Municipalities will be able to transfer agricultural land with redemption rights

As from 1 January 2018, municipalities in which non-built agricultural land is owned may be transferred in leasing with the right of redemption for a period of up to 12 years for natural persons who do not belong to agricultural land. The lease fee for this type of lease is set at 4.51 TP1T from the cadastral value of the land. If the lessee of such land will use the redemption rights which can be used not earlier than in the fourth year of the contract, all the rent paid will be credited to the redemption price.
The municipality must take a decision on the agricultural land in its territory which will be offered in leasing with the right of purchase. This decision, which will also contain a list of land units to be transferred to the lease, will be published by the local government in accordance with the procedures laid down in the Law on Local Governments, on the website of the local government. It will indicate the area of the land to be leased, the period of lease, the redemption price, the time period for the applicants' application, which will not be less than 15 working days from the date of publication of the notice. A draft lease agreement will also be attached.
If several bidders have applied for a lease of the same agricultural land, the local government shall draw out the lottery.
As from the fourth year of the lease contract, the lessee will be entitled to redeem the leased agricultural land if he does not have a rent in debt and will not possess an agricultural land obtained on the basis of a lease with the right of purchase. The land redemption price will be determined in the amount of cadastral value of the land in the lease contract with the date of conclusion of the lease right.
At the time of purchase of leased agricultural land, the lessee shall comply with the conditions laid down in the Law on Land Privatisation in Rural Areas for persons who may acquire agricultural land.
The municipality of Rezekne is planning to identify the agricultural land that could be transferred to the lease with the right of purchase, to carry out cadastral surveying and recording in the Land Register. The initial list of land to be transferred to the municipality of Rezekne in the municipality of Rēzekne is planned to be approved and published on the website of the municipality in mid-year. The list will gradually be supplemented by those agricultural land that will comply with the conditions of leasing under the conditions of purchase, after their entry into the Land Register.
Juris Zavdrins,

Head of the Land Management Service
Photo - Eric rācenis (member of the photographer “Rēzekne autumn 2017”)