L&M Finance Group
2020-01-17 15:03

LAW ON THE FIGHT AGAINST RAIDING COMES INTO FORCE

On January 16 of this year, the Law of Ukraine 340-IX “On Amending Certain Legislative Acts of Ukraine Regarding Counteraction to Raiding” entered into force. This law introduces amendments to a number of legislative acts and strengthens the requirements for state registrars of property rights. In particular, among the key innovations, the following should be highlighted:
  1. The law establishes in what cases a land plot ceases to exist as an object of civil rights:
— division or association of land plots;
— the abolition of state registration of land on the basis of a court decision;
— if the property right to the land registered in the State Land Cadastre in accordance with the Law "On the State Land Cadastre" was not registered during the year due to the fault of the applicant.
  1. The right of the owner of real estate to establish and cancel the requirement of notarization of a contract the subject of which is property or part of it is fixed. The establishment and cancellation of such a requirement is a unilateral transaction, which is subject to notarization. Moreover, information on the requirement of notarization of transactions with such property is an encumbrance of property rights to real estate and is subject to state registration.
  2. The State Register of Property Rights in Real Estate will contain information regarding the right to renew:
— land lease agreement;
— agreement establishing a land easement;
— an agreement on the provision of the right to use a land plot for agricultural needs or for development. If a party wants to use the right to refuse to renew the contract, it will be obliged, among other things, not later than 1 month before the expiration of the contract to apply for the exclusion from the State Register of Property Rights to Real Estate of the statements on the right to renew the contract.
  1. The state register of rights will also include information on the price of immovable property, the value of rights or the size of the fee for using another's real estate on the basis of documents submitted for such registration. It is important to note that such statements can only be provided to the owner of the property, as well as to state bodies and local authorities for the exercise of their powers defined by law.
  2. The USR may also make statements regarding the requirement of notarization of a transaction, the subject of which is the share of the participant in the authorized capital of the relevant legal entity or the cancellation of such a requirement, as well as the requirement of notarization of the authenticity of the signature of such a participant when he makes decisions on the activities of the relevant legal entity.
These innovations will perform not only an informative function for all users of state registries, but can also become a kind of barrier to a number of transactions without notarization of identity, thereby providing additional protection in the field of registration of property rights and minimizing the risks associated with raider attacks on property.