Land Reform Act

Link to law: https://www.riigiteataja.ee/en/eli/ee/Riigikogu/act/517062015010/consolide
Published: 2015-07-01

Land Reform Act

Passed 17.10.1991
RT 1991, 34, 426
Entry into force 01.11.1991
Amended by the following legal instruments (show)

Passed
Published
Entry into force

12.03.1992
RT 1992, 10, 145
12.03.1992

15.04.1993
RT I 1993, 20, 354
28.04.1993

27.10.1993
RT I 1993, 72, 1021
01.12.1993

07.12.1993
RT I 1993, 79, 1182
29.12.1993

09.02.1994
RT I 1994, 13, 231
05.03.1994

28.06.1994
RT I 1994, 51, 859
25.07.1994

09.11.1994
RT I 1994, 86, 1488
01.01.1995

14.12.1994
RT I 1994, 94, 1609
29.12.1994

consolidated text on paper RT
RT I 1995, 10, 113

30.04.1996
RT I 1996, 36, 738
07.06.1996

consolidated text on paper RT
RT I 1996, 41, 796

29.01.1997
RT I 1997, 13, 210
02.03.1997

24.04.1997
RT I 1997, 37, 570
26.05.1997

23.10.1997
RT I 1997, 81, 1363
30.11.1997, partially 01.01.1998

01.12.1997
RT I 1997, 93, 1556
03.01.1998

14.01.1998
RT I 1998, 12, 153
16.02.1998

16.11.1998
RT I 1998, 103, 1698
10.12.1998

17.02.1999
RT I 1999, 25, 366
22.03.1999

18.02.1999
RT I 1999, 27, 390
27.03.1999

28.10.1999
RT I 1999, 84, 765
16.11.1999

08.12.1999
RT I 1999, 95, 840
01.01.2000

13.06.2000
RT I 2000, 54, 347
16.07.2000

consolidated text on paper RT
RT I 2000, 70, 441

15.11.2000
RT I 2000, 88, 576
29.11.2000

06.03.2001
RT I 2001, 31, 171
29.03.2001

02.05.2001
RT I 2001, 48, 265
01.11.2001, partially 01.06.2001

consolidated text on paper RT
RT I 2001, 52, 304

14.11.2001
RT I 2001, 93, 565
01.02.2002

24.01.2002
RT I 2002, 11, 59
02.02.2002

15.05.2002
RT I 2002, 47, 297
01.01.2003

21.05.2002
RT I 2002, 47, 298
16.06.2002

13.11.2002
RT I 2002, 99, 579
01.01.2003

13.11.2002
RT I 2002, 100, 586
01.01.2003

12.02.2003
RT I 2003, 26, 155
15.03.2003 partially according to § 41

14.04.2004
RT I 2004, 30, 208
01.05.2004

21.04.2004
RT I 2004, 38, 258
10.05.2004

26.10.2005
RT I 2005, 61, 476
27.11.2005

26.01.2006
RT I 2006, 7, 40
04.02.2006

07.06.2006
RT I 2006, 30, 232
01.01.2007

19.06.2008
RT I 2008, 34, 211
01.08.2008

25.02.2009
RT I 2009, 18, 107
28.03.2009

14.05.2009
RT I 2009, 26, 162
06.06.2009

11.11.2009
RT I 2009, 57, 381
01.01.2010

09.12.2009
RT I 2009, 61, 404
17.12.2009

22.04.2010
RT I 2010, 22, 108
01.01.2011, enters into force on the date which has been determined in the Decision of the Council of the European Union regarding the abrogation of the derogation established in respect of the Republic of Estonia on the basis provided for in Article 140(2) of the Treaty on the Functioning of the European Union, Council Decision 2010/416/EU of 13 July 2010 (OJ L 196, 28.07.2010, p. 24–26).

17.06.2010
RT I 2010, 38, 231
01.07.2010

10.06.2010
RT I 2010, 41, 242
01.09.2010

27.02.2013
RT I, 15.03.2013, 26
20.03.2013

19.12.2013
RT I, 14.01.2014, 1
24.01.2014

19.06.2014
RT I, 29.06.2014, 109
01.07.2014, 01.07.2014, the titles of ministers replaced on the basis of subsection 107³ (4) of the Government of the Republic Act in the wording in force as of 1 July 2014.

18.02.2015
RT I, 23.03.2015, 3
01.07.2015

Part I GENERAL PROVISIONS 

§ 1.  Purposes of Act

The Land Reform Act determines the bases for restructuring relations regarding land (land reform).

§ 2.  Objective of land reform

Based on the continuity of rights of former owners and the interests of current land users that are protected by law, and to establish preconditions for more effective use of land, the objective of land reform is to transform relations based on state ownership of land into relations primarily based on private ownership of land.

§ 3.  Content of land reform

(1) In land reform, unlawfully expropriated land is returned to its former owners or their legal successors or they are compensated therefor, land is transferred for or without charge into the ownership of persons in private law, legal persons in public law or local governments, and land to be retained in state ownership is determined.
(2) In land reform, a right of superficies is constituted or a usufruct on the bases provided by this Act is established for the benefit of owners of construction works.
[RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 4.  Land reform as part of ownership reform

Land reform as part of ownership reform is carried out under the conditions of and pursuant to the procedure provided for in the Republic of Estonia Principles of Ownership Reform Act (hereinafter the Principles) and this Act. The Principles apply to land reform unless otherwise provided by this Act.

Part II RETURN OF AND COMPENSATION FOR LAND 

§ 5.  Persons who have right to claim return of or compensation for land (entitled subjects)

(1) The following have the right to claim return of or compensation for land:
1) natural persons whose land was unlawfully expropriated if they were citizens of the Republic of Estonia on 16 June 1940 or if they resided permanently in the territory of the Republic of Estonia on the date of entry into force of the Principles (20 June 1991);
2) natural persons who pursuant to § 8 of the Principles are successors of the persons specified in clause 1) of this subsection. If a former owner is deceased and no persons specified in § 8 of the Principles exist, the sisters and brothers of the former owner have the right to claim return of or compensation for land in equal shares, and their descendants, if their parent is dead (regardless of the date of death), have the right to claim return of or compensation for land in equal shares; they have the right to claim return of or compensation for the land to which their parent would have had the right;
3) organisations whose land was unlawfully expropriated, pursuant to § 9 of the Principles;
4) persons to whom the right of claim has been assigned or who have succeeded thereto pursuant to §§ 191 and 192 of this Act.
(2) Return of or compensation for land which the owners transferred after 16 June 1940 may be claimed pursuant to subsection (1) of this section by persons to whom the land was transferred or their legal successors.
(3) Issues relating to the return of and compensation for former ground rent land (obrok land) are regulated by a separate Act.

§ 6.  Return of land

(1) Land is returned according to its former boundaries unless otherwise provided by this Act, planning and land readjustment requirements or by agreement between adjacent neighbours who are entitled subjects. Land is returned on the basis of desk survey pursuant to the procedure established by the Government of the Republic. If this is not possible due to insufficient desk survey or if an entitled subject does not wish return on the basis of desk survey, a cadastral unit is surveyed. Based on planning and land readjustment requirements, the area of a plot of land to be returned may differ from the area of land subject to return by up to +/- 8 per cent but not more than 5 hectares. In such case and if land was returned according to its former boundaries but the area surveyed before the unlawful expropriation differs from the area determined upon the return of the land, additional compensation is not paid and the entitled subject is not required to make additional payment for the land. Upon return of land, reallotment or planning may be carried out pursuant to law, and the land shall be returned on the basis of the reallotment plan or the adopted detailed plan.
(2) Land is not returned in part or in whole if:
1) the entitled subject does not claim return of the land but wishes compensation therefor;
2) as set out in § 8 of this Act, the land was granted by law for perpetual use to another natural person pursuant to the Estonian SSR Farm Act (ENSV Teataja, 1989, 39, 611; RT I 1993, 72/73, 1021; 1994, 30, 465) by the date of passage of the Act, and the person with the right of use started to use the land for the intended purpose before 1 April 1996;
3) the buildings or civil engineering works which belong to another person, including buildings or civil engineering works of a gardening, cottage, residential building or garage association within a circular boundary of the association, are situated on land, and there is no agreement to constitute a right of superficies, establish a usufruct, subject land to a commercial lease or any other agreement in accordance with §§ 7, 9 and 10 of this Act;
4) the land is retained in state ownership pursuant to clauses 31 (1) 1)–5), 7), 9), 10) or 13) of this Act or is transferred into municipal ownership pursuant to clauses 28 (1) 1), 3) or 4) of this Act.
5) [repealed]
(3) For the purposes of this Act, a construction works is an integrated thing which is built as a result of human action and is attached to the site subsoil, also unfinished construction works and building permits issued pursuant to lawful procedure for erection of construction works. A construction works is a building or civil engineering works. A building is a construction works with interior space which is separated from the external environment by a roof and other exterior enclosures. A civil engineering works is a construction works which is not a building. The provisions concerning civil engineering works shall be applied with regard to plantations with plant breeding, scientific or cultural value, including dendrological parks and gardens. The list of such plantations shall be approved by the Government of the Republic. The provisions concerning civil engineering works also apply to the construction works and parks adjacent to former manor houses, if they have cultural value and have been declared cultural monuments on the bases and pursuant to the procedure provided by the Heritage Conservation Act.
[RT I, 23.03.2015, 3 - entry into force 01.07.2015]
(31) For the purposes of this Act, roads, utility networks and utility works which enable the intended use of land to be returned are not civil engineering works. Temporary construction works or civil engineering works and abandoned or dilapidated construction works which substantially damage the surroundings or scenery are also not deemed to be construction works. Such construction works shall be put into order or removed by the owner by the due date set by the local government. The term shall not be less than one year. Construction works which are not put into order or removed by the due date shall be expropriated on the basis of the provisions of clause 3 (1) 8) of the Immovables Expropriation Act. If a local government sets a due date to the owner of a construction work specified in the second sentence of this subsection by which the construction work is to be brought into order, land necessary for servicing the construction works is determined and the owner of the construction work has the right to privatise the land after bringing the construction work into order.
(32) For the purposes of this Act, a residential building is a building where at least 20 per cent of the total area of the building is prescribed for permanent residence and the rest for agricultural production or other specific purposes relating to the residential building. The provisions concerning residential buildings also apply to unfinished residential buildings which conform to the characteristics provided for buildings in subsection (1) of this section. The conformity of an unfinished construction works to the characteristics of residential buildings provided for in this subsection shall be determined on the basis of the building design documentation. Unfinished residential buildings which do not conform to the characteristics provided for buildings in subsection (1) of this section and building permits issued before 1 January 2003 pursuant to lawful procedure for erection of residential buildings are deemed to be other construction works in this Act.
[RT I, 23.03.2015, 3 - entry into force 01.07.2015]
(33) The land under a construction work and the smallest necessary and sufficient amount of land surrounding the construction work which is necessary to ensure purposeful and safe use, maintenance and physical preservation of the construction work shall be determined as land necessary for servicing the construction work (complex of construction works). If one and the same plot of land can be included in the land necessary for servicing several construction works, the plot shall be divided as equally as possible taking into account the area and value of the land and the land readjustment and other requirements. Determination of land necessary for servicing a construction work shall be based on the building design documentation prepared and approved pursuant to law, which justifies the need to construct extensions to the construction work or to construct another construction work connected with the construction work, if this does not damage the interests of the entitled subjects for the return of land. Determination of land necessary for servicing a construction work shall not be based on the boundaries valid during the period of unlawful expropriation of land units. The area and boundaries of land being transferred into municipal ownership shall be approved by the county governor or an authorised representative thereof.
(4) Land is returned in part only if this is in accordance with planning and land readjustment requirements and if:
1) return in whole is not possible on the bases provided for in clauses (2) 2)–4) of this section or in § 14;
2) an entitled subject applies for the return of up to 2 hectares of land adjacent to a construction work owned by the entitled subject;
3) an entitled subject does not wish the return of land which is situated within the boundaries of a protected area;
4) an entitled subject applies for the return of a detached plot of land.
[RT I 2006, 7, 40 - entry into force 04.02.2006]

§ 7.  Return of land within city boundaries

(1) Unlawfully expropriated land within city boundaries is not returned if the land is adjacent to a building or civil engineering work of another person as a lot or land necessary for servicing the building or civil engineering work, and if the entitled subject and the current owner of the construction work do not agree on the constitution of a right of superficies on the land for the benefit of the owner of the construction work, on the transfer of the construction work to the entitled subject or otherwise.
(2) An agreement concerning the constitution of a right of superficies on land shall be notarised and contain the obligation of the entitled subject to constitute a right of superficies for the benefit of the owner of the construction work upon return of the land. The agreement shall contain the essential terms of the right of superficies, including the charge for and the term of the right of superficies. The provisions of § 15 of the Law of Property Act Implementation Act otherwise apply to the constitution of a right of superficies. The co-owner of a construction work who is an entitled subject may agree on the constitution of a right of superficies held by the owner of the subsoil. In order to secure the constitution of a right of superficies, a notation shall be entered in the land register on the basis of a registration application of the local government.
[RT I 2010, 38, 231 - entry into force 01.07.2010]
(3) Upon agreement on transfer of a construction work, land is returned after transfer of the right of ownership in the construction work to the entitled subject. If a residential building is transferred on the condition of life-long support, the transferor has the right, after the land under the residential building is entered in the land register, to demand the establishment of a personal right of use in the residential building from the entitled subject. In order to secure the establishment of a personal right of use, a notation shall be entered in the land register on the basis of a notarised application of the transferor of the residential building.
(4) The provisions of this section apply in densely populated areas. For the purposes of this Act, densely populated areas are areas which are determined as densely populated areas by an adopted plan. In the absence of a comprehensive plan or if it is impossible to determine a densely populated area on the basis of a county plan, the areas deemed to be densely populated areas are those concerning which valid general plans of cities or towns, detailed plans, general plans for groups of enterprises, planning projects and building projects for rural settlements and other valid planning projects exist. In the absence of the plans specified above, the county governor shall determine densely populated areas on the proposal of the local government council.
(5) The local government shall determine the area and boundaries of land necessary for servicing a construction work in accordance with planning and land readjustment requirements pursuant to the procedure established by the Government of the Republic, as a rule without preparing a detailed plan. The local government may decide to determine the area and boundaries of land necessary for servicing a construction work by a detailed plan, which shall be prepared considering the extent of privatisation of land provided for in this Act.
(51) The whole of the land in the legitimate use of the owner of a residential building is deemed to be land necessary for servicing the residential building. Land use is deemed to be legitimate if:
1) the decision on the grant of land for use has been adopted by a competent body or official before the entry into force of the Principles, or
2) the use of land is proven by a receipt for payment of rent on land (land tax) or by other document issued before the entry into force of the Principles.
(52) Land necessary for servicing other construction works is determined if a lot has not been determined or if a change in the area or the boundaries of the lot is justified based on planning and land readjustment requirements.
(6) [Repealed - RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 8.  Return and division of land granted for perpetual use pursuant to Estonian SSR Farm Act

(1) Land which was lawfully granted for perpetual use as farm land pursuant to the Estonian SSR Farm Act is not subject to return except in the cases where the entitled subject and the head of the farm household agree otherwise or the use of land for the intended purpose is not commenced pursuant to clause 6 (2) 2) of this Act.
(2) A residential lot with an area of up to 2 hectares is returned to an entitled subject from farm land transferred to another person unless return of the residential lot is possible otherwise. The local government shall determine the area and boundaries of a residential lot according to planning and land readjustment requirements pursuant to the procedure established by the Government of the Republic.
(3) Up to 2 hectares of land may be separated from farm land, which the owner of a construction work has the right to privatise by a right of pre-emption pursuant to this Act, unless privatisation of the land is possible otherwise or unless otherwise agreed by the head of the farm household and the owner of the construction work.
(4) If the use for the intended purpose of land which was granted by law for perpetual use pursuant to the Estonian SSR Farm Act is not commenced before 1 April 1996, the termination of the right of use of land shall be decided by the county governor.

