LAW
REPUBLIC OF UZBEKISTAN
November 19, 1991
№. 427-XII
IT ENTERED INTO FORCE 12. 19. 1991 y
ABOUT RENTAL
SECTION 1. GENERAL PROVISIONS
Article 1. A rent
A Rent is a fixed-term paid possession and use of land, other natural resources, as well as property necessary for the tenant to independently carry out economic and other activities, based on an agreement.
Rent can be used in all areas of activity in relation to property of all forms and types of property that are not prohibited by the legislative acts of the Republic of Uzbekistan.
Article 2. Rent legislation
Lease relations are regulated by this Law and other acts of legislation of the Republic of Uzbekistan.
Article 3. Object of lease relations
Objects of rental relations can be:
enterprises, individual industries, workshops, farms, other divisions, organizations;
individual buildings, structures, equipment, vehicles, inventory, tools, and other material assets;
land (agricultural land is leased only for agricultural production) and other natural resources.
Legislative acts of the Republic of Uzbekistan establish types (groups) of enterprises, organizations, types of property and natural resources, the rental of which is not permitted.
Article 4. Subjects of rental relations
The subjects of rental relations are the lessor and the rent.
The lessor, who owns the right to lease, is the owner of the property or his authorized body, including foreign legal person and physical person.
Tenants can be legal person and physical person, including joint ventures, international associations and organizations, with the participation of Soviet and foreign legal persons, as well as foreign states and international organizations.
The participation of foreign legal person and physical person in the leasing of state property is regulated by the legislation of the Republic of Uzbekistan.
Article 5. Rental agreement
The basis for the emergence of rental relations is a rental agreement, which is concluded based on voluntariness and full equality of the parties for a certain period. At the same time, the lease of land for agricultural use and other natural resources must be long-term in nature – at least 5 years.
The rental agreement may be concluded on a competitive basis.
The rental agreement provides for:
composition and value of the property rental, the procedure for its transfer;
rental tenure;
conditions and amount of rent, terms of its payment;
the condition of the property in which the lessor must provide it to the rental;
conditions for the use of property by the tenant;
the condition and procedure for returning property to the renter after termination of the contract;
obligations of the parties to restore and repair the rental property;
conditions for further ownership of property after its full depreciation;
conditions, procedure and terms of redemption of rental property, if it is transferred with subsequent redemption;
conditions, procedure and possibility of subletting rental property;
the amount of information and the timing of its submission by the tenant to the landlord;
responsibility of the parties.
The rental agreement for land and other natural resources also includes provisions stipulating the tenant’s obligations for the rational use of the natural object in accordance with its intended purpose.
The rental agreement separately identifies the lessor’s property objects related to the non-productive sphere and their value, and indicates the obligations of the parties in relation to these objects (their preservation and maintenance).
The lease agreement may include other terms and conditions.
Article 6. Cost of rental property
The value of state property rental is determined in accordance with the legislation of the Republic of Uzbekistan.
The owner determines the value of non-state property rental.
Article 7. Transfer of property to the tenant
The lessor is obliged to lease the property to the rental in a condition consistent with the purpose of the property or as provided for in the contract.
The lessor is responsible for shortcomings, including those not identified, when concluding an agreement on the leased property, which prevent its use.
If the lessor does not promptly transfer the leased property for use to the lessee, the lessee has the right to claim this property from him and demand compensation for losses caused by the delay in performance, or to refuse the contract and recover losses caused to him by failure to fulfill the contract.
Article 8. Sublease of rental property
The tenant has the right to sublease the rental property with the permission of the lessor, unless otherwise provided by the legislation of the Republic of Uzbekistan and the rental agreement. In this case, the tenant remains liable under the agreement to the lessor.
Article 811. Transfer of rights and obligations regarding objects of lease relations (release)
Rights and obligations regarding the objects of lease relations may be transferred by the tenant to another person with the consent of the lessor (release), except for the cases provided for in part two of this article.
The tenant can transfer rights and obligations on agricultural land plots to another person (release) only in cases provided for by law.
In case of transfer of the right to real estate to another person, along with this object, the rights and obligations to lease the land plot occupied by this object and necessary for its use are transferred to another person in accordance with the law, and the consent of the lessor is not required.
Physical person and legal person that have received non-agricultural land plots in the manner prescribed by law through an electronic online auction may transfer (release) the rights and obligations in relation to the leased land plots to another person, but not more than for the lease term. In this case, the rights and obligations under the rent agreement are transferred to the new tenant.
