The Supreme Court of the Russian Federation has recognized that a land tenant can recover unjust enrichment from the owner of a building located on the plot. However, given the lack of the right to sublease the plot, the compensation is equal to a portion of the rent proportional to the area occupied by the building, the Supreme Court ruled. Previously, there was no uniform approach, and courts often awarded amounts based on the market value of the rent, which could be higher than the tenant’s payment to the landowner.
Arina Dovzhenko, Partner and Head of the Real Estate and Construction Practice at Noridc Star, commented on the new regulations in an article for Kommersant.
Read more at the link.
Arina Dovzhenko
Partner