§ 9.  Return of land situated beyond city boundaries on which buildings of natural person are situated

(1) If a construction work which is in the ownership of another natural person is situated on unlawfully expropriated land situated beyond city boundaries, and if the entitled subject and the owner of the construction work do not agree on the constitution of a right of superficies for the benefit of the owner of the construction work or on transfer of the construction work to the entitled subject, the unlawfully expropriated land is not returned if such land is adjacent to:
1) a residential building, up to the extent of 2 hectares unless otherwise agreed by the entitled subject and the owner of the construction work;
2) a cottage or garden house, to the extent of the current unspecified term of use of the land but not more than 1 hectare unless otherwise agreed by the entitled subject and the owner of the construction work;
3) another construction work, to the extent of the land necessary for servicing the building.
(11) If residential buildings which are in the ownership of other natural persons and a residential building which is in the ownership of an entitled subject are situated on unlawfully expropriated land and unless the owners of the residential buildings and the entitled subject agree otherwise, the land shall be divided in as equal shares as possible between the owners and the entitled subjects.
(2) If the owner of a residential building situated on unlawfully expropriated land wishes to purchase more than 2 hectares of land and the entitled subject wishes return of the land and they do not reach an agreement within the term set by the local government, up to 50 hectares are privatised to the owner of the residential building out of vacant bordering land. If the owner of the residential building is able to privatise less than 20 hectares of land out of bordering land, the owner has the right to privatise additional land out of the registered immovable to be returned up to the deficiency to total 20 hectares, but not more than the land remaining to the entitled subject. If there is no vacant bordering land, the land is divided between the entitled subject and the owner of the residential building in as equal shares as possible and the owner of the residential building does not have the right to claim more than 20 hectares of land. If several residential buildings are situated on unlawfully expropriated land and the owners of the residential buildings wish to privatise more than 2 hectares of land, they may, in the case of non-existence or shortage of vacant land, privatise up to one-half of the land out of the unlawfully expropriated land but not more than 20 hectares in total. Upon privatisation of land pursuant to this subsection, the condition that a registered immovable is formed together with a residential building and the rights of other persons with a right of pre-emption are not violated thereby shall be taken into account.
(21) If construction works which constitute a single complex with a residential building situated beyond city boundaries are situated on the land of several former registered immovables to be returned, the land to be privatised by right of pre-emption together with the residential building is determined out of the land of the former registered immovable where the residential building is situated unless the owner of the residential building and the entitled subjects agree otherwise. From the other former registered immovable to be returned, land necessary for the normal use of the construction work which remains on the registered immovable shall be privatised to the owner of the residential building and land necessary for production is not included in such land. If a residential building is situated on the land of several former registered immovables to be returned, the land to be privatised by right of pre-emption together with the residential building is determined out of several former registered immovables in proportion to the area of the former immovables unless the owner of the residential building and the entitled subjects agree otherwise.
(3) [Repealed]
(4) [Repealed]
(5) [Repealed]
(6) [Repealed]
(7) Upon transfer of a construction work specified in subsection (1) of this section, the entitled subject has a right of pre-emption to the construction work except upon transfer of the construction work to descendants or to the ownership of a local government. The right of pre-emption of the entitled subject is valid until a decision not to return the land under the construction work is made. The right of pre-emption is not valid if the construction work to be transferred is not situated within the boundaries of one registered immovable.
(8) The owner of a construction work is required before transfer of the construction work to notify the entitled subject who has a right of pre-emption of the intention and terms of transfer in writing. If the entitled subject does not exercise the right of pre-emption within one month after the date of receipt of the written notice, the owner of the construction work has the right to transfer the construction work at least for the price and on the terms specified in the written notice. If the owner of a construction work transfers the construction work in violation of the right of pre-emption of an entitled subject, the entitled subject may within two months after the date of becoming aware of the violation file an action with a court for transfer of the rights and obligations of the acquirer to the entitled subject.
(9) The local government shall determine the area and boundaries of land which is not returned or is privatised with the right of pre-emption pursuant to this section, including land necessary for servicing a construction work, in accordance with planning and land readjustment requirements pursuant to the procedure established by the Government of the Republic. Land necessary for servicing a construction work is determined if the lot has not been determined or a change in the area of the lot is justified according to planning and land readjustment requirements. Land necessary for production is not included in land necessary for servicing a construction work.
(10) The provisions of subsections 7 (2) and (3) of this Act apply to agreements concerning the constitution of a right of superficies for the benefit of the owner of a construction work and concerning the transfer of a construction work as provided for in subsection (1) of this section.

§ 10.  Return of land situated beyond city boundaries on which buildings or civil engineering works belonging to state, local government or legal persons are situated

(1) The land situated beyond city boundaries under the buildings or civil engineering works belonging to the state, a local government or a legal person and the land necessary for servicing these buildings or civil engineering works is not returned unless the entitled subject and the current owner of the construction works agree on the constitution of a right of superficies for the owner of the construction work or on transfer of the construction work to the entitled subject. The provisions of subsections 7 (2) and (3) of this Act apply otherwise.
(2) Upon transfer of a construction work specified in subsection (1) of this section an entitled subject has a right of pre-emption to the construction work, except upon privatisation of the construction work or transfer thereof into the ownership of the local government. The right of pre-emption is valid upon transfer of a construction work pursuant to the Republic of Estonia Agricultural Reform Act, except upon municipalisation. The right of pre-emption of the entitled subject is valid until a decision not to return the land under the construction work is made. The right of pre-emption is not valid if the construction work to be transferred is not situated within the boundaries of one registered immovable. The provisions of subsection 9 (8) of this Act apply upon transfer of the construction work.
(3) The local government shall determine the area and boundaries of land necessary for servicing a construction work in accordance with planning and land readjustment requirements pursuant to the procedure established by the Government of the Republic. Land necessary for production is not included in land necessary for servicing a construction work.

§ 11.  [Repealed]

§ 12.  Return of land if construction work owned by entitled subject is situated on land

(1) If a construction work situated on land to be returned is in common ownership of several entitled subjects and the shares of common ownership in the construction work and the shares of the entitled subjects in the land to be returned are not equal, the lot situated within city boundaries or land in legitimate use and the land situated beyond city boundaries to the extent specified in subsection 9 (1) of this Act is returned into common ownership according to the share of common ownership in the construction work of each entitled subject. Land situated beyond city boundaries which has an area greater than that provided for in subsection 9 (1) of this Act is returned into common ownership as a separate registered immovable from the land adjacent to the construction work according to the shares of the entitled subjects in the land to be returned unless otherwise agreed by the entitled subjects by the time the formation of the cadastral unit is begun.
(11) An entitled subject to whom land was returned in a share larger than the entitled subject's share is required to pay a debt to the state for the share of land which exceeds the entitled subject's share. The debt is the amount of compensation that was paid or was subject to payment to other entitled subjects. The debt may be paid in money or privatisation vouchers. The debt may be paid in instalments under the conditions applicable to the privatisation of land to persons specified in subsection 223 (4) of this Act. Payment for land returned in a share exceeding the right of claim may be made in privatisation vouchers during the term provided by law. Payment of the debt shall be secured by a mortgage for the benefit of the Republic of Estonia. Contracts for the establishment of a mortgage and real right contracts shall be entered into by the local government in the name of the state, in notarised form. A contract for the establishment of a mortgage shall include a mandatory provision which prescribes an agreement of the parties on the liability of the actual owner of the registered immovable to be subject to immediate compulsory enforcement for the settlement of a claim for payment of the debt secured by the mortgage. The notary fee shall be paid by the entitled subject. The duties of the mortgagee with regard to the mortgage established for the benefit of the Republic of Estonia shall be performed by the county governor or a person authorised thereby.
(12) If a construction work situated on land to be returned is in the ownership of one entitled subject and there are several entitled subjects for the return of land, the lot situated within city boundaries or land in legitimate use and the land situated beyond city boundaries is returned to the owner of the construction work as land belonging to the construction work or necessary for servicing the construction work as a separate registered immovable according to the share of the entitled subject's right of claim in land to be returned. Land remaining after formation of a registered immovable from land situated beyond city boundaries and belonging to the construction work or necessary for servicing the construction work is returned as a separate registered immovable to the common ownership of other entitled subjects according to the shares of the entitled subjects' right of claim in land to be returned, unless otherwise agreed by them pursuant to the provisions of § 14 of this Act. If an entitled subject who is the owner of a construction work has the right to acquire as land necessary for servicing the construction work more land than land corresponding to the share of the entitled subject's right of claim, the entitled subject has the right to request the return of the land necessary for servicing the construction work which is situated within the boundaries of the former registered immovable in the part which is larger than the share of the right of claim and privatise the part of the land necessary for servicing the construction work which is beyond the boundaries of the former registered immovable under the same conditions as privatisation with the right of pre-emption without submitting a privatisation application separately.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(13) If a construction work which is situated beyond city boundaries and is owned by one entitled subject is situated on a detached plot of land of land to be returned and there are several entitled subjects for the return of land, land shall be returned to the owner of the construction work as a separate registered immovable from land to be returned as land belonging to or necessary for servicing the construction work according to the share of the right of claim thereof from such detached plot of land, or if the detached plot of land is smaller than the share of the right of claim in land to be returned, then to the extent of the detached plot of land. Land remaining after formation of a registered movable from land situated beyond city boundaries and belonging to the construction work or necessary for servicing the construction work is returned as a separate registered immovable to the common ownership of all the entitled subjects according to the shares of the entitled subjects' right of claim in land to be returned such that the total area of the registered immovable formed to the entitled person who is the owner of the construction work from land belonging to or necessary for servicing the construction work and land returned thereto in common ownership would correspond to the share of the right of claim thereof in land to be returned, unless otherwise agreed by the entitled persons pursuant to the provisions of § 14 of this Act.
(14) If a construction work situated on land to be returned is in common ownership of several entitled subjects and a co-owner has no desire or no right to acquire land, the co-owners desiring return of land have the right to request the return of land necessary for servicing the construction work in proportion to their shares in the construction work, unless otherwise agreed by the co-owners. If the co-owners desiring acquisition of land have no desire to be returned land necessary for servicing the construction work in the part which is larger than their share of the right of claim, the part of the land without a claim for return shall be retained in state ownership and a right of superficies shall be constituted on land necessary for servicing the construction work for the benefit of all co-owners.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(2) If a construction work in joint ownership of spouses is situated on land to be returned, the land is returned to the spouse who has the right to claim return of the land. Upon entry of the land to be returned in the land register, the other spouse shall be entered in the land register as a joint owner on the basis of a joint notarised application of the spouses. If the spouse to whom the land was returned refuses to submit a joint application, the other spouse has the right to demand his or her entry in the land register as a joint owner of the land necessary for servicing the construction work and division of the registered immovable.
[RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 121.  Return of land if temporary construction works or plantations belonging to other persons are situated on land

(1) For the purposes of this Act, a temporary construction work is:
1) a construction work which is temporarily attached to the ground and erected on the basis of legal use of land before the entry into force of this Act;
2) a construction work erected on the basis of a permit for use or extraction of mineral resource within the limits of a valid extracting area.
(11) For the purposes of this Act, dilapidated or abandoned temporary construction works are not deemed to be temporary construction works.
(2) For the purposes of this section, a plantation is a garden of permanent crops established for the growing of fruit or berries, or other plantations of permanent crops with an area of at least 0.25 hectares established on the basis of legal use of land before the entry into force of this Act and currently in order and in use as a plantation, except the plantations specified in subsection 6 (3) of this Act.
(3) If a temporary construction work or plantation belonging to another person is situated on land to be returned, the local government shall determine the area and boundaries of land necessary for servicing the construction work or plantation and shall set a term for the parties to reach an agreement. The parties have the right to agree on the constitution of a right of superficies or the establishment of a usufruct for the benefit of the owner of the temporary construction work or plantation, agree on the subjecting of land to a commercial lease, the assignment of the right of claim to the owner of the temporary construction work or plantation, the transfer of the construction work or plantation to the entitled subject, the removal of the temporary construction work or plantation, or agree on any other manner. The agreement shall be entered into in notarised form and submitted to the local government.
(4) If the entitled subject and the owner of a temporary construction work or plantation fail to reach an agreement by the set term, the land is returned and left in the use of the owner of the temporary construction work or plantation until the expiration of the term of a temporary right of use of land or of the permit for use or extraction of mineral resource. The owner of a temporary construction work or plantation erected on the basis of the right of use of land with an unspecified term has the use of land for up to ten years after a decision on return of land is made, however not for longer than until 1 January 2008. The right of ownership for the cadastral unit to be returned on which the plantation belonging to another person is situated shall be transferred upon the extinguishment of the right of use of land. The owner of the temporary construction work or plantation shall incur the costs related to the formalisation of leaving the land in the use of the owner, shall pay land tax on land left in the use of the owner and pay a fee to the person specified in the decision on return of land in an amount equal to land tax.
[RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 13.  Compensation for land

If land is not returned in part or in whole, the land shall be compensated for pursuant to the procedure provided for in the Land Valuation Act.

