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New ways to purchase and sell land property in Ukraine

The procedure of land sale contracts formalization was significantly amended on the 1st of January 2013. This was due to the Law of Ukraine “On state land cadastre” and “On state registration of rights to real property and their encumbrances” which entered into force. They provided new rules regarding origin, transfer and termination of rights to real property objects including land plots which significantly simplify the procedure under which land plots are disposed of. In particular it is important when we talk about privately owned land.

Previously, in order to sell a private land it was necessary not only to notarize and register land sale contract (barter agreement or deed of a gift) at a notary’s office but also to make a note proving disposal of the land on state land ownership certificate. At the same time the note had to be made not only by a notary who notarized the contract but also by the State Agency of Land Resources of Ukraine which is the body that performs state registration of rights to land. Such note of the State Agency of Land Resources of Ukraine had to confirm the fact of state registration of rights to land in the State Register of Lands and the very procedure of such registration would take up to 14 calendar days (and sometimes even more).

From now on, alienation of land takes one day (after notaries got status of state registrars). During this day a notary will be able to notarize land sale contract and send information about transfer of ownership to a land plot to the State Register of Property Rights on condition that parties provide all the documents that are required by the legislation and pay for services of notarization.

First of all the documents which are to be provided to notary include a contract based on which land ownership is transferred from one person to another. This can be either contract of sale or barter agreement, deed of gift. General requirements that are set for such contract are provided by Article 132 of the Land Code of Ukraine and haven’t been changed ever since 2009.

A seller (or other person that disposes of property) will also have to provide state land ownership certificate along with a contract of land sale. Despite the fact that ever since the 1st of January 2013 state land ownership certificates are not issued anymore, the documents that had been issued prior to this date are still valid and are recognized as documents that prove ownership rights to land. And Section 3 of Article 132 of the Land Code of Ukraine provides that the certificate is an annex to a contract based on which a land plot is disposed of.

Besides, it is required to provide a notary with the following documents:

  • Document proving seller’s ownership rights to the land plot. This document may be represented not only by state land ownership certificate but also by contract by means of which the land was acquired or inheritance affidavit;
  • Passports or other documents that verify identities of contract’s parties (their representatives);
  • Copy of ITIN (for individual who is a party of contract) or copy of certificate from the Unified State Register of Enterprises and Organizations of Ukraine (for a legal entity that acts as a party of contract);
  • Document which proves authority of a representative (contract of agency, letter of attorney, charter, order, etc.) and its copy (is kept by a notary)  - when a contract is signed by a representative;
  • Application of a new owner about registration of ownership rights to real estate;
  • Receipt of state duty payment;
  • Receipt of payment for provision of extract from the State Register of rights to real property;
  • Receipt of payment for other notary’s services;
  • Receipt of payment for provision of extract from the State land cadastre.

If a land plot does not have a cadastre number then an applicant will have to obtain an extract from the State land cadastre himself. At the same time only information about land plots that are registered in the State Register of lands will be automatically transferred to the State land cadastre. Taking into consideration the fact that the latter has been existing only since 2004, all this is applied to land plots ownership rights to which appeared or were transferred after this date.

Information about land plots that had been acquired or provided into ownership prior to 2004 is not included in the State Register of Land and therefore in the State land cadastre. This is due to the fact that the legislation provided no registration requirement prior to this date. In order for information about these land plots to be included in the State land cadastre it is required not only to submit a request about creation of entry about the plot in its Land book and obtainment of its personal cadastre number but also to obtain land use planning documentation related to land plot limits setting on site. Only after the information about your land plot is included in the State land cadastre it will be possible to obtain an extract from it and therefore sell the land to another person.

If a contract was entered into by individuals then it is additionally required to provide expert’s report about estimated cost of a land plot. If a land plot is disposed of by means of barter or deed of gift then a notary will request to provide a certificate about land plot cost evaluation in order to calculate the amount of state duty to be paid.

Thus it may be useful to obtain the following:

  • written consent of co-owners of a land plot (including a spouse) if the land is jointly owned;
  • permission of social services body to enter into contract (if the land is owned by a child);
  • document confirming consent of mortgage holder or a body of the State Tax Service of Ukraine for disposal of property (if the land is mortgaged or under tax lien).

Also it should be noted that formalization of sale agreement and registration of buyer’s ownership rights to it can be performed by a notary at the location of a land plot or at place of living (staying) of a party of contract. After formalization the parties receive notarized land sale contracts and the new owner additionally receives an extract from the State Register of property rights which proves the fact of registration of his ownership rights to it.

This material was prepared by legal experts of law firm “Pravova Dopomoga”.

If you require additional information on this issue or a similar one – contact us.

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