On 24 September the Supreme Court of the Russian Federation published a ruling on the taking of non-residential premises from a garage cooperative in Moscow.
The lower courts refused the cooperative compensation for the loss caused by the taking, on the ground that its title had not been registered in the Unified State Register of Real Estate (EGRN).
The Judicial Panel, setting those decisions aside and sending the case back to the court of first instance, noted that:
1. The right to compensation. The Judicial Panel stressed that a compulsory taking of property for state needs must be accompanied by prior and equivalent compensation. The fact that title has not been registered in the EGRN is not an obstacle to payment of the compensation.
2. Possession in good faith. The Panel pointed out that the courts had not taken into account a decision, already in force, which confirmed that the cooperative had possessed the non-residential premises in good faith, openly and without interruption, for the period required for acquisitive prescription.
The decision of the Supreme Court brings out important points of law on the taking of real estate and on compensation for loss.
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