Real estate in Ukraine (general issues)
21 December, 2004
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Definition
The Civil Code of Ukraine gives the definition of immovable property as land plots and objects located on them which cannot be moved without their devaluation and change of their target use. The regime of immovable property can be also extended by the law to aircrafts and sea vessels, inland-navigation vessels, space objects and other things the rights thereto shall be subject to state registration.
Ownership
Physical and legal entities shall be the subjects of private property. The state shall own the property including funds possessed by the Ukrainian State. Relevant bodies of the state power shall exercise the property right on behalf and in favour of Ukraine. The municipal property shall comprise property including funds owned by the territorial community.
Real Property Registration and Transfer of Title
A contract for the sale and purchase of a land plot, an integral property complex, a residential house (apartment) or other real property must be executed in writing, certified by a notary and registered at the state registry.
All agreements related to transfer of the title to real estate, irrespective of the legal status of parties to such agreements, are subject to notarization and state registration. These agreements are considered to be concluded (i.e. come into force) only after their state registration. Thus, real estate sales agreements do not generate any rights and obligations until the moment they are registered.
Leases
Under a contract of lease the lessor undertakes to provide the lessee some property for temporary possession and use or for temporary use. The right to transfer property on lease shall be vested with the owner of property or with the person to whom property rights belong. A person authorized to conclude a lease agreement may also be a lesser.
A lessee shall be charged for the use of property; the amount of charge shall be specified by a lease agreement. A lease agreement shall be concluded for the period specified by the very agreement. If a lease period is not specified, a lease agreement shall be considered concluded for an indefinite period. A lease agreement for the building or any other capital structure or a part thereof concluded for the period of one year or more shall be subject to notarization and state registration.
Together with the right to lease a building or any other capital structure or a part thereof the lessee shall be granted the right to use a land plot underneath this structure and the right to use the area adjacent to the building or structure in the size needed to reach the purpose of lease.