§ 14.  Return of land to several entitled subjects or compensation therefor

(1) If several entitled subjects claim the return of land, including a residential lot, the land is returned into their common ownership according to their shares, unless otherwise agreed by the entitled subjects. The local government shall set a term of one month to the entitled subjects for entry into the agreement. If the entitled subjects fail to enter into an agreement within the specified term, the land is returned into their common ownership. If the entitled subjects agree on the division of land, the land shall be returned according to the agreement of the entitled subjects, and the persons who apply for division of land shall bear the expenses relating to the division of land to be returned.
(2) Each entitled subject has the right to claim compensation for land according to the entitled subject's share.
(3) If an entitled subject wishes compensation for the entitled subject's share or the proceeding for the return has been terminated to the extent of the share of the right of claim of an entitled subject and other entitled subjects apply for return of their shares, the whole of the registered immovable is returned in proportion to the shares of the subjects who apply for the return of shares larger than their shares unless otherwise agreed by the entitled subjects. The local government shall set a term of one month to the entitled subjects for entry into the agreement. If the entitled subjects fail to enter into an agreement within the specified term, the land is returned into their common ownership. If the entitled subjects agree on the division of land, the land shall be returned according to the agreement of the entitled subjects, and the persons who apply for division of land shall bear the expenses relating to the division of land to be returned.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(4) If unlawfully expropriated land was in common ownership, the land corresponding to shares in common ownership is returned into common ownership of the entitled subjects according to their shares. If all entitled subjects of the shares in one common ownership do not apply for the return of land or the proceeding for the return of land has been terminated to the extent of the share of an entitled subject, the other entitled subjects of the shares in the same common ownership are entitled to claim return in the part which is larger than their share of the right of claim. If the persons specified in the previous sentence do not wish the return of land in the part which is larger than their share of the right of claim or if return of a share in common ownership is not applied for and the entitled subjects of other shares apply for the return thereof to themselves, the whole of the registered immovable is returned to their common ownership in proportion to the shares of the entitled subjects who apply for return of shares larger than their shares unless otherwise agreed by the entitled subjects. The local government shall set a term of one month to the entitled subjects for entry into the agreement. If the entitled subjects fail to enter into an agreement within the specified term, the land is returned into their common ownership. If the entitled subjects agree on the division of land, the land shall be returned according to the agreement of the entitled subjects, and the persons who apply for division of land shall bear the expenses relating to the division of land to be returned.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(5) An entitled subject to whom land was returned in a share larger than the entitled subject's right of claim is required to pay a debt to the state for the land exceeding the right of claim. The debt is the amount of compensation that was paid or was subject to payment to other entitled subjects. The debt may be paid in money or privatisation vouchers. Payment for land returned in a share exceeding the right of claim may be made in privatisation vouchers during the term provided by law. The debt may be paid in instalments under the conditions applicable to the privatisation of land to persons specified in subsection 223 (4) of this Act. Payment of the debt shall be secured by a mortgage for the benefit of the Republic of Estonia. Contracts for the establishment of a mortgage and real right contracts shall be entered into by the local government in the name of the state, in notarised form. A contract for the establishment of a mortgage shall contain a mandatory provision which prescribes an agreement of the parties on the liability of the actual owner of the registered immovable to be subject to immediate compulsory enforcement for the settlement of a claim for payment of the debt secured by the mortgage. The notary fee shall be paid by the entitled subject. The duties of the mortgagee with regard to the mortgage established for the benefit of the Republic of Estonia shall be performed by the county governor or a person authorised thereby.
[RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 141.  [Repealed]

§ 15.  Procedure for return of and compensation for land

(1) Return of and compensation for land shall be decided by the local government pursuant to the procedure established by the Government of the Republic.
(2) Land is returned at the expense of entitled subjects. Land is returned to the persons specified in clause 5 (1) 1) of this Act and their children and spouse at the expense of the state. Land is returned to the organisations specified in clause 5 (1) 3) of this Act at the expense of the state if land is returned on the basis of desk surveys.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(3) The county governors shall exercise supervision over organisation of the return of land.
(4) "Lists of Taxable Plots of Land", prepared by the Cadastre Board in 1938 and subsequent years, documentation of land registries and the documents specified in subsection 7 (4) of the Principles shall be used to prove a right of ownership in land. In regions where the documentation of the Cadastre Board and land registries do not reflect the situation after the completion of land readjustment (reallotment) procedures before 16 June 1940, the right of ownership in land may be proved on the basis of the land use plan prepared pursuant to the procedure which was in force before the unlawful expropriation of land.
§ 16. – § 19. [Repealed]

§ 191.  Assignment of right of claim for return of land

(1) An entitled subject may assign the right of claim for the return of land to:
1) his or her spouse and descendants, and to his or her brothers and sisters and their descendants;
2) a person who has been declared an entitled subject with regard to the same registered immovable;
3) a person who owns a construction work, temporary construction work or plantation that is situated on the unlawfully expropriated land the right of claim for the return of which is assigned;
4) the owner of a neighbouring registered immovable or the entitled subject for the return thereof;
5) Estonian citizens.
(2) The right of claim in a legal share may only be assigned to the owner of the construction work, temporary construction work or plantation which is situated on the land to be returned. If a right of claim belongs to several entitled subjects, each of them may assign their share of the right of claim.
(3) An agreement concerning assignment of a right of claim for the return of land shall be notarised. Assignment of the right of claim is binding on the organiser of the return if the agreement concerning assignment of the right of claim or a notarised copy thereof is filed with the organiser.
(4) A person who acquires a right of claim for the return of land shall pay the expenses relating to the return of land, except if the person is deemed to be the entitled subject with regard to the same registered immovable and the land is returned to him or her at the expense of the state, or if a person specified in the second sentence of subsection 15 (2) of this Act has assigned his or her right of claim to his or her spouse or child.
[RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 192.  Succession of right of claim

(1) [Repealed - RT I 2010, 41, 242 - entry into force 01.09.2010]
(2) [Repealed - RT I 2010, 41, 242 - entry into force 01.09.2010]
(3) [Repealed - RT I 2010, 41, 242 - entry into force 01.09.2010]
(4) If a person inherits a right of claim for return of land and the bequeather belongs to the group of people specified in the second sentence of subsection 15 (2) of this Act to whom land is to be returned at the expense of the state, also the person who inherited the right of claim has the right to be returned the land at the expense of the state.
[RT I 2005, 61, 476 - entry into force 27.11.2005]

Part III PRIVATISATION OF LAND AND ESTABLISHMENT OF USUFRUCT ON LAND  
[RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 20.  Land subject to privatisation and land subject to establishment of usufruct

(1) Land which is not returned on the basis of this Act, or which is not retained in state ownership or which is not transferred into municipal ownership, is subject to privatisation. If the retention of land in state ownership is applied for on the basis of clause 31 (1) 8) of this Act or the transfer of land into municipal ownership is applied for on the basis of subsection 28 (2) of this Act, a natural person who applies for the privatisation of the land with the right of pre-emption to the extent provided for in § 221 of this Act has the right of pre-emption to the land.
(11) The land specified in subsection 81 (2) of the Forest Act (hereinafter state forest land) is not privatised and a usufruct is not established on such land. The owner of a residential building situated on state forest land has the right to privatise land to the extent of up to 2 hectares, and the owner of other construction works has the right to privatise land to the extent necessary for servicing the construction work.
(12) Lands of strict nature reserves, special management zones or limited management zones of protected areas, special conservation areas, species protection sites, and land belonging to individual and other protected natural objects provided in the Nature Conservation Act, lands of Natura 2000 sites or other lands placed under temporary protection and lands of protected zones of monuments and heritage conservation areas provided in the Heritage Conservation Act are not privatised and a usufruct is not established on such land. The owner of a residential building situated on the land specified in the first sentence of this subsection has the right to privatise land to the extent of up to 2 hectares, and the owner of other construction works situated on such land has the right to privatise land to the extent necessary for servicing the construction work. As an exception, the manager of a protected area or the National Heritage Board may allow the privatisation of the lands of special conservation areas, special management zones and limited management zones of protected areas, species protection sites, and land belonging to individual and other protected natural objects, lands of Natura 2000 sites or other lands placed under temporary protection or lands of protected zones of monuments and heritage conservation areas up to the extent provided for in subsections 221 (1)–(22) of this Act or the establishment of usufruct thereon up to the extent provided for in subsection 233 (6) of this Act considering the established protection regime. The provisions of the previous sentence also apply to the privatisation of land specified in subsection 22 (12) of this Act, except in the cases where the immovable to which such land is sought to be joined is to be acquired by the state pursuant to § 20 of the Nature Conservation Act. Land exceptionally privatised pursuant to this subsection shall not be acquired by the state pursuant to the provisions of § 20 of the Nature Conservation Act. Corresponding entry shall be made in the land register and it is also mandatory upon transfer of the right of ownership.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(2) [Repealed]
(3) If due to land readjustment requirements or for reasons of construction technology the formation of an independent registered immovable together with a dwelling or non-residential premises located in a residential building and owned as movables is not possible or expedient, the owner of the dwelling or non-residential premises has the right to become the owner of the land on the bases and pursuant to the procedure provided for in the Privatisation of Dwellings Act.
[RT I 2006, 30, 232 - entry into force 01.01.2007]

§ 21.  Entitled subjects of privatisation of land and establishment of usufruct on land

(1) Estonian citizens and the persons specified in subsections (2)–(4) of this section are entitled subjects of the privatisation of land, subject to the restrictions arising from this Act.
(11) Natural persons and Estonian legal persons in private law who meet the conditions provided for in this Act are the entitled subjects of the establishment of a usufruct on land.
(2) An alien may privatise land granted to him or her for perpetual use pursuant to the Estonian SSR Farm Act, the land necessary for servicing a construction work owned by him or her and the land specified in subsection 22 (13) of this Act. For the purposes of this Act, an alien is a natural person who is not an Estonian citizen.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]
(3) A foreign legal person may privatise the land necessary for servicing a construction work owned by the foreign legal person and the land specified in subsection 22 (13) of this Act with the permission of the county governor. In such case, the branch of the foreign company must be entered in the commercial register of Estonia. A foreign state does not have the right to privatise land by a right of pre-emption.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]
(4) An Estonian legal person in private law may privatise land if the legal person is entered in the register maintained by the registrar of the commercial register of Estonia. A person operating pursuant to the Churches and Congregations Act, the Non-profit Associations Act or the Foundations Act who is entered in an appropriate register may privatise land for specific purposes in accordance with the activities specified in the articles of association of the person.
(5) The Government of the Republic shall establish a list of local governments and lands bordering on the state border, boundary bodies of water or the sea coast and other lands important to national security, where the permission of the county governor is required for the privatisation of land by an alien or an Estonian legal person in private law.
(6) Before granting permission, the county governor shall hear the opinion of the local government of the location of the land. Permission shall be granted if privatisation of land is not contrary to the public interest or security of the state and local government. If a local government is against granting permission but the county governor wishes to grant permission, the county governor shall forward the application to the Government of the Republic for decision. The grant or refusal of permission shall be decided within one month after submission of the application for permission or forwarding of the application to the Government of the Republic.
(7) Aliens, foreign states, foreign legal persons, local governments, legal persons in public law, and legal persons in private law of whose stocks or shares at least one-third belongs to the state or a local government shall not participate in the privatisation of land by auction.
[Subsection (8) enters into force on 01.05.2004, with the exception of the special conditions provided for in subsections (2) and (3) of section 41.]
(8) The rights prescribed in this Act for Estonian citizens and Estonian legal persons upon the privatisation of land and upon the establishment of a usufruct on land apply as appropriate to citizens of states which are Contracting Parties to the European Economic Area Agreement (hereinafter Contracting State) or legal persons of such states. Incentives prescribed for permanent residents of Estonia upon the privatisation of land apply to citizens of the Contracting States.
[RT I 2006, 7, 40 - entry into force 04.02.2006]

§ 22.  Methods of privatisation of land

(1) Persons who have been granted land for perpetual use pursuant to the Estonian SSR Farm Act or who have the right to purchase land as the owner of a construction work or a plantation pursuant to this Act taking into account the restrictions provided for in § 21 may privatise land by a right of pre-emption; residential building, apartment, garage, cottage or gardening associations may privatise by a right of pre-emption land which is in the common use of members of the association and which return is not applied for. An owner of a plantation specified in subsection 121 (2) of this Act may privatise by a right of pre-emption land under the plantation which remains vacant in the course of the return of land.
(11) Land concerning which a residential building, apartment, garage, cottage or gardening association has the right of use of land and which is commonly used by the members of such association and which is not determined as a lot belonging to a construction work in the ownership of a member of the association or as land necessary for servicing the construction work, is deemed to be land in the common use of the members of the residential building, apartment, garage, cottage or gardening association.
(12) The procedure for privatisation of land which cannot be used independently and is suitable for joining to an immovable shall be established by a regulation of the Government of the Republic.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(13) If it is not possible to form an immovable which can be used independently on land bordering on an immovable in private, municipal or state ownership (hereinafter land suitable for joining to immovable) and due to planning and land readjustment requirements it is expedient to join such land to the bordering immovable, the owner of the bordering immovable has the right to apply for the acquisition of the land for it to be joined to the immovable thereof. The acquisition of land suitable for joining to an immovable shall be conducted on the bases provided for in Part VI1 of this Act.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(2) Land, except agricultural land and forest land, subject to privatisation for which there are no privatisation applications by a right of pre-emption shall be privatised by closed auction if persons specified in subsection (4) of this section exist. A usufruct is established on agricultural land without claims for return or privatisation with a right of pre-emption (hereinafter vacant agricultural land) pursuant to § 233 of this Act. Taking into account the land readjustment requirements, other land use types of profit yielding land, including forest land to the extent provided for in subsection 233 (6) of this Act, may be included in a cadastral unit formed of vacant agricultural land. Forest land without claims for return or privatisation with a right of pre-emption, except forest land which, pursuant to the land readjustment requirements, is included in agricultural land on which a usufruct is to be established (hereinafter vacant forest land), shall be privatised pursuant to § 234 of this Act. Taking into account the land readjustment requirements, other land use types of profit yielding land may be included in a cadastral unit formed of vacant forest land to the extent provided for in the second sentence of subsection 234 (6) of this Act. Land, except forest land, subject to privatisation which is not privatised in the course of a closed auction or on which a usufruct is not established on the basis of § 233 of this Act shall be privatised by public auction.
(21) Land in high density areas concerning which no applications for privatisation with a right of pre-emption have been submitted shall be privatised by cadastral units.
[RT I, 23.03.2015, 3 - entry into force 01.07.2015]
(4) By closed auction:
1) a person to whom land in the administrative territory of the local government of the location of the land was not returned in part or in whole on the bases provided for in clauses 6 (2) 2)–4) of this Act and the local government has decided to compensate for the land in part or in full may purchase residential land or land not designated for a specific purpose;
2) a person to whom land situated in the reserve or special management zone of a protected area situated in the administrative territory of the local government of the location of land to be privatised was not returned or whose returned land is partially or entirely situated in a reserve or special management zone of a protected area located in the administrative territory of the local government of the land to be privatised may purchase agricultural, forest and residential land and land not designated for a specific purpose;
3) spouses who reside in the county of the location of land to be privatised and whose average age does not exceed 30 years, and families or individuals who raise and maintain at least three minors may purchase residential land;
4) a tenant living in a dwelling to be returned may purchase residential land in the county of the location of land to be privatised if the residential lease agreement was entered into before the entry into force of the Principles on 20 June 1991.
5) [repealed - RT I 2005, 61, 476 - entry into force 27.11.2005]
6) [repealed - RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 221.  Extent of privatisation of land

