How to Buy a Land Plot for Construction in Ukraine?
The topic of choosing a land plot for construction purposes interests many people. Someone intends to buy a plot of land in Ukraine for building a house or a summer house, and someone wants to build a commercial building: a shopping center, an office or even a gas station.
The only problem is how to choose a plot of land and what nuances to take into account so that the land is suitable for your purposes. It’s needless to say that the transaction must be made wisely to prevent yourself from unscrupulous sellers.
Today we will tell you how to choose a building plot and how to protect yourself when buying land in Ukraine.
Real estate requires time and money - the more time you spend on high-quality preparation, the less money you will spend in the process.
Our lawyers offer you not only legal advice, but practical assistance: We will check your land plot and organize a safe purchase transaction.
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Legal advice on the purchase of land to build in Ukraine
So, you have decided to buy an empty plot of land for construction - where do you start?
Of course, the first thing you need to do is to develop a strategy for choosing a plot and to identify clear criteria for choosing land, such as: location, size, neighbors, supply lines, etc.
These criteria are based solely on your personal preferences and financial capabilities. If the plot, for example, is not connected to the supply lines - you will either have to wait for them or to invest additional funds. The same applies to the availability of drinking water on the plot - you should understand the price of a well.
But today we will talk about the legal aspects of buying a land plot in Ukraine and what you should pay special attention to.
Issue 1: A Seller.
A seller of land in Ukraine may be not only a private or legal person, but also the state or local government body. In such a situation, land is sold through an auction, which has its own procedure: ads in the newspaper, auctions, etc. Buying land this way is called a “primary sale” and has its own advantages and disadvantages: the land documents will be most likely in order, but the price may greatly exceed the market value.
Buying land from a private owner will be called a “secondary sale” and has its own pitfalls: first of all, it is the history of the land. This is the way people often try to sell a non-privatized land plot, which means that they are selling not the title to the land, but the right to privatize it. The process of privatizing the land plot takes additional time and money, and is sometimes nearly impossible.
As for the identity of the land seller, and the problems that may arise from this, you must understand exactly who is selling land:
First, you should check whether this person is the owner or a proxy holder. If a person is only a representative, you need to contact the owner and clarify his/her consent to sell the land;
Is the person the sole owner of the land, or is there more than one owner? If there are more than one owner, do they agree to sell the land? The sale of a land plot will require notarized consent of all land owners;
How many years has the owner owned the land? Selling the land too hastily can be a red flag, especially because selling land in less than 3 years after purchasing it poses an additional 5% tax on the owner, which they can try to shove on you.
All this information can be obtained and analyzed by our lawyer, assessing the safety of the transaction with this particular counterparty.
Issue 2: A Land Plot.
There are three “cornerstones”, or essential issues, that can affect a land plot transaction:
Purpose of the land;
The cadastral number of the land plot;
Any restrictions on alienation of the land plot.
For example, if you buy land for construction, the intended use of the land must be for residential or public development. Other land plots will have to be re-registered. This procedure is long, complicated and costly.
If you want to build a summer home, you may also use agricultural land. But you won’t be able to register the house built on such a plot or to get registered therein. By the way, foreigners can not buy agricultural land in Ukraine.
As for the cadastral number and restrictions on land (for example, the land may be in the pledge, or be subject to legal proceedings), these issues can be checked in special registers and, in fact, in the State Land Cadastre.
Issue 3: Documents required for buying land.
To buy land, you and the seller must go to the notary with the following package of documents:
State Certificate of Title (it is not required for every case);
Expert evaluation of the land plot (issued by an independent licensed expert licensed). Our lawyers can help with arranging a land valuation if the seller does not have one;
The passport and TIN of the owner and his/her spouse, if any;
The marriage certificate (or the divorce certificate), if the owner is married. You will also need written consent from the seller’s spouse to sell the land.
In order to accurately assess the condition of the land, you need not only the documents of title to the land, but also the technical passport, as well as documents on the buildings, if any, on the plot.
Remember! The task of a notary is to check the completeness of your documents. A notary will not be responsible or aware of the seller’s past, or of any information that he/she knowingly did not provide. The safety of the transaction depends solely on the quality of the preliminary verification of the property and the agreement.
In addition to the documents, special attention should be paid to the land purchase and sale agreement. In addition to basic information - the price, name and parties, it is important to specify the cadastral number of the plot, as well as to stipulate the terms of payment for the land, the down payment, if any. It is important to consider all the nuances, so as to avoid third parties disputing the agreement. The issue of payment of taxes may be often controversial even at the stage of negotiations - sellers are trying to transfer part of their taxes to the buyer.
Our lawyers will help with the proofreading and preparation of the land purchase and sale agreement.
Issue 4: Critical questions that you, or your lawyer, should know the answers to.
Most of these aspects we have already highlighted above, but let’s represent a clear list of questions that should be answered before you buy a plot of land:
Does the owner have the right to sell you the land?
Does the owner have all the necessary documents to sell the land?
Does the land have the cadastral number and documents to prove it?
Is the land privatized?
Is the land used for the purpose it is intended for?
Are there any buildings on the land and is there documentation for them?
How was the land transferred to its current owner and how is that documented?
Are there any supply lines and how much will it cost to connect them?
Of course, these are just the basic questions. The list of information that the lawyer checks is much longer. You should clearly understand what you’re paying for and what to expect from your purchase in the future.
Legal support services for buying land to build in Ukraine
If you have decided to purchase a plot of land in Ukraine, our lawyers offer you the following services:
Advising on the process of choosing and purchasing land specifically for your case and purpose;
Inspection of land plot prior to purchase;
Verification of documents on land and on the transfer of rights to land before purchase;
Review of the land purchase and sale agreement, assistance in making amendments to the agreement;
Arrangement of the land purchase transaction at the notary in Kyiv;
Assistance in obtaining the State Certificate of Title after the purchase.
The price of legal support services for the purchase of a land plot in Ukraine depends on the amount of services you need: Do you only need to check the plot before buying it, or do you want turnkey services? You can get the price of our services on our service page or by phone from our specialist.
Would you like to buy land for construction in Ukraine? Don’t hesitate to contact us! We will not only help you to confirm the reliability of the property, but will provide legal support services for the entire deal, taking care of its safety.
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