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New fines for tenants of buildings

New fines for tenants of buildings

LEGAL DIGEST \ 19.08.2019

If a company does not have a permit for commissioning buildings, premises and other real estate facilities, it could face a million-rouble fine. The relevant changes came into force on 6 August 2019 and concern not only owners but also tenants of real estate.

When a lease agreement is concluded with respect to real estate, one should check that information must be recorded that the landlord holds ownership title to such facilities. Further, it is recommended that a copy of the certificate of ownership title and an explanatory note to the building’s architectural plan (a breakdown of premises) should be attached to the lease agreement. One should also check if the commissioning permit is available.

Court practice shows that the lack of a commissioning permit at the moment the facility is transferred to the tenant does not in itself imply that the lease agreement is invalid. Yet, if during the inspection of office buildings or production premises it is found out that no such permit is available, the persons at fault (both the tenant and the landlord) may face administrative liability as follows:

  • legal entities – a fine ranging from RUB 500,000 to RUB 1,000,000, or a suspension of business for up to 90 days;
  • a company’s officers – a fine ranging from RUB 20,000 to RUB 50,000; and
  • individual entrepreneurs – a fine from RUB 20,000 to RUB 50,000, or suspension of business for up to 90 days.

To avoid such losses, it is recommended that a copy of the commissioning permit should be requested from the landlord and attached to the lease agreement. If the tenant already has such document in its possession, it should be checked whether it is up to date (as, for example, if the building is being renovated, such permit will have to be replaced with a new one).

Please contact Acsour as to how a lease of buildings should be documented.