(1) Land may be privatised by a right of pre-emption to the extent provided for in §§ 7, 8, 9, 10 or 21 or subsections 20 (11) or (12) of this Act unless otherwise provided by this section.
(2) The owner of a residential building situated beyond city boundaries or the boundaries of a high density area who is an Estonian citizen has the right to privatise, by a right of pre-emption, up to 50 hectares of land which remains vacant in the course of the return of land or within the boundaries of the former registered immovable if it was larger than 50 hectares on the condition that a registered immovable is formed together with a residential building and the rights of other persons with a right of pre-emption are not violated thereby. The registered immovable may be comprised of cadastral units directly adjoining the cadastral unit under a residential building if an administrative boundary or a road belonging to another person, a brook or stream, the main ditch of a land improvement system or land under other utility networks or utility works is situated between them.
(21) A person operating pursuant to the Churches and Congregations Act, the Non-profit Associations Act or the Foundations Act who is entered in an appropriate register may privatise up to 75 hectares of land.
(22) A person engaged in agricultural production has the right to privatise by a right of pre-emption with the consent of the local government up to 50 hectares of agricultural land which remains vacant in the course of the return of land for a farm building (complex of buildings) which is situated beyond city boundaries or the boundaries of a high density area, belonging to the person and used for its intended purpose. Land privatised for a farm building (complex of buildings) used for its intended purpose may be comprised of cadastral units directly adjoining the cadastral unit under the building referred to in this sentence if an administrative boundary or a road belonging to another person, a brook or stream, the main ditch of a land improvement system or land under other utility networks or utility works is situated between them. If several persons apply for the return of the same plot of land by a right of pre-emption and an agreement is not reached between the persons within the term set by the local government, an auction shall be carried out among the applicants.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(3) One person may privatise up to 200 hectares of land in total by closed auction. The persons specified in subsection 22 (4) of this Act may acquire land by closed auction only once. One person may privatise a total of up to 300 hectares of agricultural land, up to 100 hectares of forest land and up to 3 hectares of land situated in cities and other settlements by public auction.
(4) If a construction work is in common ownership, the co-owners have the right to privatise land by a right of pre-emption to the extent and under the conditions provided for in subsections (1) and (2) of this section. Each co-owner has the right to privatise the legal share of the land corresponding to the share of the construction work in common ownership. The co-owners of a residential building situated beyond city boundaries may privatise, by a right of pre-emption, up to 50 hectares of land in total or within the boundaries of the former registered immovable if it was larger than 50 hectares. If the area of the land to be privatised exceeds 2 hectares, it shall be determined by agreement of the co-owners. Failing agreement, the land is privatised to the extent provided for in subsection 9 (1) of this Act.
(41) If a co-owner of a residential building situated beyond city boundaries does not wish to privatise, by a right of pre-emption, more than 2 hectares of land, the other co-owners have the right to privatise more land as separate cadastral units, considering the extent of land to be privatised by a right of pre-emption provided for in this section and other conditions.
(42) If a construction work is the joint property of spouses, the spouses have the right to privatise land to the extent provided for in subsections (2) and (22) of this section on the basis of a joint application. Unless the spouses submit a joint application, land is privatised to the spouse who is registered as the owner of the construction work. The other spouse shall be entered in the land register as a joint owner on the basis of a notarised joint application from the spouses.
(43) If a co-owner of a construction work does not wish to acquire land or has lost the right to privatise land by a right of pre-emption, a co-owner with the right to privatise has the right, during the term set by the organiser of privatisation, either to apply for the privatisation of land necessary for servicing the construction work and constitution of a right of superficies on such land for the benefit of all co-owners of the construction work or to demand the sale of the share of the construction work or the termination of common ownership pursuant to § 12 of the Law of Property Act Implementation Act. If a co-owner with the right to privatise land does not wish to privatise more land than land corresponding to the share of the co-owner in the construction work, the part of the land necessary for servicing the construction work without a claim for privatisation shall be retained in state ownership and a right of superficies shall be constituted on the land necessary for servicing the construction work for the benefit of all co-owners of the construction work.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(44) If a co-owner of a construction work has lost the right to privatise land during the proceeding for privatisation of land with a right of pre-emption and the cadastral unit formed for the purpose of privatisation is larger than the land necessary for servicing the construction work, a co-owner with the right to privatise has the right to privatise the land left over from the land necessary for servicing the construction work as a separate cadastral unit. If no co-owner of a construction work wishes to privatise land to the extent larger than the land necessary for servicing the construction work, the land left over from the land necessary for servicing the construction work shall be retained in state ownership. The county governor shall initiate the proceeding for retaining land in state ownership within two months after the day of making the decision on privatisation of land.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(5) If a co-owner of a construction work is an entitled subject for the return of land and return of land is applied for, the land is returned and privatised into common ownership corresponding to the legal shares of the co-owners in the construction work to the extent specified in subsection (1) of this section. If a co-owner of a construction work has failed to submit an application to privatise land with a right of pre-emption during the specified term, but expresses a wish to privatise land with a right of pre-emption during the performance of preliminary acts for return and privatisation by submitting a corresponding application to the rural municipality or city government, the land necessary for servicing the construction work shall be returned and privatised in proportion to the legal shares of the co-owners in the construction work. If a co-owner of a construction work does not wish to acquire land or has no right to acquire land, the other co-owners have the right to apply for the privatisation or return of the share of the land necessary for servicing the construction work corresponding to the co-owner's share in the common ownership in proportion to their legal shares in the construction work, unless the co-owners applying for the acquisition of land agree otherwise. The local government shall set a term of at least one month to the co-owners for entry into the agreement. If other co-owners do not wish to acquire more land than land corresponding to their legal shares in the construction work, the part of the land necessary for servicing the construction work without a claim for privatisation or return shall be retained in state ownership and a right of superficies shall be constituted for the benefit of all co-owners of the construction work.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(6) The local government shall determine the area and boundaries of land to be privatised in accordance with planning and land readjustment requirements pursuant to the procedure established by the Government of the Republic. Land necessary for servicing a construction work is determined if the lot has not been determined or a change in the area or the boundaries of the lot is justified according to planning and land readjustment requirements. The area and boundaries of land necessary for servicing a residential building situated in a high density area shall be determined on the bases provided for in subsections 7 (5) and (51) of this Act.
(7) Land located within the circular boundary of a gardening or cottage association to be privatised by a right of pre-emption to an owner of a cottage or garden house may consist of several detached plots of land.

§ 222.  Organiser of privatisation of land

(1) Privatisation of land shall be organised by the county governors. If upon the privatisation of state assets, any construction works on land to be privatised have been transferred by the Estonian Privatisation Agency or the construction works belong to a legal person whose stocks or shares were sold by the Estonian Privatisation Agency, then the Estonian Privatisation Agency shall organise the privatisation of such land until 1 November 2001 if the privatisation files concerning the land are submitted to the Agency by 1 June 2001; privatisation of the rest of the land shall be organised by the county governors of the location of the land. Upon privatisation of land, the local government shall perform the preliminary acts for privatisation provided by law and legislation based thereon.
(2) By agreement with the local government council, the county governor may authorise the local government to organise the privatisation of land by a right of pre-emption on behalf of the state.

§ 223.  Payment for land to be privatised

(1) The selling price of land to be privatised by a right of pre-emption is the assessed value of the land. Upon privatisation of land by a right of pre-emption on the basis of an application submitted before 1 January 2002, the selling price of land is the assessed value of the land in 1993 or the assessed value of the land in 1996 if the latter is lower than the assessed value of the land in 1993. The selling price of vacant forest land, agricultural land included in the cadastral unit of forest land, and of land not designated for a specific purpose, and the starting price of land to be privatised by auction is the assessed value of the land applicable at the time of submission of the application for privatisation of the land. Upon privatisation of forest land, the value of the standing crop is added to the selling price of the land or the starting price of the land to be privatised by auction.
(2) Upon privatisation of the lot of or land necessary for servicing a residential building, cottage or garden house, including land granted for the erection of a residential building, cottage or garden house, or land adjacent to a residential building beyond city boundaries by a right of pre-emption to a permanent Estonian resident, the selling price of the land to be privatised is multiplied by the factor 0.5 to the extent of up to 2 hectares of land. A person may privatise land adjacent to one residential building and to one cottage or garden house at the concessionary rate. Upon privatisation of agricultural land by a right of pre-emption to a sole proprietor entered in the commercial register who is engaged in agricultural production in the administrative territory of the local government of the location of the land to be privatised, the selling price of the land to be privatised is multiplied by the factor 0.5. If the person specified in the previous sentence privatises agricultural land together with a residential building and the total area of the land to be privatised is more than 2 hectares, then in order to determine the selling price of the land, the selling price of the agricultural land included in the land to be privatised shall be multiplied by the factor 0.5 and after that, the average selling price of one hectare of land is subtracted from the total selling price.
(3) Upon privatisation of land, a purchaser may pay up to one-half of the selling price in privatisation vouchers unless otherwise provided by subsections (4), (5), (6) and (61) of this section. Payment for land may be made in privatisation vouchers during the term provided by law.
(4) The total selling price may be paid in privatisation vouchers:
1) by a natural person for the lot of a residential building, cottage or garden house or the land necessary for servicing it to be privatised by a right of pre-emption, including the land granted for the construction of a residential building, cottage or garden house and the legal share for the land belonging to a residential building and agricultural land, forest land, land not designated for a specific purpose and land granted for perpetual use pursuant to the Estonian SSR Farm Act and also by the members of a gardening or cottage association for land in their common use;
2) by a person for land to be privatised by closed auction;
3) by a person for land to be privatised in development areas;
4) by a sole proprietor entered in the commercial register who is engaged in agricultural production in the administrative territory of the local government of the location of the land, or the Estonian legal person in private law entered in the commercial register whose main area of activity is agricultural production in the administrative territory of the local government of the location of the land for land to be privatised on the basis of subsection 221 (22) of this Act;
5) by apartment or housing associations for residential land to be privatised;
6) by a person for land adjacent to an agricultural production building.
(5) Natural persons who are not permanent residents of Estonia and legal persons of whose share capital or stock capital more than 50 per cent is held by aliens or foreign legal persons shall pay for land to be privatised in money and shall not pay in instalments. Upon privatisation of land, a natural person who is not a permanent resident of Estonia may pay for land to be privatised in privatisation vouchers to the extent of compensation paid to the natural person for unlawfully expropriated property.
(6) An obligated subject of the Republic of Estonia Re-nationalisation and Privatisation of Property of Co-operative, State Co-operative and Non-profit Associations Act and a legal successor of an obligated subject of the Republic of Estonia Agricultural Reform Act may in addition to the portion specified in subsection (3) of this section also pay the remainder of the selling price of land to be privatised by a right of pre-emption in privatisation vouchers to the extent of the amount accrued to the obligated subject or a company which belongs to the same group of companies as the obligated subject in the course of privatisation of dwelling.
(61) Organisation specified in clause 5 (1) 3) of this Act may in addition to the portion specified in subsection (3) of this section also pay the remainder of the selling price of land to be privatised by a right of pre-emption and by closed auction in privatisation vouchers to the extent of the compensation accrued to the organisation or an organisation which belongs to the same alliance or church as the organisation for unlawfully expropriated land.
(62) Persons specified in clause (4) 1) of this section may pay by advance payment in privatisation vouchers for land to be privatised before the formation of a cadastral unit pursuant to § 224 of this Act.
(7) Upon privatisation of land, a purchaser has the right to pay the selling price in instalments:
1) for up to 5 years if the selling price of the land is 1590 to 19,170 euros;
2) for up to 10 years if the selling price of the land is 19,171 to 319,550 euros;
3) for up to 15 years if the selling price of the land is more than 319,550 euros;
4) upon privatisation of land specified in subsection (4) of this section, for up to 50 years calculated such that the amount to be paid without interest is not less than 127 euros per year.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(8) At least 10 per cent of the purchase price shall be paid before entry into a contract of sale. Payment of a debt shall be secured by a mortgage. In the case of payment in instalments, the purchaser shall pay an interest of 10 per cent per year or in the case specified in subsection (4) of this section an interest of 5 per cent per year on the amount to be paid annually. Upon delay of payment, the purchaser shall pay a penalty for late payment of 0.05 per cent of the overdue amount for each day the payment is delayed. Interest and penalty for late payment shall be paid in money.
(9) The selling price of land being privatised or privatised by a person by a right of pre-emption or by closed auction or as vacant agricultural or forest land may be reduced or the redemption debt may be forgiven to the extent of 1600 euros per child born after 7 June 1996 of the landowner or of the person privatising the land, regardless of the time of entry into the contract of purchase and sale. If the unpaid amount of the selling price is less than 1600 euros or if the selling price has been paid up in full (also as an advanced payment), the persons specified in the previous sentence have the right to request the refund of the overpaid amount, regardless of the time of entry into the contract of purchase and sale of land. The Government of the Republic shall establish the procedure for application of incentives provided for in this subsection.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(10) The selling price of land being privatised or privatised by a right of pre-emption or by closed auction or as vacant agricultural or forest land by a natural person who raises and maintains at least four children of under 18 years of age may be reduced or the redemption debt may be forgiven to the extent of 1600 euros. A selling price may be reduced or a redemption debt may be forgiven if the contract of purchase and sale of land was entered into before 30 November 1997 and the landowner raised and maintained at least four children of under 18 years of age at such date. After 30 November 1997, a redemption debt of land may be forgiven or the selling price may be reduced if the landowner raised and maintained such children at the time of entry into the contract of purchase and sale of land or if a child born after entry into the contract of purchase and sale is also the fourth child under 18 years of age raised and maintained by him or her. If the unpaid amount of the selling price is less than 1600 euros or if the selling price has been paid up in full (also as an advance payment), the persons specified in this subsection have the right to request the refund of the overpaid amount. The Government of the Republic shall establish the procedure for application of incentives provided for in this subsection.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(11) If a person has the right to obtain incentives on the basis of both subsection (9) and (10) of this section upon payment for privatised land or land to be privatised, both incentives shall be applied.
(12) The overpaid amounts specified in subsections (9) and (10) of this section shall be refunded in privatisation vouchers. An application for refund of overpaid amount in privatisation vouchers shall be submitted to the organiser of privatisation no later than by 1 October 2006. After the end of the term of use of privatisation vouchers the overpaid amount shall be refunded in money.
[RT I 2006, 7, 40 - entry into force 04.02.2006]