Article 9. Property when rented
Renting out property does not entail transfer of ownership of this property.
Products manufactured using leased property and the income received, as well as property acquired at the expense of profit (income) received from leased property; belong to the lessee, unless otherwise provided by the legislation of the Republic of Uzbekistan.
The tenant’s right to build, at the expense of his own and borrowed funds on a leased land plot, the necessary premises for production and non-production purposes, including housing, in compliance with the general rules of development, must be provided for in the agreement. At the same time, the ownership of these buildings and structures after the termination of the lease agreement must be specified.
Buildings and structures built at the expense of the lessee with the permission of the lessor on the leased territory that cannot be moved belong to the lessor, unless otherwise provided by the agreement. Upon expiration of the contract or upon termination, the tenant has the right to compensation from the property owner for their cost.
Buildings and structures built at the expense of the tenant without the permission of the proprietor on the leased territory that cannot be moved belong to the proprietor. If the proprietor demands their demolition, the tenant is obliged to demolish them at his own expense or reimburse the costs associated with their demolition.
In the property owned by a rental enterprise, on the terms and in the manner prescribed by its charter, the amount of contributions of members of its labor collective to the creation of this property is determined through their personal labor participation, as well as monetary and other property contributions.
Securities may be issued for the value of a member of the workforce’s contribution to the property of a rental enterprise in accordance with its charter. Dividends are paid on these securities in amounts determined by the workforce, based on the final results of production and the development objectives of the enterprise. The real value of securities is paid to holders in cases provided for by the charter of the enterprise.
The charter of the enterprise determines the procedure and conditions for paying dividends to members of the labor collective who have terminated their employment relations with it.
The distribution of profit (income) remaining at the disposal of the rental enterprise is carried out in accordance with the decision of the collective of the rental enterprise.
Article 10. Write-off of funds from the tenant’s accounts
Funds can be written off from the tenant’s accounts at his direction or by decision of the relevant court.
Write-off of funds from the tenant’s accounts in an uncontested manner is allowed only in cases provided for by the legislative acts of the Republic of Uzbekistan.
Article 11. Improvement of rented property
The tenant has the right to independently make changes to the composition of the rented property, carry out reconstruction, expansion, technical re-equipment that increase its value, unless otherwise provided by the contract.
If the rented property is improved with the permission of the lessor, then upon expiration of the contract or upon termination, the tenant has the right to demand compensation for all expenses incurred for this purpose, unless otherwise provided by the rent agreement.
Improvements made without the permission of the renter and not separable from the rented property without causing damage to it, after the expiration of the contract or upon its termination, are transferred to the lessor free of charge.
Improvements made without the permission of the lessor, if they are separable without causing damage to the rented property, the lessee may withdraw if the lessor does not agree to reimburse their cost.
Article 12. Rent
The rent is established by the rent agreement by mutual agreement of the parties, and the rent for state-owned land plots and natural resources is established in the manner and within the limits determined by the legislation of the Republic of Uzbekistan.
Rent is paid to the owner of the rented property. Moreover, if state property is rented, then the rent is subject to distribution in the manner established by law.
Rent may be set for all rental property in aggregate or separately for each property in kind, cash or mixed forms. The conditions and terms of rent payment are determined by the contract.
The amount of rent may be changed by agreement of the parties, within the terms specified in the contract. They can be revised ahead of schedule at the request of one of the parties in cases of changes in centrally established prices, tariffs and land tax rates and in other cases provided for by the legislative acts of the Republic of Uzbekistan.
Article 13. Changing the terms of the rental agreement, its termination and termination
Changing the terms of the rental agreement, its termination and termination are permitted by agreement of the parties.
At the request of one of the parties, the rental agreement may be terminated by decision of the relevant court in the event of violation by the other party of the terms of the agreement.
If the tenant is declared incompetent, the contract is terminated in the manner and under the conditions established by the legislation of the Republic of Uzbekistan. In this case, one of his family members has the priority right to conclude a rental agreement. The rental agreement is also terminated, if the tenant is punished for committing a crime, which precludes the possibility of further fulfillment of the agreement.
Article 14. Renewal of the rent agreement
If, after the expiration of the contract, the tenant continues to actually use the rental property and the lessor had no objections to this before the expiration of the contract, then the contract is considered renewed for the same period, unless otherwise provided by the contract.
