cases provided for by criminal procedural legislation.

Chapter 6. Final Provisions

Article 39. Resolution of Disputes

Disputes arising in the field of privatization of land plots are resolved in the manner prescribed by law.

Article 40. Responsibility for violation of legislation on privatization of non-agricultural land plots

Persons guilty of violating the legislation on the privatization of non-agricultural land plots are liable in the prescribed manner.

Article 41. Recognition as invalid of some legislative acts of the Republic of Uzbekistan

Recognize as invalid the following legislative documents:

1) Law No. LRU-552 of the Republic of Uzbekistan “On the privatization of land plots for non-agricultural purposes” dated August 13, 2019 (Bulletin of the chambers of the Oliy Majlis of the Republic of Uzbekistan, 2019, No. 8, Art. No. 463);

2) Article 272 of the Law No. LRU-683 of the Republic of Uzbekistan “On amendments and additions to certain legislative acts of the Republic of Uzbekistan” dated April 21, 2021 (Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 2021, Appendix No. 4);

3) Article 14 of the Law No. LRU-708 of the Republic of Uzbekistan On amendments and additions to some legislative acts of the Republic of Uzbekistan in connection with improving the procedure for providing land plots and their use, as well as the system of land registration and maintaining the state land cadastre ” dated August 16, 2021 (Bulletin of the chambers of the Oliy Majlis of the Republic of Uzbekistan, 2021, No. 8, Art. No. 800).

Article 42. Ensuring the execution, communication, clarification of the essence and meaning of this Law

The Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan and other interested organizations shall ensure the implementation, communication to the executors and clarification among the population of the essence and significance of this Law.

Article 43. Bringing legislation in line with this Law

Cabinet of Ministers of the Republic of Uzbekistan should:

bring government decisions in line with this Law;

ensure the revision and cancellation by the state administration bodies of their normative legal acts that are contrary to this Law.

Article 44. Entry into force of this Law

This Law shall enter into force on the day of its official publication.

President of the Republic of Uzbekistan SH. MIRZIYOYEV

Tashkent,

November 15, 2021,

No. LRU-728