§ 224.  Advance payment upon privatisation of land

(1) If a person with a right of pre-emption wishes to make an advance payment for the land being privatised, the person shall notify the local government of such wish in writing. The local government shall determine the area and price of the land to be privatised on the basis of the list of lands liable to taxation and issue a notice on advance payment to the applicant within ten working days. The selling price of land to be privatised, which is paid in advance, may be reduced in the cases and to the extent provided for in subsections 223 (9)–(11) of this Act. If the registered immovable includes more than 0.5 hectares of forest land, a valuation report on land and standing crop is required. In such case the local government shall issue the notice within ten working days after the receipt of the valuation report. The purchase price paid by advance payment shall be paid in whole.
(2) Upon entry into a contract of purchase and sale after the formation of a cadastral unit, the selling price of land being privatised is determined on the same bases which were valid at the time of making the advance payment.
(3) If the selling price specified in the contract of purchase and sale of land differs from the amount paid in advance by up to 8 per cent, the whole selling price of land is deemed to be paid.
(4) If the amount paid in advance is more than 8 per cent less than the selling price specified in the contract of purchase and sale of land, the person privatising the land shall pay the difference between the amount paid in advance and the selling price of the land specified in the contract of purchase and sale of land in money or privatisation vouchers on the conditions and within the term provided for in the contract of purchase and sale.
(5) The amount paid in advance shall not be refunded, except in the cases provided for in subsections 223 (9)–(11) of this Act and in the case where the person who made the advance payment cannot privatise the land by a right of pre-emption due to reasons beyond his or her control or where the amount of the advance payment has not been determined correctly. Advance payment is refunded in privatisation vouchers or money depending on the means of payment used upon the making of the payment in advance. After the end of the term of use of privatisation vouchers the advance payment made in privatisation vouchers shall be refunded in accordance with § 291 of the Privatisation Act.
(6) The advance payment made for land shall be transferred to the other person together with the transfer of the right of pre-emption to land.
(7) [Repealed]
(8) Advance payments for land to be privatised shall be made pursuant to the procedure established by the Government of the Republic.
[RT I 2006, 7, 40 - entry into force 04.02.2006]

§ 23.  Procedure for privatisation of land

(1) Land is privatised in accordance with planning and land readjustment requirements. In order to privatise land, a cadastral unit is formed on the basis of desk survey. If this is not possible due to deficient desk survey or if an entitled subject of privatisation does not wish to privatise land on the basis of desk survey, a cadastre unit is surveyed. For the purpose of privatisation of vacant forest land, a cadastral unit may be formed with the permission of the cadastral registrar on the basis of desk survey in the case the land to be privatised borders solely on cadastral units registered in the land cadastre which were formed by a survey (excluding geodetic survey by aerial photography).
(11) If a cadastral unit is formed by a survey for the purpose of privatisation of land and a person entitled to privatise land with a right pre-emption has received a proposal on the location of the borders of the land to be privatised with a right of pre-emption, the person entitled to privatise land is required to order cadastral unit formation works on the basis of such proposal from a person holding a corresponding licence within three months after receipt of the proposal and notify the local government of placing the order in writing within ten days. If formation of the cadastral unit cannot be completed due to the acts or omissions of the person entitled to privatise land, the rural municipality or city government shall set a term to the person entitled to privatise land for presentation of the cadastral unit formation file to the rural municipality or city government. If the person entitled to privatise land fails without good reason to place an order for formation of a cadastral unit within the specified term or fails to present the file by the set due date, the person loses the right to privatise land. In such case the land necessary for servicing the construction work is retained in state ownership and the right of superficies is constituted for the benefit of the owner of the construction work. If the organiser of privatisation makes a proposal to the person entitled to privatise vacant forest land to order cadastral unit formation works from a person holding a corresponding licence, the person entitled to privatise land is required to order cadastral unit formation works within three months after the making of such proposal. If the person entitled to privatise land fails without good reason to place an order for the performance of cadastral unit formation works within the specified term, the person loses the right to privatise land.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(2) Return of unlawfully expropriated land shall be decided after the area and boundaries of the land to be privatised by a right of pre-emption have been determined by an order of the rural municipality or city government. Privatisation of land in any other manner provided for in § 22 of this Act shall be commenced after return of or payment of compensation for unlawfully expropriated land has been decided.
(3) Acts necessary for the proceeding of privatisation of land with a right of pre-emption shall be performed within the term provided by law and regulation of the Government of the Republic.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(31) In the event of death of an owner of a construction work, the rural municipality or city government submits an application to a notary for commencement of succession proceedings if necessary. If a successor does not become evident within six months after the death of an owner of a construction work and there is no other person entitled to administer the estate, the rural municipality or city government submits an application to the court for application of estate management measures. The rural municipality or city government may also submit the application before the expiry of six months if good reasons exist. Expenses related to the submission of such applications shall be compensated for on the basis of expense receipts from the ownership reform reserve fund, except in the case where the local government itself is the successor.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(4) The organiser of privatisation shall decide the group of persons to be invited to a closed auction after considering the opinion of the local government.
(41) Upon privatisation of land on the basis of § 234 of this Act or upon privatisation of land by auction, land shall be privatised by formed cadastral units and not by sets thereof.
(42) Upon privatisation of land at a closed or public auction, the organiser of privatisation has the right to establish an auction participation fee the size of which shall not exceed 60 euros, and a deposit the size of which shall not exceed 10 per cent of the starting price of the land to be privatised by auction. The participation fee shall not be returned to the participants in the auction. A deposit shall not be returned to the winner of the auction if a contract of purchase and sale of the land is entered into with the winner, but it shall be taken into account upon payment of the selling price of the land. A deposit, including a reserved deposit, shall not be returned to a person who causes failure of an auction or approval of the results, or to the winner of the auction if the winner fails to enter into a contract for the purchase and sale of the land within three months as of the date of approval of the results of the auction without good reason.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(5) Land is privatised at the expense of the purchaser. The types of privatisation expenses and the bases for determining the expenses shall be established by the Government of the Republic. The organiser of privatisation enters into contracts of purchase and sale of land, real right contracts and contracts for the establishment of a mortgage in the name of the state. Upon privatisation of land, contracts of purchase and sale and real right contracts may be entered into in unattested written form. If land is privatised by payment in instalments, contracts of purchase and sale of land, real right contracts and contracts for the establishment of a mortgage shall be entered into in notarised form. The notary fee shall be paid by the purchaser. Contracts of purchase and sale of land, real right contracts and contracts for the establishment of a mortgage shall be entered into within three months as of the date of entry into force of the decision on privatisation of land or the date of approval of the results of the auction. The winner of a closed or public auction of land, the person entitled to privatise vacant agricultural land or vacant forest land or the person entitled to privatise land with a right of pre-emption who fails to enter into a contract of purchase and sale of land within the specified term without good reason loses the right to privatise land. In such case the land necessary for servicing the construction work is retained in state ownership and the right of superficies is constituted for the benefit of the owner of the construction work pursuant to the procedure established by the Government of the Republic.
(51) The mandatory requirements for entry into land sale contracts and contracts for the establishment of a mortgage are as follows, according to the circumstances:
1) confirmation of the purchaser that by privatising the corresponding plot of land the purchaser does not exceed the limits for privatisation of land provided for in this Act;
2) in the case of payment by instalments, an agreement of the parties which prescribes the obligation of the actual owner of the immovable to be subject to immediate compulsory enforcement for the satisfaction of the claim for payment of the redemption debt for the land secured by the mortgage. The corresponding entry shall be made in the land register;
3) the obligation of the purchaser to pay to a special account of the organiser of privatisation a sum of money equal to three times the difference between the legal selling price and the selling price documented in the contract of purchase and sale if after entry into the contract of purchase and sale it becomes known that the purchaser did not conform to the requirements for the forgiving of the redemption debt or for the reduction of the selling price;
4) the obligation of the purchaser to prevent a decrease in the value of the immovable encumbered with a mortgage and damaging the rights of the mortgagee in any other manner, and not to fell, without the permission of the mortgagee, standing crop on the land concerning which a mortgage is established for the benefit of the Republic of Estonia in order to secure the claims arising upon privatisation. Also an obligation to submit, in order to apply for permission, a forest management plan provided for in the Forest Act to the mortgagee or the authorised representative thereof;
5) a contractual penalty in the amount of at least 1270 euros for undue performance of the obligation specified in clause 4) of this subsection.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
6) [repealed]
7) [repealed]
(52) The purchaser is required to pay to a special account of the organiser of privatisation a sum of money equal to three times selling price if after entry into the contract of purchase and sale it becomes known that by privatising the corresponding plot of land the purchaser exceeded the limits for privatisation of land provided for in this Act.
(53) Upon privatisation of land, the duties of the mortgagee with regard to the mortgage established for the benefit of the Republic of Estonia are performed by the organiser of privatisation or a person authorised thereby. Upon the transfer of a registered immovable which was encumbered with a mortgage for the benefit of the Republic of Estonia upon privatisation or return of land, the mortgagee has the right to grant consent to transfer the redemption debt for the registered immovable to the acquirer of the registered immovable. The mortgagee has the right to refuse to grant the permission provided for in clause (51) 4) of this section if as a result of cutting, the value of the registered immovable would fall below 1.2 times of the value of the claim secured by the mortgage. Upon the establishment of a mortgage, no agreement shall be made concerning the invalidity of the demand provided for in subsection 332 (1) of the Law of Property Act. Upon a decrease in the value of the immovable encumbered with a mortgage below the value provided by law the mortgagee has the right to demand a supplementary security; also, the mortgagee has the right to encumber an immovable which was not the object of the privatisation proceeding with a mortgage to secure the fulfilment of a claim arisen upon privatisation.
(6) Land is privatised pursuant to the procedure established by the Government of the Republic.
[RT I 2006, 30, 232 - entry into force 01.01.2007]

§ 231.  [Repealed]

§ 232.  [Repealed - RT I 2002, 100, 586 - entry into force 01.01.2003]

§ 233.  Establishment of usufruct on vacant agricultural land

(1) Rural municipality governments shall ascertain the area of vacant agricultural land specified in subsection 22 (2) of this Act and, considering the requirements for effective use of land, for planning and land readjustment, shall delimit the plots of land on which a usufruct is to be established on a plan. Each delimited plot of land shall be registered and designated by a number on the plan. One copy of the prepared plan and the registration paper of the plots of land shall remain with the local government for public examination, the other copy shall be submitted to the county governor. The plan of the vacant agricultural land on which a usufruct is to be established and the registration paper of the plots of land shall be publicly displayed after obtaining the corresponding permission from the county governor. Notices regarding the place, commencement and duration of the public display of plans shall be published in a county newspaper or, in the absence thereof, in at least one national daily newspaper.
[RT I 2005, 61, 476 - entry into force 27.11.2005]
(11) A usufruct is established on vacant agricultural land for the benefit of an Estonian citizen or an Estonian legal person in private law who complies with the requirements provided for in subsection (2) of this section.
(2) In order to obtain usufruct rights on vacant agricultural land, a sole proprietor entered in the commercial register who is engaged in agricultural production in the administrative territory of the local government of the location of the land, or who is engaged agricultural production in the territory of the neighbouring local government and his or her land ownership borders on land on which a usufruct is to be established, or an Estonian legal person in private law entered in the commercial register whose main area of activity is agricultural production in the administrative territory of the local government of the location of the land shall submit an application to the local government, specifying the area of land and the number(s) of the plot(s) of land. For the purposes of this Act, a person engaging in agricultural production is a person who receives income from the sale of own-produced agricultural produce or agricultural products manufactured from such produce and who owns land necessary for production or has the right to use agricultural land. For the purposes of this Act, the right to use agricultural land is deemed to be the actual use of agricultural land on legal basis.
(3) Persons who comply with the requirements provided for in subsection (2) of this section may submit a single application with regard to all the applied plots of land, or submit a separate application concerning each plot of land. If applications for obtaining usufruct rights on vacant agricultural land are submitted by the persons who are co-owners of land necessary for agricultural production, each of them separately must comply with the requirements provided for in subsection (2) of this section and they have the right to obtain usufruct rights on vacant agricultural land in total within the limit provided for in subsection (6) of this section. If such persons engage in agricultural production in the administrative territory of several local governments, they have the right to submit applications for the establishment of a usufruct on vacant agricultural land to several local governments of the location of the land applied for. Applications may be submitted within one month after the end of the period for the public display of a plan specified in subsection (1) of this section, but no later than on 1 January 2010. Applications may also be submitted by registered mail. Rural municipality governments are required to register the applications.
[RT I 2009, 61, 404 - entry into force 17.12.2009]
(4) Rural municipality governments shall prepare a list of applicants for establishment of a usufruct on vacant agricultural land. The list (the number of a plot of land, area, the name or title of applicant, commercial registry code) shall be displayed in the local government for public examination. A notice regarding the place, commencement and duration of the public display of the list shall be published in a county newspaper or, in the absence thereof, in at least one national daily newspaper.
[RT I 2005, 61, 476 - entry into force 27.11.2005]
(5) Before approving a list of persons for whose benefit a usufruct on vacant agricultural land is established, a rural municipality council has the right to require an applicant to submit documents proving engagement in agricultural production. Interested persons may file complaints within ten days after the disclosure of the list. Rural municipality councils shall resolve the complaints of interested persons, approve lists and submit lists to the county governor. Persons who do not comply with the requirements provided for in this Act shall not be entered in the list approved by a rural municipality council.
(51) The rural municipality council shall approve the list of persons for whose benefit a usufruct on vacant agricultural land is established no later than on 1 May 2010. If the decision adopted before 1 May 2010 on approval of the list of persons for whose benefit a usufruct on vacant agricultural land is established has been revoked or declared unlawful by the court, the rural municipality council may adopt a decision on approval of the list in respect of the same agricultural land after 1 May 2010, but not later than three months after entry into force of the court decision.
[RT I 2009, 61, 404 - entry into force 17.12.2009]
(6) Pursuant to this section, a usufruct may be established for the benefit of one person on up to 250 hectares of vacant agricultural land which, taking into account the land readjustment requirements, may include up to 15 hectares of forest land. If, within the limits provided for in the first sentence of this subsection, there are not enough applications for all the plots of vacant agricultural land on which usufructs are to be established in the administrative territory of the local government, the rural municipality council may decide to establish a usufruct for the benefit of one person on more than 250 hectares of land by allowing all the applicants to submit additional applications. A usufruct on vacant agricultural land is established for the benefit of one person. If several persons wish to obtain usufruct rights for their benefit on the same plot of land and the persons fail to reach an agreement within the term specified by the local government, establishment of a usufruct on the land shall be decided by the county governor on proposal of the rural municipality council. The rural municipality council has the right to prefer an applicant who actually uses the same plot of land on legal basis or whose land ownership borders on the plot of land applied for, or a sole proprietor. If the county governor does not agree with a proposal of the rural municipality council or finds that a decision of the local government is unlawful, he or she shall return the proposal to the council for a new debate.
[RT I 2009, 18, 107 - entry into force 28.03.2009]
(61) A person with the right to obtain usufruct rights on vacant agricultural land who has applied for the usufruct rights on vacant agricultural land to an extent exceeding the limit provided for in subsection (6) of this section is required, immediately after becoming aware of having been entered in the list of persons for whose benefit a usufruct on vacant agricultural land is established to the extent of the limit provided for in subsection (6) of this section approved by a decision of a rural municipality council, to give written notice thereof to the rural municipality council and to decline to apply for a usufruct on vacant agricultural land which exceeds the limit. A rural municipality council is required to remove from the list of persons for whose benefit a usufruct on vacant agricultural land is established any persons who were entered in the list to an extent exceeding the limit provided for in subsection (6) of this section. Any transaction which is entered into for the establishment of a usufruct on vacant agricultural land to an extent exceeding the limit provided for in subsection (6) of this section is null and void.
[RT I 2005, 61, 476 - entry into force 27.11.2005]
(7) [Repealed - RT I 2005, 61, 476 - entry into force 27.11.2005]
(8) [Repealed - RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 234.  Privatisation of vacant forest land

