Draft Law of Ukraine

“On State Registration of Real Estate Rights”

This draft governs relationships in the field of state registration of real estate rights. At the same time, it does not affect state registration of:

• rights to air and sea vehicles;
• rights to inland-waterways vessels;
• rights to spacecrafts and other objects of civil rights covered by the legal regime of ‘real thing’;
• enterprises as business entities.

State registration envisages making relevant entries in the State Register of Real Estate Rights.

According to the draft, state registration of real estate rights is mandatory. However, it is forbidden to conclude any real estate-related civil agreements (alienation, inheritance, mortgage etc.) if the property right to the mentioned estate has not been registered.

The system of state registration bodies consists of:

• real estate rights state registration Department of the Ministry of Justice of Ukraine;
• real estate rights state registration divisions in the Autonomous Republic of Crimea, oblasts, cities of Kyiv and Sevastopol;
• local real estate rights state registration bodies.

Pursuant to this draft, state registration bodies will have the right to collect fees for state registration of rights, encumbrances and provision of information from the State register of real estate rights.

This draft, if passed, will allow to determine, on the legislative level, the procedure for state registration of real estate rights. It should be noted that now such registration is performed in line with the Temporal Provision on the registration procedure of real estate rights that was approved according to Order of the Ministry of Justice N7/5, dated February 7, 2002