Registration of land and related rights in Ukraine after the 1st of January 2012

Since the 1^st of January of 2012 system of land rights registration will be drastically changed.

“Siamese twins” – state registration of a land plot and its ownership will be separated and as expected significantly simplifies. These reforms are related to entry into force of the Law of Ukraine “On state land cadastre” and creation of a single system of registration of rights to real estate in accordance with the law “On state registration of real estate property rights and its encumbrances”. This material shouldn’t be considered as a comprehensive legal advice.

As of today single system of bodies responsible for registration of rights to real estate is not yet formed in Ukraine. In accordance with the law number 1066-VI dated 05.03.2009 rights to a land plot appear since the moment of state registration of such land plot but not since the moment of registration of rights to the plot as provided by Article 125 of the Land Code of Ukraine. But registration procedure is so bureaucratized that registration can last for years.

In accordance with Article 202 of the Land Code of Ukraine there actually exists a double registration of land plots. It is due to the fact that the State Register of land plots consists of Land book which includes information about a land plot and Book of records in which state acts of land ownership and land rental agreements are registered. Thus, the state registers both a land plot (rights to it) and a document which certifies rights to it.

At the same time the Resolution of the Cabinet of Ministers of Ukraine number 1021 dated 09.09.2009 the Land book and Book of records are kept in paper form by bodies of State Agency of Land Resources of Ukraine and their electronic forms are maintained by structure divisions of State Enterprise “Center of state land cadastre”.

As the result during primary registration it is required not only to obtain state certificate of land ownership, order and pay for technical documents related to land-use planning and project of land use, collect a number of other documents but also to spend some time dealing with registrar that will perform double registration. In accordance with Section 6 of Article 126 of the Land Code of Ukraine when right to a land plot is transferred it is required to have it noted on a state land ownership certificate not only by a notary but also by bodies of State Agency of Land Resources of Ukraine which will perform land rights registration function until the 1^st of January 2012. At the same time documents that are provided for such a note will “flow” between State Agency of Land Resources of Ukraine and Center of state land cadastre.

Since the 1^st of January 2012 it will be still required to obtain a state certificate (it will be still issued until the 1^st of January 2013) and develop documents related to land-use planning. But the very procedure of land plot registration and registration of rights to it should become more transparent and comfortable.

In accordance with Article 25 of the Law “On state land cadastre” the only document of the State land cadastre is represented by Land book. Inclusion of information to it will take place at local bodies of the Agency of Land Resources of Ukraine. List of documents that are required to submit for registration of a land plot will be shortened. But the main thing is that registration of a land plot by the Agency of Land Resources of Ukraine will be required for its formation as an object of ownership right.

Rights to this object will be registered by the bodies of the State Registration Service of Ukraine that conducts its activities as a structure unit of the Ministry of Justice of Ukraine. Land book will show information about owners (users) of a land plot based on information about registration of property rights in the State register of property rights. Respectively when rights to a land plot that is already registered are transferred to a new owner it will be required to file documents only to bodies of the State Register.

Of course such system of rights registration also has its inconveniences. It is hard to believe that bodies of the Agency of Land Resources of Ukraine will provide information about registration of a land plot to bodies of the State Registration Service and registration will be performed automatically (even though such exchange is provided by Article 28-1 of the Law on registration of rights). The law on state registration of rights requires “personal” submission of application for the state registration and documents that confirm the right. Thus, it will be required to undergo two registration procedures during primary formalization of rights to a land plot.

The procedure of registration of rights to land is not completely clear. Article 126 of the Land Code of Ukraine demands a note on a state land ownership certificate that will still be valid until the 1^st of January 2013. A note must be made by a body of the State Registration Service but the Law on state registration does not have any provisions regarding such note. It also does not specify which document will certify land ownership after land certificates will be cancelled.

This material was prepared by Kiev law firm “Pravova Dopomoga” within practice of Real estate, construction and land law.