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Sale of State Land to Accelerate
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The Act to Amend State Assets Act and Nature Conservation Act will accelerate transfer of state assets and specify application of pre-emptive right.
Toomas Hendrik Ilves, President of the Republic, proclaimed the Act to Amend State Assets Act and Nature Conservation Act, the entry into force of which will facilitate application of the pre-emptive right arising upon transfer of state assets, shorten the term of transfer operations and alleviate administrative load. At the same time, the adjacent neighbours and legitimate users of the land shall be ensured the possibility for acquisition of immovables at the auction price.
So far, adjacent neighbours have been able to use their pre-emptive right upon sale of state-owned immovables containing forest land parcels after successful arrangement of a dedicated auction and conclusion of a sale contract with its winner. After the amendment, adjacent neighbours willing to use their pre-emptive right must also take part in the auction.
“An adjacent neighbour that participated in the auction may also use the pre-emptive right if the neighbour did not win the auction, but purchasing of the immovable is possible only at the final auction price,” says Anne Toom, acting Director General of the Land Board. “If the neighbour agrees with this, a written application must be submitted to the organiser of the sale within five days after publication of auction results.”
If a sale contract is not concluded with the person having pre-emptive right during the established term, the right of the winner of the auction to acquire the immovable is restored.
On the same conditions, the pre-emptive right may be used by persons using state-owned immovables containing area under cultivation or natural grassland. If both an adjacent neighbour and the user wish to use their pre-emptive right with respect to the same immovable, the user is preferred.
Persons having pre-emptive right are informed about the auctions via official publication Ametlikud Teadaanded and at least one national daily newspaper.
Amendments to the Nature Conservation Act that entered into force in July this year allow owners of immovables containing protected natural objects to participate in sale of state land by auction and pay for the plots won at the auctions with their respective immovables, i.e. by way of set-off.
“However, the amendment that will soon enter into force also establishes a new term for submission of the set-off applications,” Toom noted. “An application for set-off must be submitted within five days after publication of the auction results. If the winner of a respective auction is willing to use the right of set-off, the adjacent neighbours shall not have pre-emptive right.”
The amendment also allows transfer or lending of state assets that are no longer necessary for the state without application of the State Assets Act, provided that a respective international agreement has been concluded between government delegations or other competent institutions.
Riigikogu adopted the Act to Amend State Assets Act and Environment Conservation Act on October 15th; it will enter into force on the 10th day after publication in the State Gazette.
Additional information:
Anne Toom, acting Director General of the Land Board, 675 0830
(30-10-2009)