Granting to citizens and legal entities of land plots from lands in state or municipal ownership, in accordance with Art. 29 of the Land Code of the Russian Federation (hereinafter referred to as the Land Code) is carried out on the basis of a decision of the executive bodies of state power or bodies of local self-government that have the right to provide the relevant land plots within their competence in accordance with Art. 9, 10 and 11 of the Land Code.
In according with paragraph 1 of Art. 621 of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code), the lessee who duly performed his duties after the expiration of the contract has other rights equal to the right of the other parties to conclude a lease for a new term, unless otherwise provided by law or lease agreement. The lessee is obliged to notify the lessor in writing of the desire to conclude such a contract within the time specified in the lease agreement, and if the contract does not specify such a period within a reasonable period of time before the contract expires.
Similar provisions contain clause 3 of Art. 22 of the Land Code, according to which, upon the expiration of the term of the lease agreement of the land plot, its lessee has the pre-emptive right to enter into a new lease of the land plot, with the exception of cases provided for in Cl. 35, item 1 of Art. 36 and art. 46 of the Land Code.
If the lessee continues to use the property after the expiration of the contract in the absence of objections from the lessor, by virtue of paragraph 2 of Art. 621 of the Civil Code, the contract is considered renewed on the same terms for an indefinite period. In this case, each of the parties has the right at any time to refuse the contract, warning the other party about it in one month, and when renting real estate - for three months (paragraph 2 of Article 610 of the Civil Code).
Meanwhile, Article 42 of the Land Code of the Russian Federation provides for the obligation of persons who have been granted a land plot to proceed to its use in a timely manner if the period for the development of the land plot is stipulated in the contract.
In accordance with clause 4 of part 2 of Article 46 of this Code, the ground for termination of the lease contract for a land plot intended for construction is its non-use for the specified purposes for three years unless a longer period is established by the Federal Law or the land lease contract.
However, by virtue of the provisions of Article 35 of the Land Code of the Russian Federation, unreasonable refusal to grant a land plot for construction purposes or to renew a lease contract is not allowed if the construction is not completed during the initial lease term of the land plot (this approach is set out in the decisions of the Presidium of the YOU RF from 18.09.2012 № 4464/2012; from 23.12.2008 № 8985/08), therefore, oblige the administration to conclude (extend) a new lease is possible in court (paragraph 4 of Article 445 of the Civil Code, Article 64 of the Land Code ), if available on the specified land plot of the unfinished construction project and properly perform their duties under the lease agreement by the lessee (making a lease payment, obtaining a building permit, constructing an object in accordance with the project).
Concerning the possibility of extending the lease contract solely at auctions, it is necessary to note the following: a lease contract for the land plot submitted for construction without a tender is subject to extension for a new period without bidding, if a construction permit has been issued, which, however, has not been completed within the initial lease term of the site (it is necessary to prove that there is an object of unfinished construction on the site and construction will continue on).