Under the agency contract one party (the agent) undertakes to perform for compensation on behalf of another party (the principal) legal and other actions on their behalf, but at the expense of the principal, or on behalf of and at the expense of the principal (Art. 1005 Civil Code). When transferring the land to the ownership of a contract for the sale, the buyer assumes the transfer (the developer) to the local budget the sum of money equivalent to the value of the land, specified in the contract. When making a lease contract developer (lessee) obtains the land for temporary possession and use, and shall pay to the local budget rent in the manner prescribed by the contract. VK: For developers provide tax benefits, deferral of land tax? EK: According to Vladimir Ponomarev, vice president of RSA, * the cost of building materials in the country declined by about 40%, while prices for land fell by 15-20%.
In this regard, he made the assumption that the cost of housing construction in 2009 could be reduced by approximately 20-25%. In turn, the president of RSA, Nikolai Koshman noted that at present the average construction cost per square meter ranges from 1.5 to 2 thousand dollars. Nikolai Koshman suggested that in these circumstances for developers who build social housing, it would be appropriate to provide tax relief and deferral of land tax by up to three years, but so far these benefits have not yet appeared. VK: Is it possible to "freeze" social projects, financed by the state agencies? EK: Absolutely.