Draft Law of Ukraine

"On Land Market"

Currently, the Verkhovna Rada is already considering alternative draft laws N 2600  introduced by the Cabinet of Ministers of Ukraine and N 2600-1  introduced by MPs I.Tomych and V.Kalinchuk.

The draft regulates relations at the land market in order to create conditions for developing land market in Ukraine, as well as ensuring protection to rights of subjects of land market.

Land market is a system of relations arising between subjects of land market during circulation of land plots as a specific type of goods. Subjects of land market can be legal entities and natural persons. Restrictions related to rights of foreign natural persons and legal entities are set forth by the legislation.

A body of executive power or local self-government body, on whose territory land plots are located, shall have predominant right to purchase these lands from private ownership.

Land plots in state and communal ownership are sold to natural persons and legal entities on competitive basis (land tenders). Announcements on land tenders shall be published in the official printed mass medium of the oblast (republican) body of local self-government at the location of land plots.

Persons residing within the given administrative area shall have the predominant right to purchase land plots for agricultural purposes. A person can not have private ownership for a land plot, whose total square exceeds 20% of the general agricultural square located within the given administrative-territorial area.

Ownership right to a land plot is acquired by the owner of a building on the basis of a civil agreement, while the right to use the land plot – is to be acquired on the basis of a lease agreement. Acquiring the right to rent the building (its separate part) the lessee shall also obtain the right to use the land plot adjoining the building in the amount necessary for achieving the goal of rent. When concluding agreement on alienation of a residential building the whole land plot on which the building is located is considered to be alienated.

Ownership right to a land plot may be suspended without the owner's consent:

• by a body of executive power or local self-government body through buy-out for public needs;
• through confiscation upon a motivated court decision.

Users of a land plot may lose their right to use thereof, if within three years from the moment of destroying the building which was located thereon, no measures have been taken to start reconstruction of the building.