(1) Rural municipality governments shall ascertain the area of vacant forest land specified in subsection 22 (2) of this Act and, taking into consideration the requirements for effective use of land, and planning and land readjustment, shall delimit the plots of land to be privatised on a plan. Each delimited plot of land shall be registered and designated by a number on the plan. One copy of the prepared plan and the registration paper of the plots of land shall be retained by the local government for public examination and another copy shall be submitted to the county governor not later than by 1 September 2003. The county governor shall make a decision on the grant of or refusal to grant permission within one month as of the receipt of the documents. The plan of the vacant forest land to be privatised and the registration paper of the plots of land shall be displayed publicly for one month after corresponding permission is obtained from the county governor. A notice on the place, commencement and duration of the public display of the plan shall be published in a county newspaper.
(2) Estonian citizens are the entitled subjects of privatisation of vacant forest land. A sole proprietor entered in the commercial register who is engaged in agricultural production within the meaning of subsection 233 (2) of this Act or forest management in the administrative territory of the local government of the location of the land may submit an application to the local government for the privatisation of vacant forest land. For the purposes of this Act, a person engaged in forest management is a person who owns forest land with standing crop in the territory of the local government of the location of the land and who has carried out the improvement work as defined in the Forest Act in the forest or commenced compliance with the obligation of reforestation provided for in the same Act.
(3) A person who complies with the requirements provided for in subsection (2) of this section may submit either a single application with regard to all plots of forest land of which privatisation is applied for or a separate application concerning each plot of forest land. Persons may submit a joint application for the privatisation of vacant forest land into common ownership. Each co-owner separately shall comply with the requirements provided for in subsection (2) of this section. Co-owners have the right to privatise forest land in total within the limit provided for in subsection (6) of this section. If such persons engage in forest management in the administrative territory of several local governments, they have the right to submit applications for the privatisation of vacant forest land to the local governments of the location of the land applied for. Applications may be submitted within one month after the end of the public display specified in subsection (1) of this section. Applications may also be submitted by registered mail. Rural municipality governments are required to register the applications.
(4) Rural municipality governments shall prepare a list of applicants for privatisation of vacant forest land. The list (the number of a plot of land and area, the name of applicant, commercial registry code, content of application) shall be displayed in the local government for public examination. A notice on the place, commencement and duration of the public display of the list shall be published in a county newspaper. The list shall be displayed publicly for ten calendar days.
(5) Interested persons may file complaints within ten days as of the disclosure of the list. Complaints filed by interested persons shall be resolved by the rural municipality council.
(6) One person may privatise up to 20 hectares of vacant forest land on the basis of this section. The area of land to be privatised may be up to 10 hectares larger due to the land readjustment requirements. If several persons apply for the privatisation of one plot of land and they fail to reach an agreement within the term specified by the local government, the local government council shall prefer the owner of a neighbouring registered immovable, thereafter a person engaging in agricultural production and thereafter the applicant who owns the least forest land.
(7) A rural municipality council shall approve the list of the persons privatising forest land no later than on 1 April 2004. A person is deemed to have the right to privatise vacant forest land as of the date on which the list is approved by the rural municipality council. The following persons shall not be entered in the list approved by a rural municipality council:
1) persons who, during the past ten years, have transferred forest land which was in their ownership, with the exception of transfer to their spouse, descendants or parents or if the forest land was sold and purchased to ensure the integrity and expedient use of the forest land;
2) persons who have not sufficiently regenerated the forest land in their ownership or have not improved it within the meaning of the Forest Act;
3) persons who own more than 100 ha of forest land.
(8) A person with the right to privatise vacant forest land who has applied for the privatisation of land to an extent exceeding the limit provided for in subsection (6) of this section is required, immediately after becoming aware of having been entered in the list approved by a decision of a rural municipality council to the extent of the limit provided for in subsection (6) of this section, to give written notice thereof to the rural municipality council and to decline to privatise such land as exceeds the limit. A rural municipality council is required to remove from the list any persons who were entered in the list to an extent exceeding the limit provided for in subsection (6) of this section. Any transaction which is entered into for the privatisation of land to an extent exceeding the limit provided for in subsection (6) of this section is null and void.
(9) A person who has privatised forest land on the basis of this section shall not transfer such forest land before full payment of the redemption price and in any case not before five years have passed since the contract of purchase and sale was entered into, with the exception of transfer to a spouse, descendants or parents, and the person shall not establish a usufruct on such land within ten years as of entry into the contract of sale. Corresponding entries shall be made in the land register and they are also mandatory upon transfer of the right of ownership.
[RT I 2006, 30, 232 - entry into force 01.01.2007]

§ 24.  [Repealed]

Part IV MUNICIPAL LAND 

§ 25.  Transfer of land into municipal ownership

(1) Land specified in § 28 of this Act is transferred into municipal ownership without charge.
(2) Local government may use land transferred into municipal ownership only for the intended use and purpose indicated in the decision on transfer of land into municipal ownership.
(3) Local government may change the intended use of the land which is intended for use as public land and is transferred into municipal ownership, transfer such land, encumber with a usufruct or right of superficies only with the permission of the minister responsible for the area if the land was obtained by a decision of the county governor and only with the permission of the Government of the Republic if the land was obtained by a decision of the Government of the Republic. Permission is granted on the basis of a motivated application of the local government.
(4) Local government shall transfer 65% of the money received from the transfer of the land transferred into municipal ownership, except for the land specified in clauses 28 (1) 1), 9) and 11) of this Act, from the establishment of a usufruct thereon or encumbering thereof with the right of superficies, and, in the event of transferring land without charge or for a price lower than the usual value, of the usual value of the land at the moment of transfer after the deduction of the justified expenses made by the local government for the improvement of the transferred land or land encumbered with a usufruct or right of superficies, including for the preparation of the detailed plan, to the ownership reform reserve fund of the Government of the Republic within three months as of the day following the day of receiving the money. The obligation provided for in this subsection is valid for 10 years as of the transfer of land into municipal ownership.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(41) In the event of the obligation provided for in subsection (4) of this section, the notary shall present a certified copy of the transaction to the Land Board at the expense of the transferror within three days after notarising the transfer of an immovable, establishment of a usufruct thereon or encumbering thereof with the right of superficies. The local government shall present the information concerning the income and expenses related to the land unit which is the object of the transaction specified in the previous sentence to the Land Board within ten working days after the day of notarisation of the transaction.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(42) A list of the information provided for in subsection (41) of this section to be presented by the local government shall be established by a regulation of the Government of the Republic.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(5) If cadastral units are formed for land under bodies of water retained in municipal ownership, unimproved public land or land necessary for servicing roads, streets and railways in municipal ownership, a boundary report shall not be prepared.
(6) The persons deciding on the transfer of land into municipal ownership shall be determined, and the procedure for the transfer of land into municipal ownership and the procedure for the use of money received in the state budget from the transfer of municipal land, establishment of a usufruct thereon and encumbrance thereof with the right of superficies shall be established, by the Government of the Republic.
[RT I 2005, 61, 476 - entry into force 27.11.2005]
§ 26. – § 27. [Repealed]

§ 28.  Land to be transferred into municipal ownership

(1) The following shall be transferred into municipal ownership:
1) land under buildings and civil engineering works in municipal ownership and the land for servicing them;
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
2) [repealed]
3) land under bodies of water retained in municipal ownership;
4) public land;
5) agricultural land of a private limited company where the only share belongs to a local government or of a public limited company where all the shares belong to a local government, and agricultural land necessary for the performance of the duties of an agency administered by a local government;
6) [repealed]
7) land which was in the ownership of a local government on 16 June 1940 and is situated in the administrative territory of the local government currently applying for municipalisation, except land which is subject to retention in state ownership pursuant to § 31 of this Act or to privatisation by a right of pre-emption pursuant to § 7, 8, 9 or 10 of this Act or which is subject to transfer into ownership pursuant to the Transfer into Ownership of and Compensation for Former Ground Rent Land (Obrok Land) Act;
8) common land which was in the ownership of a village community on 16 June 1940, except land which is subject to return or privatisation by a right of pre-emption to the extent provided for in §§ 6–10 of this Act.
9) land necessary for servicing auxiliary buildings erected before 1 January 2003 which are in use but without documents proving ownership, including sheds in common use, garages and other such buildings, except land which is subject to retention in state ownership pursuant to § 31 of this Act;
[RT I, 23.03.2015, 3 - entry into force 01.07.2015]
10) land specified in subsection 312 (1) of this Act bordering on land in municipal ownership;
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
11) in the case specified in subsection 213 (1) of the Privatisation of Dwellings Act, land necessary for servicing a construction work which is transferred to persons owning the dwellings as movables or whereon the right of superficies is constituted;
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
12) land necessary for servicing a construction work in the ownership of a company where all the shares belong to a local government provided that a preliminary contract on the constitution of the right of superficies is entered into for the benefit of the owner of the construction work before deciding on transfer of the land into municipal ownership.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(2) Land which is not specified in subsection (1) of this section but which is necessary for performance of the functions and development of the local government may also be transferred into municipal ownership.

Part V STATE LAND 

§ 29.  Retention of land in state ownership

Land specified in subsection 31 (1) of this Act is retained in state ownership by a resolution of the Government of the Republic or of a government agency authorised by the Government of the Republic. The procedure for retention of land in state ownership and the bases for designation of administrators of state land shall be established and the authorised government agencies shall be specified by the Government of the Republic. The area and boundaries of land retained in state ownership is determined in compliance with planning and land readjustment requirements without preparing a detailed plan.

§ 30.  [Repealed]

§ 31.  Land to be retained in state ownership

(1) The following shall be retained in state ownership:
1) land under buildings and civil engineering works retained in state ownership and the land for servicing them;
2) land under state protection and land adjacent to objects under state protection if the established protection regime makes it impossible for another person to use the land;
3) land under bodies of water retained in state ownership;
4) public land;
5) national defence land;
6) state forest land;
7) agricultural land of state companies and state agencies;
8) state land reserves;
9) land of deposits of national significance within the limits of the existing extracting permit area, except land recultivated pursuant to the established procedure and the return of which is applied for;
10) land necessary for servicing the construction work of another person on which a right of superficies is constituted;
11) [repealed]
12) land on which a usufruct is established pursuant to § 341 of this Act;
13) land which is granted into the ownership, possession or use by a foreign country or which is subject to a written agreement concerning transfer, entered into by government delegations;
14) land specified in subsection 312 (1) of this Act bordering on land in state ownership;
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(2) Land which is not returned, privatised or transferred into municipal ownership or which is not retained in state ownership pursuant to subsection (1) of this section is also in state ownership.
(3) Land retained in state ownership is transferred pursuant to the procedure provided for in the State Assets Act unless otherwise provided by law.

Part VI (Repealed) 

§ 311.  [Repealed]

Part VI1CARRYING OUT LAND REFORM ON LAND WHERE IT IS NOT POSSIBLE TO FORM IMMOVABLE WHICH CAN BE USED INDEPENDENTLY  
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]

§ 312.  Land suitable for joining to immovable

(1) Land suitable for joining to an immovable is deemed to be a plot of land which is as a rule with a shape of a strip, wedge or other irregular shape or which due to its smallness cannot be used independently, to which there is as a rule no access from public road and which has been created in nature as a rule in the course or in consequence of carrying out land reform mostly due to errors caused by different desk surveys or different surveys used at different times. A plot of land between an immovable and a public road in the ownership or possession of another person and an immovable may also deemed to be land suitable for joining to an immovable if it is not expedient in the opinion of the owner or possessor of the road to include it in the road area.
(2) A plot of land which is subject to privatisation on another basis provided by this Act, subject to return or to be transferred into municipal ownership as an independently used plot of land or to be retained in state ownership is not deemed to be land suitable for joining to an immovable.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]

§ 313.  Acquisition of land suitable for joining to immovable

(1) The proceeding for the acquisition of land suitable for joining to an immovable begins by the submission of an application by the owner of the bordering immovable or by the initiation of the proceeding by the rural municipality or city government.
(2) The rural municipality or city government shall perform the preliminary acts for transfer of ownership of land suitable for joining to an immovable, in the course of which it will determine the land suitable for joining to an immovable and prepare the layout of the land unit by marking the borders of the land on the printout of the cadastral map, which clearly shows the borders and cadastral codes of the bordering immovables. The rural municipality or city government shall determine whether any applications concerning the land suitable for joining to an immovable have been submitted for the return of land or for privatisation with a right of pre-emption or whether an application for retaining the land in state ownership has been submitted or whether the administrator of state assets of a bordering immovable is interested in retaining the specified land in state ownership or whether the local government intends to apply for transfer of the land into municipal ownership, and shall forward the documents collected in the course of the preliminary acts to the county governor for deciding on the grant of a permission.
(3) The ownership of land suitable for joining to an immovable shall be transferred with the permission of the county governor. Upon deciding on the grant of a permission, the county governor shall verify the conformity of the land unit to the provisions of § 312 of this Act and make sure that there are no other bases for carrying out land reform provided for in this Act.
(4) After receiving the permission of the county governor the rural municipality or city government shall forward the layout of the land suitable for joining to an immovable to all the owners of the bordering immovables, to whose immovables it is expedient and possible according to planning and land readjustment requirements to join the bordering land or a part thereof. The proposal for privatisation of land shall not be made to the owner of a bordering immovable whose bordering immovable is subject to be acquired by the state on the basis of § 20 of the Nature Conservation Act. The person who receives the proposal has the right to submit an application for the acquisition of land to the rural municipality or city government within one month after receipt of the layout. The owners of all other bordering immovables shall be notified of the proceeding for the acquisition of land suitable for joining to an immovable by ordinary letter.
(5) If the owners of several bordering immovables wish to acquire land suitable for joining to an immovable and they fail to reach an agreement during the term set by the rural municipality or city government, the rural municipality or city government shall decide whether it is expedient according to planning and land readjustment requirements to divide or not to divide land and to provide one or several applicants respectively with an opportunity to acquire land.
(6) If the retention in state ownership or municipal ownership of land suitable for joining to an immovable is being applied for in part or in full as land bordering on a land unit belonging to a construction work, including road, in the ownership of the state or a local government and joining of it to the land in the ownership of the state or the local government is in accordance with planning and land readjustment requirements, the part of the land which is applied for into the ownership of the state or the local government is not subject to division among other persons wishing to acquire land.
(7) A separate cadastral unit or separate cadastral units are formed from land suitable for joining to an immovable. The limitation of the minimum size of a cadastral unit provided for in the Land Cadastre Act does not apply to the formation of the cadastral unit. The costs of formation of the cadastral unit shall be covered by the person acquiring the land.
(8) The intended use of the immovable to which land is joined is determined as the intended use for the cadastral unit formed from the land suitable for joining to an immovable which is subject to be transferred. As an exception, an intended use different from the intended use of the immovable is determined for the cadastral unit to be joined if there is a body of water or road on the immovable or the cadastral unit to be joined thereto due to which the intended use arising from the body of water or the intended use of transport land shall be determined for it. If the immovable has more than one intended use, one or several of these intended uses may be determined as the intended use for the land to be joined to the immovable.
(9) In the event of privatisation of land suitable for joining to an immovable the selling price of the land is the lowest of the assessed values of land determined on the basis of the results of assessments. Upon privatisation of forest land, the value of the standing crop, which is determined on the same bases as the value of the standing crop determined upon privatisation of land with a right of pre-emption, is added to the selling price of the land. The expenses related to the acquisition of land suitable for joining to an immovable and the notary fees involved in entry into the contracts shall be covered by the person acquiring the land.
(10) The composition of, limitations on and the procedure for payment of the expenses specified in subsection (9) of this section shall be established by a regulation of the Government of the Republic.
(11) If lands specified in subsection 312 (1) of this Act are situated in the area concerning which a local government has initiated detailed planning, the proceeding for acquisition of such land shall be carried out simultaneously with the planning proceeding, regardless of whether or not all the bordering immovables are situated in the planned area.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]

