Prozorro.Sale

On August 12, the Cabinet of Ministers adopted a Resolution "On Approval of Model State Property Lease Agreements". Thus, the state property rental market got rid of the last obstacle and received the “green light” for full and transparent work according to the rules stipulated by the legislation on rent.

What Agreements Are We Talking About?

The Resolution approves two typical documents:

- the form of a model the lease of an integral property complex of a state-owned enterprise, its separate structural unit agreement;
- the form of a model the lease of real estate, other individually defined property related to state ownership agreement.

Main Innovations of the Resolution

The new forms of contracts fully comply with the requirements specified in the norms of the Procedure and the Law on the lease of communal and state property. Since the information in the contracts will be written in as much detail as possible, the cooperation between landlords and tenants will become more secure, transparent, and predictable.

The main innovations of the Resolution are as follows:

1. A tripartite lease instead of a bilateral one. The third party – the asset holder – receives the rights and obligations regarding the protection of state property, and becomes a full-fledged state participant in lease relations.
2. A security deposit and an advance payment are introduced. The winner of the auction pays them to the state budget: to the lessor and the balance holder, before the lease is concluded. So he guarantees his solvency.
3. Now the tenant can demand early termination of the contract due to a significant discrepancy between the leased object and the declared information, which prevents the full use of the object or repairs in it.

What Opportunities Open Up for Landlords

In addition to these global changes, the Resolution gives landlords the following opportunities:

- to publish announcements on the lease of state property and communal property in the Prozorro.Sale system;
- renegotiate leases that have expired if they can be renewed without applying the bidding procedure.

So now we can say that the Prozorro.Sale system is officially ready to restart the rental market under the new rules. There are no obstacles for transparent cooperation between tenants and landlords, and therefore we expect active development of the state property lease market.

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