It is now possible to own land not only in Ulaanbaatar but also in other prefectures
But this is still limited to Mongolian citizens only and under certain conditions.
Mongolia is gradually improving its land laws to bring them closer to international standards. There is never the less still a considerable amount of progress to be made.
During the course of the year, it is planned that 104.7 hectares of land will be privatized to Mongolian citizens, this privatisation of land comes with some strings, for instance, it can only be used by a family for residential reasons, while some business usage is allowed it must remain a small business directly owned by the family in addition to the land being their primary and only place of residence. Furthermore, the state will only approve the privatization of the land if it is currently occupied by the applicants, this means that no “virgin” will be approved for privatisation.
Also, for the first time, it will now be possible to purchase or receive certificates for ownership of land not only in Ulaanbaatar but also in other distant prefectures, paving the way for the creation of a healthy land based economy in secondary cities.
It is currently thought that a vast amount of the population is not understanding fully the privatisation laws, in particular regarding summer houses. The law is not designed to help people who already have a residence in Ulaanbaatar to gain a secondary summer residence elsewhere but rather it is aimed at assisting those whose plot of land is their sole and permanent residence obtain title to their land and thus be able to pledge them as collateral or use them to form the basis of a capital injection. This law allows those less fortunate to obtain security from expropriation for their land. Only those Mongolian citizen’s how have official property certificates and other proof of ownership materials as well as proof of permanent residence can claim the land for family usage.
As part of this program, the state has finished working on a new project to bring about the privatisation of 19 districts around UB for those lower income people who currently have no land in the famed ”ger district”.
About Land Ownership in Mongolia:
There are three types of land ownership systems in Mongolia:
Right of Use: Available to anyone who is an entity registered in Mongolia (such as a FIFTA) to purchase, usually a 15 year right of use in which something must be built on that plot of land. This is then extended every 15 years to a 60 year limit. Only land that is held by the state can have a right of use permit linked to it, this excludes all privatised land, mostly in the ger district and the new suburbs. Some basic fees apply each year to renew the land certificates.
Possession: Reserved to Mongolian citizens and 100% Mongolian corporate entities, means that you have the right to posses and use as you wish, indefinitely but it cannot be pledged in a bank or used as collateral. Can only be for familly use. It is essentially the same as ownership but applies to land that is held by the state and has not been privatised. Usually meant for those plots of land that will probably become privatised soon.
Ownership: Reserved solely to Mongolian citizens, is a full ownership title (freehold) over a certain plot of land with some strings attached linked to planning authorities regarding use.
Land ownership in Mongolia is to this day a complicated and convoluted process as the country is transitioning from a centrally planned economy where all land was owned to the state to a market economy system where people expect to be able to purchase land and be protected by the law for those purchases. There are still considerably risks involved with land purchases in Mongolia but this situation is improving constantly. Landlords in Ulaanbaatar can still be expropriated from their plots of land in “right of use” cases by the state for reasons of “State Interest”, however elusive that might be, compensation would be applicable but this is likely to be far below market value.
Source : M.A.D. News
Mongolia is gradually improving its land laws to bring them closer to international standards. There is never the less still a considerable amount of progress to be made.
During the course of the year, it is planned that 104.7 hectares of land will be privatized to Mongolian citizens, this privatisation of land comes with some strings, for instance, it can only be used by a family for residential reasons, while some business usage is allowed it must remain a small business directly owned by the family in addition to the land being their primary and only place of residence. Furthermore, the state will only approve the privatization of the land if it is currently occupied by the applicants, this means that no “virgin” will be approved for privatisation.
Also, for the first time, it will now be possible to purchase or receive certificates for ownership of land not only in Ulaanbaatar but also in other distant prefectures, paving the way for the creation of a healthy land based economy in secondary cities.
It is currently thought that a vast amount of the population is not understanding fully the privatisation laws, in particular regarding summer houses. The law is not designed to help people who already have a residence in Ulaanbaatar to gain a secondary summer residence elsewhere but rather it is aimed at assisting those whose plot of land is their sole and permanent residence obtain title to their land and thus be able to pledge them as collateral or use them to form the basis of a capital injection. This law allows those less fortunate to obtain security from expropriation for their land. Only those Mongolian citizen’s how have official property certificates and other proof of ownership materials as well as proof of permanent residence can claim the land for family usage.
As part of this program, the state has finished working on a new project to bring about the privatisation of 19 districts around UB for those lower income people who currently have no land in the famed ”ger district”.
About Land Ownership in Mongolia:
There are three types of land ownership systems in Mongolia:
Right of Use: Available to anyone who is an entity registered in Mongolia (such as a FIFTA) to purchase, usually a 15 year right of use in which something must be built on that plot of land. This is then extended every 15 years to a 60 year limit. Only land that is held by the state can have a right of use permit linked to it, this excludes all privatised land, mostly in the ger district and the new suburbs. Some basic fees apply each year to renew the land certificates.
Possession: Reserved to Mongolian citizens and 100% Mongolian corporate entities, means that you have the right to posses and use as you wish, indefinitely but it cannot be pledged in a bank or used as collateral. Can only be for familly use. It is essentially the same as ownership but applies to land that is held by the state and has not been privatised. Usually meant for those plots of land that will probably become privatised soon.
Ownership: Reserved solely to Mongolian citizens, is a full ownership title (freehold) over a certain plot of land with some strings attached linked to planning authorities regarding use.
Land ownership in Mongolia is to this day a complicated and convoluted process as the country is transitioning from a centrally planned economy where all land was owned to the state to a market economy system where people expect to be able to purchase land and be protected by the law for those purchases. There are still considerably risks involved with land purchases in Mongolia but this situation is improving constantly. Landlords in Ulaanbaatar can still be expropriated from their plots of land in “right of use” cases by the state for reasons of “State Interest”, however elusive that might be, compensation would be applicable but this is likely to be far below market value.
Source : M.A.D. News
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