21.11.2007 Some Rules for Agricultural Land Privatization Changed

On October 26, this year, parliament of Georgia after the third reading paased the Law on Amendments and Addenda to the Law on State-owned Agricultural Land Privatization. According to the amendments certain rules of agricultural land privatization have been changed. Amendments came into force on November 16.

The new law specified category of water fund lands not subject to privatization. In particular, only the first zone (zone of strict regime) in sanitary protection area around water supply units shall not be subject to privatization. Amendments also provided that cattle transfer roots, lands of forest funds used for agricultural purposes and recreational lands may be privatized  if projects of particular importance are to be implemented on these lands. In this case Government of Georgia (GoG) shall take special decision on privatization of such lands.

 

Agricultural lands allotted for the reform fund in the Autonomous Republic of Adjara shall be also subject to privatization.

 

Form of direct sale based on competition has been added to privatization forms. President of Georgia is to take decision on direct sale. Leased and non-leased state owned lands, as well as formerly leased land parcels shall be subject to privatization under the direct sale based on competition. Price of the land, terms of payment and other conditions shall be defined by respective decision of the president.

 

As GoG representative  explains  president is to take decision on direct sale if the investors apply for land acquisition to implement particularly important projects. Respective ministries shall study and expertise proposals submitted by investors and  transfer experts’ conclusions to the GoG  for consideration. President shall take decision based on the conclusions of the respective experts, ministries and GoG.

 

According to the amendments procedures of leased land privatization has been simplified. In particular, number of documents necessary for privatization are diminished. Public registry extract and cadastral plan shall be sufficient for leased land parcel privatization. According to early version of the law, in case of legal dispute involving the leased land, privatization was impossible until final resolution of the dispute. According to the amendments this restriction has been abolished. The new law also provided that at the auctions it shall be possible to bid several parcels in one lot.

 

Territorial bodies of the Ministry of Economic Development shall be entitled to make amendments and addenda to the land lease agreements according established rules, as well as to cancel  lease agreement and complete procedure of agricultural land parcel lease.

 

Chapter 4 of the law providing for the rules of title registration and hypothecation has been abolished. Title registration and hypothecation shall be regulated by the Law of Georgia on Registration of Rights to Immovable Property.