Part VII RIGHT OF USE OF LAND BY CONTRACT AND RIGHT OF SUPERFICIES 

§ 32.  Granting land for use by contract

(1) Use of land retained in state ownership is granted on the bases of and pursuant to the procedure provided for in the State Assets Act unless otherwise provided by this Act.
(2) Land to be returned or land subject to privatisation by a right of pre-emption in the course of land reform is not granted for use by contract, except in the cases provided for in §§ 341 and 351 of this Act.
§ 33. – § 34. [Repealed]

§ 341.  Procedure for establishment of usufruct on land and use of land on basis of usufruct

(1) A usufruct may be established for the benefit of a person who was granted use of land pursuant to the Estonian SSR Farm Act and who uses the land during application for establishment of a usufruct and does not wish to acquire the land.
(2) A usufruct on agricultural land shall be established for up to 15 years for the benefit of a person who is engaged in agricultural production and has obtained usufruct rights on the land pursuant to § 233 of this Act. Within three months after expiry of the specified term, the usufructuary has the right to apply for extension of the contract for up to 15 years.
[RT I 2009, 18, 107 - entry into force 28.03.2009]
(21) A usufruct is established on land in accordance with planning and land readjustment requirements. For the purpose of establishment of a usufruct on land, a cadastral unit may be formed with the permission of the cadastral registrar on the basis of desk survey only in the case the land on which a usufruct is to be established borders solely on cadastral units registered in the land cadastre which were formed by a survey (excluding geodetic survey by aerial photography). Upon establishment of a usufruct on land on the basis of § 233 of this Act, a usufruct shall be established on the land by the formed cadastral units and not by sets thereof.
(3) A person for whose benefit a usufruct is established on the basis of this section has the right to apply for acquisition of the land two years after establishment of the usufruct. Transfer of land on which a usufruct is established into ownership is regulated by a separate Act which provides the persons who are entitled to acquire land encumbered with a usufruct and the extent of and conditions for acquisition of the land.
[RT I 2009, 18, 107 - entry into force 28.03.2009]
(31) The cutting of standing crop by the usufructuary shall be excluded on the land on which a usufruct is established as vacant agricultural land on the basis of subsection 201 (3) of the Law of Property Act. As an exception, standing crop may be cut by a usufructuary on land on which a usufruct is established pursuant to the procedure and for the fee determined by the Government of the Republic. Land on which a usufruct is established shall not be subject to a commercial lease or granted for use to another person.
[RT I 2009, 18, 107 - entry into force 28.03.2009]
(4) A person for whose benefit a usufruct is established on the basis of this section shall during the first five years pay only land tax, the payment of usufruct fees commences after five years from the entry of the usufruct in the land register. The amount of the annual usufruct fee is 2% of the effective assessed value of the land, but not less than 6.35 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(5) Establishment of a usufruct shall be organised by the county governor pursuant to the procedure established by the Government of the Republic. Upon establishment of a usufruct on land, the local government shall perform the preliminary acts provided by this Act and legislation based thereon. At the same time with an application for entry of land which is retained in state ownership pursuant to clause 31 (1) 12) of this Act in the land register, a real right contract for establishment of a usufruct entered into in unattested written form may be submitted. By agreement with a local government council, the county governor may authorise the local government to organise the establishment of usufructs on behalf of the state on land which is retained in state ownership and entered in the land register. The contract on establishment of a usufruct shall be entered into by the county governor or an official of the county government authorised thereby.
[RT I 2009, 18, 107 - entry into force 28.03.2009]
(51) The contract on establishment of a usufruct on land shall contain the provisions of the real right contract for the registration of land and real rights relating to land. The mandatory requirements for contracts for the establishment of a usufruct are as follows, according to the circumstances:
1) confirmation of the person obtaining usufruct rights on land that by obtaining usufruct rights on vacant agricultural land the person does not exceed the limit provided for in subsection 233 (6) of this Act or that by obtaining usufruct rights on land the person does not exceed the extent of land which use is granted to the person pursuant to the Estonian SSR Farm Act or pursuant to the procedure equivalent thereto;
2) the obligation of the person obtaining usufruct rights on land to pay land tax during the term of the contract;
3) the obligation of the person obtaining usufruct rights on land to commence to pay usufruct fees after five years from entry of the usufruct in the land register;
4) upon delay of payment of usufruct fees, the obligation of the person obtaining usufruct rights on land to pay a penalty for late payment of 0.05 per cent of the overdue amount for each day the payment is delayed;
5) the obligation of the person obtaining usufruct rights on land not to subject land to a commercial lease or grant the use thereof to another person;
6) the obligation of the person obtaining usufruct rights on land to use the land for the intended purpose and following good agricultural practice;
7) a reference to subsection 201 (3) of the Law of Property Act under which the cutting of standing crop on land on which a usufruct is established by the usufructuary is excluded and to the exception provided for in subsection (31) of this section;
8) the obligation of the person obtaining usufruct rights on land to pay a contractual penalty in the amount of at least 1270 euros for undue performance of the obligations specified in clause 1), 5), 6) or 7) of this subsection.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(6) The person obtaining usufruct rights on land shall bear the costs related to the establishment of a usufruct on land, the composition of which and the basis for determination of which shall be established by the Government of the Republic.
(61) If the usufructuary does not wish to continue agricultural production, the county governor shall terminate the usufruct contract. Simultaneously with terminating the contract, the county governor has the right to enter into a contract for the establishment of a usufruct on the same conditions with a person who continues agricultural production and is a relative to the usufructuary or a spouse living together with the usufructuary.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(7) Upon the death of a usufructuary, the spouse who lived together with the usufructuary may take the place of the usufructuary in the contract for the establishment of a usufruct. If the usufructuary did not have a spouse who lived together with him or her or the spouse does not wish to take the place of the usufructuary in the contract for the establishment of a usufruct, one successor has the right to take the place of the usufructuary in the contract for the establishment of a usufruct pursuant to an agreement between the successors.
(8) If a person violates the provisions of subsection (31) of this section or does not use the land for an intended purpose and does not follow good agricultural practice or regularly fails to pay usufruct fees within the set term, the county governor shall terminate the usufruct contract and, if necessary, claim the caused damage from the usufructuary in addition to the contractual penalty provided for in clause (51) 8) of this section.
[RT I 2005, 61, 476 - entry into force 27.11.2005]

§ 35.  [Repealed]

§ 351.  Constitution of right of superficies for benefit of owner of construction work

(1) A right of superficies shall be constituted for the benefit of the owner of a construction work who does not wish or who does not have the right to acquire the land.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]
(11) The procedure, terms and conditions for the constitution of the right of superficies on state land during land reform, including the amount of the annual charge for the right of superficies and the procedure for amendment and payment thereof, shall be established by a regulation of the Government of the Republic.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]
(12) The proceeding for the constitution of the right of superficies shall not be commenced and the right of superficies shall not be constituted on the basis of a building permit if construction has not been commenced. In such case the right of use of land granted for the erection of a construction work shall be deemed terminated.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]
(13) The right of superficies shall be constituted on the basis of a decision of the county governor of the location of the land. The contract for constitution of the right of superficies shall be entered into by the county governor or an official of the county government authorised thereby.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]
(2) The owner of a construction work for whose benefit the proceeding for the constitution of the right of superficies has been commenced has the right, after registration of the land necessary for servicing the construction work in the land cadastre, to privatise the land belonging to the construction work if it is not the land necessary to the state for performing its functions. The county governor shall notify the owner of the construction work of the conditions for the privatisation of the land within two months after registration of the land unit in the land cadastre and make a proposal for the privatisation of the land. The selling price of land to be privatised is the assessed value of the land effective at the time the privatisation is decided. Upon privatisation of land, the incentives specified in subsections 223 (2), (9) and (10) of this Act cannot be used.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(3) If the owner of a construction work wishes to privatise land, he or she shall submit a respective application within one month after receipt of the proposal from the county governor. The privatisation of land shall be decided by the county governor.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(4) The owner of a construction work has the right to enter into a sales contract and real right contract within three months after entry into force of the decision on privatisation of land. If the owner of a construction work fails to enter into a sales contract and real right contract concerning the land within the specified term, he or she loses the right to privatise the land and the county governor continues with the proceeding for the constitution of the right of superficies.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(5) The expenses related to the privatisation of land necessary for servicing the building on the basis of subsection (2) of this section and the notary fees involved in entry into the contracts shall be covered by the person privatising the land. The expenses involved in the constitution of the right of superficies shall be covered from the ownership reform reserve fund.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(6) The composition of, limitations on and the procedure for payment of the expenses specified in subsection (5) of this section shall be established by a regulation of the Government of the Republic.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(7) If the land unit designated for privatisation with a right of pre-emption concerning which a person has lost the right to privatise is larger than the land necessary for servicing the construction work, the county governor shall initiate, simultaneously with formation of a cadastral unit in respect of land necessary for servicing the construction work, the proceeding for retaining in state ownership of the land remaining from land necessary for servicing the construction work.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(8) The contract for constitution of the right of superficies on state land shall be entered into in writing. The contract for constitution of the right of superficies on land shall be entered into within two months after the day of entry into force of the decision on retaining land in state ownership. If the owner of a construction work fails to enter into a contract for the constitution of the right of superficies within the specified term, the county governor shall constitute the right of superficies on the state land for the benefit of the owner of the construction work on the basis of the decision of the county governor. The county governor shall submit the contract for or the decision on the constitution of the right of superficies and an application for the registration of land retained in state ownership and for the constitution of the right of superficies to the land registry department.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]
(9) To secure the payment obligation for a right of superficies, a real encumbrance is entered in the right of superficies land registry part for the benefit of the land owner. A real right contract is entered into in writing for the establishment of the real encumbrance. If the owner of a construction work fails to enter into the contract, the county governor shall establish the real encumbrance on the basis of the decision of the county governor. To secure the claim on changing the amount of payment, a corresponding entry shall be made in the right of superficies land registry part with the same ranking as the real encumbrance. The superficiary is obliged to be subject to immediate compulsory enforcement for the satisfaction of a financial claim secured by the real encumbrance.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]
(10) If a construction work is the joint property of spouses, the right of superficies is constituted for the benefit of both spouses on the basis of their joint application. Unless the spouses submit a joint application, the right of superficies is constituted for the benefit of the spouse who is registered as the owner of the construction work. The other spouse shall be entered in the land register as a joint owner on the basis of a notarised joint application from the spouses.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]

§ 36.  Extinguishment of current use of land

(1) The current right of use of land extinguishes with re-registration of use of land on the bases provided for in this Act or the State Assets Act.
(2) [Repealed]
(3) [Repealed]

§ 37.  [Repealed]

Part VIII GUARANTEE OF LAND REFORM 

§ 38.  Procedure for carrying out land reform

(1) Land reform shall be carried out by the Government of the Republic through the Land Board, by the county governors and local governments on the basis of this Act pursuant to the procedure established by the Government of the Republic.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(2) In carrying out land reform, the Land Board has the right to:
1) monitor the activities of state agencies, county governors and local government bodies in the carrying out of land reform;
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
2) require information and reports from state agencies, county governors and local government bodies on the carrying out of land reform;
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
3) make mandatory precepts to state agencies, county governors or local government bodies concerning the issues of carrying out of land reform;
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
4) provide explanations on the implementation of legislation related to land reform;
5) involve qualified persons of ministries and other state agencies and scientists and practicians of appropriate areas in the resolution of problems arising in the course of land reform;
6) transfer the right to perform acts which were granted to the competence of local governments by the Land Reform Act to a county government in concordance with the county governor if the local government fails to comply with precepts based on law on time.
(3) In order to attain the objective provided for in § 2 of this Act or to perform the functions provided for in § 3 of this Act, the Land Board may organise the ascertainment of land to be privatised, transferred into municipal ownership or retained in state ownership.
(4) During a land privatisation proceeding, a person with the right to privatise land is required to perform acts necessary for the proceeding within the terms and pursuant to the procedure established by the Government of the Republic. If a person with the right to privatise land fails to perform the necessary acts within the term of which the person is informed in writing, the person is deemed to have waived the claim for privatisation and the privatisation proceedings are terminated, the land necessary for servicing the construction work is retained in state ownership and the right of superficies is constituted on such land for the benefit of the owner of the construction work pursuant to the procedure established by the Government of the Republic.
(5) If supervision proceedings have been initiated concerning an administrative act adopted by a local government or county governor in carrying out land reform, implementation of the administrative act and the proceeding for carrying out land reform related to this administrative act are suspended until the results of the supervision are obtained. The person conducting supervision shall promptly notify the local government, county governor and other persons concerned of initiation of supervision.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]

§ 39.  [Repealed]

Part VIII1LAND INSTALMENT CLAIMS INFORMATION SYSTEM  
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]

