In practice, the following sometimes happens when buying land: at the time of purchase, the "Restrictions of rights and encumbrances of the property" section of the extract from the Unified State Register of Real Estate (USRRE) says "not registered", and only later — sometimes decades later — does the owner find out that certain restrictions do in fact apply to the plot, directly affecting its market appeal and the owner's ability to use and dispose of it freely.

This article looks at the legal concept of a zone with special land-use conditions ("ZSLUC"), the consequences of establishing one for landowners and the ways to protect their rights.

Establishing a zone with special land-use conditions: legal consequences

A ZSLUC is an area subject to a special regime for the protection and use of land and land plots.

ZSLUCs are established for public purposes, including protecting the life and health of citizens, the safe operation of transport, communications and energy facilities and national defence and security facilities, environmental protection and ensuring national defence and state security (Article 104(1) of the Land Code).

The list of ZSLUCs is exhaustive and set out by the legislator in Article 105 of the Land Code.

A natural question arises: "How are ZSLUCs related to the rights and legitimate interests of landowners?" The point is that establishing a ZSLUC has adverse consequences for landowners:

• the inability to use the land plot in accordance with its established permitted use;
• a ban on construction;
• buildings already erected being deemed unauthorised structures and, accordingly, the person who built them, or at whose expense they were built, being obliged to demolish them.

Since this situation is not uncommon in practice, the law provides the following ways to protect landowners' rights and legitimate interests:

• Buyout of the land plot (Article 107(7) of the Land Code; Section IV of Government Resolution No. 59 of 27.01.2022 ("Resolution No. 59"));
• Compensation for losses while retaining rights to the land plot (Article 57.1 of the Land Code; Section III of Resolution No. 59).

Below we briefly look at each of these.

Buyout of the land plot as a way to protect the owner's rights

This remedy is available only if establishing or changing a ZSLUC makes it impossible to use the land plot and/or the property on it in accordance with their permitted use in full (Article 107(7) of the Land Code).

A buyout can be carried out by entering into an agreement out of court or through the courts.

The procedure for concluding a buyout agreement, its parties, content and essential terms are set out in Resolution No. 59.

When choosing this remedy, the owner should bear in mind that, as a general rule, establishing a ZSLUC does not in itself make it impossible to use the land plot.

A buyout agreement is preceded by the owner sending a buyout demand stating the value of the property to be bought out (paragraph 43 of Resolution No. 59).

The deadline for sending a demand to conclude a buyout agreement is no more than 5 years from the date the ZSLUC was established or changed, or from the date the person learned or should have learned of it.

Compensation for losses as a way to protect the owner's rights

This remedy is more universal, since the owner no longer has to prove that it is impossible to use the plot or the property on it in full.

Losses are compensated in full, i.e. the owner may claim both actual damage and lost profits (Article 57.1(1)(1) of the Land Code).

When determining the amount of losses, the following are taken into account:

• the reduction in the market value of the land plot (the difference between the market value of the plot without the restrictions and its market value with them) (Ruling of the Second Cassation Court of General Jurisdiction of 19.08.2025 in case No. 88-19949/2025; Resolution of the Arbitrazh Court of the North-Western District No. F07-22516/2023 of 14.03.2024 in case No. A56-18510/2022);
• other expenses;
• lost income.

To determine the amount of losses, the market value of the land plot needs to be assessed by an appraiser. Important: this is the most common option in practice, but not the only one, as losses can also be determined on the basis of agreements or accounting records.

The procedure for concluding an agreement on compensation for losses, its parties, content and essential terms are set out in Resolution No. 59.

Recommendations from the C Cases team

Not only may a right holder or prospective buyer of a land plot fail to learn about a ZSLUC from the USRRE extract, they may also find it difficult to obtain the relevant information from other sources.

Nevertheless, to exercise due care and diligence and minimise risks, we recommend:

• studying the USRRE extract and analysing the "restrictions and encumbrances" section;
• studying the town-planning plan of the land plot (if any);
• studying the General Plan and the Land Use and Development Rules of the municipality (or federal city) where the plot is located;
• studying the land use and development rules of municipalities (federal cities), which include, among other things, a ZSLUC map;
• physically inspecting the area and noting any warning signs (if present);
• sending enquiries to the competent authorities about whether the plot falls within a ZSLUC (for example, to the Ministry of Natural Resources and its territorial bodies regarding specially protected natural areas and their buffer zones).

Conclusion

Acquiring a land plot can come with "hidden" restrictions — for example, because a ZSLUC applies to the plot, which may not be recorded in the USRRE extract. A ZSLUC can significantly restrict the owner's rights: making it impossible to use the plot in line with its permitted use, banning construction and even leading to the demolition of buildings already erected. In that case, depending on the facts, the owner may demand either a buyout of the land plot or compensation for losses while retaining their rights to the plot.

If you have discovered after some time that a ZSLUC applies to your land plot, or need existing documents and information (USRRE extracts, town-planning documentation, etc.) analysed for related legal risks, the C Cases team is ready to provide comprehensive legal support.

Sources

• Land Code of the Russian Federation No. 136-FZ of 25.10.2001;
• Government Resolution No. 59 of 27.01.2022;
• Ruling of the Second Cassation Court of General Jurisdiction of 19.08.2025 in case No. 88-19949/2025;
• Resolution of the Arbitrazh Court of the North-Western District No. F07-22516/2023 of 14.03.2024 in case No. A56-18510/2022.