Registration of rights to uncompleted construction in Ukraine
In order to have the right to manage object of uncompleted construction and enter in any agreements in its regard (for example sale of rights to apartmentsr offices in an apartment building) a constructor must first of all register it as an object of uncompleted construction. In accordance with Section 3 of Article 331 of the Civil Code of Ukraine prior to such registration he is considered to be an owner of materials, equipment and other things that were used during process of construction and therefore can manage only them. But in order to register uncompleted construction one must undergo a certain procedure which is described in this comment.
First of all it is important to define an object of uncompleted construction. In accordance with Article 13 of the Law of Ukraine “On mortgage” an uncompleted construction is an object of construction for which a construction permit was obtained, which was invested in and wasn’t commissioned. Thus, ownership rights to uncompleted construction basically can be registered since the moment when construction permit was obtained.
Construction permit should be understood as permit for conduction of construction works. This is the kind of document which is provided by the Law of Ukraine “On regulations of urban planning activities” and regulates permit related procedures in the field of construction and Subsection 4.2 of Temporary regulations on registration procedure of rights to real estate which regulates the procedure of rights registration to uncompleted construction. Such permit can be obtained for any construction object but it is required only for objects of 4th and 5th categories of complexity.
In order to perform construction works on objects of 1st, 2nd and 3rd categories of complexity it will be sufficient to register only a declaration about start of construction. Construction of individual house, cottage or summer house which has not more than 2 stories and area up to 300 square meters requires notification of body of the State Architecture and Construction Control about such construction.
In accordance with Subsection 4.3 of Temporary regulations on registration procedure of rights to real estate in these cases it is required to provide a document which proves the fact that the body of the State Architecture and Construction Control was notified. For construction objects of 1st, 2nd and 3rd categories of complexity one shall provide a declaration about start of construction registered by a body of the State Architecture and Construction Control. And for one or two storied buildings that are under construction it will required to confirm the fact that registered letter with notification for a body of the State Architecture and Construction Control was delivered. Besides in this case it is required to provide the approved project documentation for urban construction object and its copy (construction passport is provided in case of individual houses construction).
Besides these documents (and their copies) registration of uncompleted construction in all cases requires provision of a document which confirms ownership right or right to use a land plot on which the object will be constructed. Such documents include state certificate of land ownership, rental agreement, superficies agreement, etc.
These documents along with application for the state registration and receipt of payment for state registration services are filed to the Bureau of Technical Inventory which performs the actual registration. Also registration procedure requires provision of passport (other document which can prove identity) and/or letter of attorney for completion of registration procedures.
This comment was prepared by law firm “Pravova Dopomoga” within practice of Real estate, construction and land law.
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