§ 391.  Establishment of land instalment claims information system

(1) Land instalment claims information system (hereinafter the database) is a database belonging to the State Information Systems which is established for the administration of contracts of sale of land, real right contracts, contracts for the establishment of a mortgage and contracts for the encumbering of state land entered into in carrying out land reform and for the efficient performance of the duties of the mortgagee and administrator of state land.
(2) The database shall be established and its statutes shall be approved by a regulation of the minister responsible for the area.
(3) The chief processor of the database shall be the Ministry of the Interior and the authorised processors shall be the county governors.
(4) Contracts for the transfer and encumbering of land entered into in carrying out land reform and information necessary for the administration of financial claims of the state arising from such contracts shall be entered in the database. The exact list of information to be entered in the database shall be established in the statutes of the database.
(5) The processing of personal data in the database is permitted only to the extent which is necessary for the achievement of the goal of establishment of the database.
[RT I, 14.01.2014, 1 - entry into force 24.01.2014]

Part IX IMPLEMENTING PROVISIONS  
[RT I 2003, 26, 155 - entry into force 15.03.2003]

§ 40.  Time limits for completion of land reform
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]

(1) Applications for the privatisation of land by a right of pre-emption are shall be accepted until 31 December 2003 unless an earlier term is provided by law. Applications for the privatisation of land adjacent to a construction work, which is acquired as a movable and which transferor has not submitted an application for privatisation of land, shall be accepted until 1 March 2006; applications for the privatisation of land necessary for servicing a construction work shall be accepted until 1 June 2006. Unless an application has been submitted for the privatisation of land adjacent to a construction work by 2 June 2006, a right of superficies shall be constituted on the land necessary for servicing the construction work on the basis of a decision of the county governor pursuant to the procedure and on the conditions established by the Government of the Republic.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(2) Applications for participation in the privatisation of land at a closed or public auction shall be accepted until 31 December 2003. After this date, an application for the privatisation of land at a closed auction shall be accepted only if it is submitted on the basis on the decision not to return the land provided for in clause 22 (4) 1) or 2) of this Act and if the decision is made after 1 October 2003. Applications for privatisation submitted on the bases provided for in the previous sentence shall be accepted until 1 March 2006.
[RT I 2005, 61, 476 - entry into force 27.11.2005]
(3) The rural municipality or city government shall make a proposal on the location of the borders of the land necessary for servicing the construction work no later than on 31 December 2015.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(4) The local government shall submit an application for obtaining land into municipal ownership no later than on 30 June 2016. If the decision not to return or privatise land is made less than six months before the specified date, the rural municipality or city government may submit the application within six months after the decision not to return or privatise land is made.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(5) The rural municipality or city government shall submit, no later than on 31 January 2014, to the county governor a list of construction works, concerning which the right of superficies shall be constituted for the benefit of the owner on the basis of § 351 of this Act, indicating for each construction work whether or not an application for the constitution of the right of superficies has been submitted.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(6) Unless the person specified in subsection 351 (1) of this Act has submitted an application for the constitution of the right of superficies, the rural municipality or city government or county governor shall initiate a proceeding for the constitution of the right of superficies no later than on 31 January 2015.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]
(7) If the owner of a construction work loses the right to privatise land by a right of pre-emption after submission of the list specified in subsection (5) of this section to the county governor, the county governor shall terminate the proceeding for the privatisation of land within two months after the loss of the right of privatisation of land and initiate a proceeding for the constitution of the right of superficies.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]

§ 41.  Application of Act in connection with accession to the European Union

(1) Subsection 21 (8) of this Act enters into force as of the moment of Estonia's accession to the European Union, with the exception of the special conditions provided for in subsections (2) and (3) of this section.
(2) For seven years after Estonia's accession to the European Union, a land unit with an area of more than 2 ha containing a land use type of agricultural land may be privatised or a usufruct may be established on such land unit with a preferred right to privatisation to the following only:
1) Estonian citizens;
2) citizens of the Contracting States who have permanently resided in Estonia and engaged in the production of agricultural produce here within the meaning of subsection 233 (2) of this Act for at least the last three years;
3) Estonian legal persons or legal persons of the Contracting States who are entered in the commercial register, who have been registered in the commercial register for at least the last three years and who have engaged in the production of agricultural produce in Estonia within the meaning of subsection 233 (2) of this Act at least during the last three years.
(3) For seven years after Estonia's accession to the European Union, a land unit with an area of more than 2 ha containing a land use type of forest land may be privatised to the following only:
1) Estonian citizens;
2) citizens of the Contracting States who have permanently resided in Estonia for at least the last three years.
(4) If an application for the privatisation of land is submitted before the entry into force of subsections (2) and (3) of this section and under conditions which are more favourable for the person than the conditions provided for in the specified subsections, the conditions which were in force before the entry into force of the specified subsections apply upon privatisation.

§ 42.  Application of notation concerning prohibition upon acquisition of land by state

A notation entered in the land register on the basis of subsection 20 (12) of the Act concerning the prohibition on exchange of land also applies to the acquisition of land by the state. The corresponding entry shall be made in the land register on the basis of an application of the county governor.
[RT I 2010, 38, 231 - entry into force 01.07.2010]

§ 43.  Application of Act upon succession of right of claim

(1) If a right of claim for the return of land has terminated in conformity with subsection 192 (3) of this Act or § 26 of the Land Reform Act Amendment Act (RT I 2005, 61, 476), but the proceeding for the return of land has not been terminated, the right of claim is deemed to be restored from 1 September 2010.
(2) If a right of claim for the return of land has terminated in conformity with subsection 192 (3) of this Act or § 26 of the Land Reform Act Amendment Act (RT I 2005, 61, 476) and the proceeding for the return of land has been terminated, the county or rural municipality government of the location of land shall restore the right of claim at the request of the entitled subject or at its own initiative and resume the return proceeding if there is a good reason therefor. The request for restoration of the right of claim and resumption of the proceeding must be submitted no later than on 31 August 2011.
(3) Administrative acts given and transactions and administrative acts made in respect of the unlawfully expropriated land after termination of the return proceeding but before submission of the request specified in subsection (2) of this section shall remain effective.
(4) If land cannot be returned due to a lawful administrative act given or transaction or act made as specified in subsection (3) of this section, the land shall be compensated for pursuant to the procedure provided for in this Act.
[RT I 2010, 41, 242 - entry into force 01.09.2010]

§ 44.  Transfer of land reform files

Files prepared in respect of proceedings provided for in the Land Reform Act and legislation issued on the basis thereof shall be transferred to the Land Board after arrangement thereof in conformity with the requirements for permanent storage and closure thereof. If a county governor has authorised a local government on the basis of subsection 222 (2) of this Act to organise privatisation of land with the right of pre-emption on behalf of the state and the files are kept at the rural municipality or city government, the files shall be transferred to the Land Board by the rural municipality or city government.
[RT I, 15.03.2013, 26 - entry into force 20.03.2013]


Extract
from the Republic of Estonia Land Reform Act and Legislation Related to Land
Reform Act Amendment Act Amendment Act (RT I 1997,
81, 1363) concerning the implementation of the Land Reform Act:

III. Implementing
provisions

§ 14. (1)
The procedure provided for in subsections 12 (7), 13 (7) and 16 (5) of the
Republic of Estonia Principles of Ownership Reform Act (RT 1991, 21, 257; RT I
1997, 27, 391; 74, 1230) applies to the proceeding for the return of and
compensation for land.

(2) A
person who has the right to privatise land with a right of pre-emption pursuant
to the Land Reform Act and who has not submitted a corresponding application
must submit it by 1 January 1998. If no application is submitted within the
established term, the land necessary for servicing the construction work is
retained in state ownership and the right of superficies is constituted for the
benefit of the owner of the construction work.

(21)
If a construction work as a movable is acquired after 1 January 1998, the
person who has acquired the construction work has the right to privatise land
with a right of pre-emption on the bases provided for in the Land Reform Act.
The person who has acquired a construction work must submit an application for
the privatisation of land with a right of pre-emption within three months after
the day of acquisition of the construction work. If no application is submitted
within the established term, the land necessary for servicing the construction
work is retained in state ownership and the right of superficies is constituted
for the benefit of the owner of the construction work pursuant to the procedure
established by the Government of the Republic.
[RT I 2000, 54, 347]

(22)
If a construction work as a movable is acquired after 1 January 1998 and the
transferor of the construction work has submitted an application for the
privatisation of land with a right of pre-emption no later than by 1 January
1998, the application for the privatisation of land with a right of pre-emption
submitted by the transferor of the construction work by 1 January 1998 shall
remain effective also in respect of the new owner of the construction work. The
new owner of the construction work shall submit an application within three
months after the day of acquisition of the construction work only if the new
owner does not wish to privatise land. In such case the land necessary for
servicing the construction work is retained in state ownership and the right of
superficies is constituted for the benefit of the owner of the construction
work pursuant to the procedure established by the Government of the Republic.
[RT I 2000, 54, 347]

(23)
If a co-owner of a construction work has failed to submit an application to
privatise land with a right of pre-emption during the specified term, but
expresses a wish to privatise land with a right of pre-emption during the
performance of preliminary acts for privatisation by submitting a corresponding
application to the rural municipality or city government, the land shall be
privatised in proportion to the shares of the co-owners in the construction
work. If the co-owner specified in the previous sentence does not wish to
privatise land with a right of pre-emption, a co-owner who has submitted an application
for the privatisation of land with a right of pre-emption has the right either
to request privatisation of the land under the construction work and necessary
for servicing the construction work and constitution of the right of
superficies on such land pursuant to the procedure and on the conditions
established by the Government of the Republic for the benefit of all co-owners
of the construction work or to initiate expropriation proceedings concerning a
part of the construction work pursuant to the procedure provided for in § 12 of
the Law of Property Act Implementation Act (RT I 1993; 72/73, 1021; 1999, 44,
510).
[RT I 2000, 54, 347]

(3)
The procedure for making an advance payment for land shall be established by
the Government of the Republic within one month after the entry into force of
this Act.

(4)
If a closed auction has been announced before the entry into force of this Act,
it shall be completed under the currently applicable conditions.

(5)
An entitled subject for the return of land whose land to be returned is
situated in Ida-Petserimaa can buy land at a closed auction in Põlva County or
Võru County and a subject whose land to be returned is situated in Virumaa to
the east of the Narva River can buy land at a closed auction in Ida-Viru County.

(6) A
person who used state land adjacent to a privatised construction work on the
basis of a right of superficies contract or commercial lease agreement entered
into before entry into force of this Act has the right to request privatisation
of the land used under the contract or agreement with a right of pre-emption
taking into account the restrictions provided for in § 21 of the Land Reform
Act.

(7)
The land of a former registered immovable may be returned in parts at different
times with the consent of the entitled subject if simultaneous return of the
parts is impossible due to the resolution of an issue of dispute, entry into
agreements, plans, land readjustment or surveying.

(8)
The provisions of subsections 221 (2) and (22) of the
Land Reform Act also extend to the person to whom land has been returned or
privatised with a right of pre-emption before the entry into force of this Act.

(9) §
224 of the Land Reform Act enters into force on 1 January 1998.

Extract
from the Land Reform Act Amendment Act (RT I 2005,
61, 476) concerning the implementation of the Land Reform Act:

II.
Implementation of Act

§ 19. If a
person entitled to privatise land with a right of pre-emption has received from
a competent person a proposal on the location of the borders of land to be
privatised with a right of pre-emption compiled pursuant to the procedure
established by the Government of the Republic, but has not placed an order to a
person with a corresponding licence for the formation of a cadastral unit on
the basis of the specified proposal, the person entitled to privatise is
obliged to place a corresponding order within three months after the entry into
force of this Act. If the person entitled to privatise land fails without good
reason to place an order for the formation of a cadastral unit within the
specified term, the person loses the right to privatise land. In such case the
land necessary for servicing the construction work is retained in state
ownership and the right of superficies is constituted for the benefit of the
owner of the construction work pursuant to the procedure established by the
Government of the Republic.

§ 20.
Persons entitled to privatise who are entered by the rural municipality council
in the list of persons privatising vacant agricultural and forest land on the
basis of subsections 231 (4) and 232 (4) of the Land
Reform Act and who have not ordered cadastral unit formation works from a
person holding a corresponding licence pursuant to the procedure established by
the Government of the Republic according to a proposal made by the organiser of
privatisation of land are obliged to place a corresponding order within three
months after the entry into force of this Act. If the person entitled to
privatise fails without good reason to place an order for the performance of
cadastral unit formation works within the specified term, the person loses the
right to privatise land.

§ 21.
Unless an earlier due date is established by law for the entry into a contract
of purchase and sale of land at a closed or public auction or privatised as
free agricultural and forest land, the person entitled to privatise land has
the right to enter into a contract of purchase and sale of land within three
months after the entry into force of this Act. A person entitled to privatise
who fails without good reason to enter into a contract of purchase and sale of
land within the specified term loses the right to privatise land.

§ 22. A
person entitled to privatise land with a right of pre-emption who has not
entered into a contract of purchase and sale of land has the right to enter
into a contract of purchase and sale of land within seven months after the
entry into force of this Act. A person entitled to privatise who fails without
good reason to enter into a contract of purchase and sale of land within the
specified term loses the right to privatise land. In such case the land necessary
for servicing the construction work is retained in state ownership and the
right of superficies is constituted for the benefit of the owner of the
construction work pursuant to the procedure established by the Government of
the Republic.

§ 23. The
establishment of a usufruct on vacant agricultural land provided for in § 231
of the Land Reform Act shall be completed on the bases of and pursuant to the
procedure hitherto in force if the local government council has approved the
list of persons obtaining usufruct rights on land before 1 January 2003. The
procedure for the establishment of a usufruct on vacant agricultural land shall
also be completed pursuant to the procedure specified in the previous sentence
if the list of persons obtaining usufruct rights on land has been approved by a
decision of the rural municipality council before 1 January 2003 and the
corresponding decision has been declared to be illegal or void by a court.

§ 24. The
Government of the Republic may establish a procedure for the grant of temporary
use of land specified in subsection 31 (2) of the Land Reform Act and for the
covering of costs related to the grant of use.

§ 25.
Applications for the transfer of land into municipal ownership submitted to the
Government of the Republic by the moment of entry into force of this Act shall
be reviewed on the bases of and pursuant to the procedure hitherto in force.

§ 26. If a
succession is opened before the entry into force of this Act and the person
entitled to inherit the right of claim or the person who has inherited the
right of claim has not submitted a right of succession certificate concerning
the succession of the right of claim to the local government of the location of
the unlawfully expropriated land, the person must submit it within nine months
after the entry into force of this Act. If a right of succession certificate is
not submitted within the specified term, the return proceeding is terminated
and the compensation proceeding is not commenced.

§ 27.
Subsection 25 (4) of the Land Reform Act does not apply in the case of transfer
of, establishment of a usufruct on or constitution of the right of superficies
on the land transferred into municipal ownership before the entry into force of
this Act.
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