Upon expiration of the contract, the tenant, who has properly fulfilled the obligations assumed under the contract, has a priority right over other persons to renew the contract.
Article 15. Preservation of the rental agreement in the event of the death of the tenant
In the event of the death of the tenant, one of his heirs has the right to demand recognition of himself as a tenant on the basis and terms of the current rental agreement.
The proprietor has the right to refuse to recognize the heir as a tenant if the personal qualities of the deceased tenant were a condition for concluding a valid rental agreement.
Article 16. Preservation of the validity of the rent agreement upon transfer of property to another owner
When the ownership of rental property or the rights listed in the legislation of the Republic of Uzbekistan on property is transferred from the renter to another person, the previously concluded agreement remains in force in relation to the new owner, unless otherwise provided by the legislation of the Republic of Uzbekistan.
In the event of reorganization of a legal entity that is not the owner, its obligations and rights as a lessor, pass to its legal successors, unless otherwise provided by the legislation of the Republic of Uzbekistan.
Article 17. Return of the rent’s property
After termination of the rental agreement, the tenant is obliged promptly return to the proprietor the property, land and other natural resources in the condition stipulated by the agreement.
If the tenant allows the condition of the rental property to deteriorate or does not return it in a timely manner, he must compensate the proprietor for losses incurred as a result.
Article 18. Redemption of rented property
The tenant, with the consent of the proprietor, may full or partially redemption the rental property, with the exception of agricultural lands and other natural resources. The redemption of state property is carried out in accordance with the legislation of the Republic of Uzbekistan.
The redemption of rented property is carried out at the expense of the tenant’s own funds, including income received from carrying out business activities under the rent, proceeds from the sale of property owned by the tenant, as well as loans and other financial resources acquired in ways that do not contradict current legislation.
State budget funds cannot be used to purchase rented property.
Legislative acts of the Republic of Uzbekistan may provide for cases when the repurchase of rented property is limited or not permitted.
Article 19. Redemption agreement
Law and agreement regulate relations between the parties to the purchase of property. The repurchase agreement defines:
composition and monetary (value) valuation of the property being purchased;
types and sources of ransom;
procedure and terms of redemption;
participation in the buyout of third parties, in particular creditors;
guarantees and quality of purchased property;
other provisions that do not contradict the legislation of the Republic of Uzbekistan.
For failure to fulfill or improper performance of obligations under the repurchase agreement, including for its modification and unilateral termination, the parties bear responsibility established by the legislation of the Republic of Uzbekistan and the repurchase agreement.
Disputes arising during the conclusion and execution of the repurchase agreement are considered by the appropriate court.
SECTION II. ENTERPRISE RENTAL
Article 20. Formation of a collective of tenants
The workforce of an enterprise or its structural units (hereinafter referred to as enterprises) has the right to form a collective of tenants to create a rental enterprise on its basis.
The decision on the formation of a collective of tenants and its management bodies is made by the general meeting (conference) of the labor collective by two-thirds of the votes of those present at the meeting (conference), competent to make decisions.
Article 21. Procedure for concluding a rental agreement for an enterprise
A team of tenants develops a draft rental agreement and sends it to the body authorized to rent the enterprise. This body is obliged to review the draft agreement and make a decision within thirty days from the date of its receipt.
Article 22. Status of a rental enterprise
The enterprise acquires the status of a rental company after signing a rental agreement and approval of the charter by the general meeting (conferences). The charter of a rental enterprise (except for rental enterprises based on state ownership) must provide for the property liability of members of the rental collective for the debts of the enterprise.
The organization, activities and liquidation of a rental enterprise are regulated by the Law “On Enterprises in the Republic of Uzbekistan” and other legislative acts of the Republic of Uzbekistan.
A rental enterprise acquires the rights of a legal entity from the date of its state registration and acceptance of the enterprise’s property in the prescribed manner.
When a state enterprise is transferred for rent, it is reorganized in the manner established by the legislation of the Republic of Uzbekistan.
The economic activities of the rental enterprise are carried out by the tenant independently. Outside of the performance of obligations under the rental agreement, the tenant is completely free to manage its business activities. Intervention by the proprietor in the activities of the rental enterprise, demands for the submission of plans, reports and other information not provided for by the legislation of the Republic of Uzbekistan and the agreement is not allowed.
Management of a rental enterprise is carried out in accordance with the Law of the Republic of Uzbekistan “On Enterprises in the Republic of Uzbekistan” and the charter.
Article 23. Succession in rental of enterprises
The rental enterprise becomes the successor to the property rights and obligations of the enterprise rental by it, including its rights to use land and other natural resources. In this case, the lessor may undertake the obligation to full or partially repay the company’s accounts payable.
The obligations of a state enterprise to sell products (works, services) in the volumes and within the time limits stipulated by its contracts are fulfilled by the tenant. The lessor transfers to the tenant material resources or limits (funds) on them, and takes other necessary measures to ensure the fulfillment of these obligations. Failure by the lessor to fulfill its obligations removes the corresponding obligations from the tenant.
The rent enterprise retains the right to centralized capital investments and subsidies in the amounts established for a state-owned enterprise rented. Property created using these funds is state property and must be included in the property rented.
It is prohibited to force the tenant to rent enterprises, facilities and property that are unnecessary for the tenant.
Article 24. Competition for the rent of enterprises and their property complexes
The owner or his authorized body, which has the right to rent the relevant property, announces a competition for the rent of enterprises and their property complexes.
Work collectives of enterprises, their structural divisions, mixed teams, including workers not employed at the enterprise, and other legal entities and individuals can participate in the competition.
The priority right to rent an enterprise or its subdivision, other things being equal, has their labor collectives.
Article 25. Rent of a state-owned enterprise in case of its reorganization or liquidation
If a state body authorized to manage state property makes a decision on the reorganization or liquidation of a state enterprise, the labor collective has the right to demand the transfer of the enterprise to rent.
Article 26. Creation of a rental enterprise based on the rental of property of a division of the enterprise
A rental enterprise can be created on the basis of leasing the property of production facilities, workshops, departments, farms and other divisions of enterprises with the consent of this division by the employees themselves, other teams, legal entities and physical person by decision of the body authorized to rent the enterprise.
A rental agreement is concluded with a company, part of the property is rented.
Registration of such a rental enterprise is carried out in accordance with current legislation.
Article 27. On-farm rent contract
Enterprises have the right to lease property to employees of departments in the form of on-farm contracting.
The relationship between the enterprise and such rental collective is determined by agreement.
On-farm rent of land and other natural resources is regulated by the legislation of the Republic of Uzbekistan and the agreement.
Article 28. Creation of rental enterprises based on property owned by public associations and organizations
Public associations and organizations have the right to rent their enterprises and their divisions on the terms determined by these organizations and provided for by this Law.
SECTION III. RENTAL PROPERTY BY CITIZENS
Article 29. Rights of tenants in individual or group rentals
Tenants for individual or group rentals have the rights provided for by this Law and other legislative acts of the Republic of Uzbekistan.
Article 30. Social insurance and social security of persons engaged in labor activities under individual or group rental conditions
Persons engaged in labor activities on an individual or group lease basis are subject to social insurance and social security on an equal basis with workers and employees.
The period of work of tenants during which insurance premiums were paid is included in the length of service.
SECTION IV. DISPUTE RESOLUTION, LIABILITY OF SUBJECTS OF LEASE RELATIONS
Article 31. Dispute resolution
Disputes between tenants and property owners regarding the conclusion, execution and termination of rental agreements are resolved by the relevant court in the manner established by the legislation of the Republic of Uzbekistan.
Article 32. Responsibility of subjects of rental relations
Legal entities and physical person, officials of state bodies bear responsibility established by law in the following cases:
violation of the procedure for concluding and terms of the contract;
failure to fulfill obligations under the contract;
changes or termination of the contract unilaterally;
violation of the procedure and conditions for changing and terminating the contract.
The legislation of the Republic of Uzbekistan may provide for liability for other violations of rental legislation.
Legal entities and physical person are obliged to compensate the victim for the damage they caused, including lost profits, in the manner established by the legislation of the Republic of Uzbekistan.
The tenant is liable for the debts of the rental company:
own property (for rental enterprises based on state ownership);
own property and personal property of members of the rental collective (for rental enterprises based on collective, private property, as well as for persons engaged in labor activities under the terms of individual or group rental), and if they are insufficient – in the manner and amount established by the legislation of the Republic of Uzbekistan.
President of the Republic of Uzbekistan I. KARIMOV
The document presented in an unofficial translation from the database of the law firm “S VERENIN’S LEGAL GROUP”.
The document presented from the database of the law firm “S VERENIN’S LEGAL GROUP”.
The document presented as of _______2024г.