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LAND LEASE AND LAND LEASE CONTRACT IN UKRAINE

Rental of land in Ukraine it's rather complicated from the legal point of view relations, which are governed by various laws and bylaws of Ukraine. Thus such relations are regulated by provisions of the Civil Code of Ukraine, the Commercial Code of Ukraine and in much more degree by appropriate provisions of the Land Code of Ukraine, the Law of Ukraine "On Land Lease" and numerous specialized Ukrainian bylaws, regulations and numerous judicial precedents of course.

Clause 792 of the Civil Code of Ukraine provides that on the ground of the land rental contract the renter undertakes to transfer the land lot for tenement and enjoyment of the tenant for the specified period of time against payment. The land lot can be rented together with plants, constructions, buildings, water reservoirs, which are located on the land lot or without it. However this clause provides only common regulations for the land rental for private purposes.

Clause 290 of the Commercial Code of Ukraine contains mostly the reference rules to the Land Code of Ukraine, the Civil Code of Ukraine, but mainly to the Land Code of Ukraine and to the Law of Ukraine "On Land Lease". Therewith it also provides that the land rental contract is to be made in written form with required notarization and state registration.

And finally the main provisions of the Land Code of Ukraine, which describe in general what is the land rental, from one hand, and from the other hand divides all Ukrainian lands onto lands with various designation. Each Ukrainian plot of land has its own designation, which stipulates the allowed methods of use of the same or, in other worlds, the legal regime of the land plot of each separate designation and, accordingly, scope of rights and obligations of the land user. However, more detailed information on the land legal issues is provided in special section of our internet-site devoted to the land affairs in Ukraine.

Clause 93 of the Land Code of Ukraine provides that the rental right for a plot of land recognized as the based on the contract term and paid holding and enjoyment of the land plot, which is required for the tenant in order to conduct business and other activity.

The land plots can be given into rental to citizens of Ukraine and corporate entities of Ukraine, to foreign citizens and persons destitute of nationality, to foreign corporate entities, international associations and unions and to the foreign states as well.

A land plot can be rented for the short term – up to five years – and for the long term – up to 50 years.

The rented land plot can be sub-rented if there is appropriate consent of the initial renter of the same to do so (i.e. a land plot can be rented by the initial tenant to the other tenant).

The renters are the landlords of the land plots or other entities, which are duly powered for this by the landlords.

And obviously the main regulations for the land legal relations in Ukraine are provided by the Law of Ukraine "On Land Lease" effective as of October 22, 1998 with numerous amendments.

Clause 1 of the Law of Ukraine "On Land Lease" provides definition of the land rental and stipulates that the land rental is the based on the contract term and paid holding and enjoyment of the land plot, which is required for the tenant in order to conduct business and other activity. In fact, the same definition is provided in clause 93 of the Land Code of Ukraine.

In understanding of clause 3 of the Law of Ukraine "On Land Lease" the rented property is considered to be the land plots, which are legally owned by citizens, corporate entities, owned by municipality or the state.

The land plot can be rented together with plants, constructions, buildings, water reservoirs, which are located on the land plot or without it (the same rule is given in clause 792 of the Civil Code of Ukraine as well).

Possible land renters are listed in clause 4 of the Law of Ukraine "On Land Lease" repeating some provisions of clause 93 of the Land Code of Ukraine. Thus, the land renters are citizens and corporate entities, owning the land plots or other entities, which are duly powered for this by the landlords.

The land renters of the land plots, which are owned by municipality, are the village, the township and the city councils within the frameworks of powers granted to them by the law.

The land renters of the land plots, which are jointly owned by the territorial communities, are the district, the regional councils and the Supreme Council of the Autonomous Republic of Crimea (the Verkhovna Rada of the Autonomous Republic of Crimea) within the frameworks of powers granted to them by the law.

The land renters of the land plots, which are owned by the State, are the district, the regional, Kiev and Sevastopol state city administrations, the Council of Ministers of the Autonomous Republic of Crimea and the Cabinet of Ministers of Ukraine within the frameworks of powers granted to them by the law.

In accordance with clause 5 of the Law of Ukraine "On Land Lease", the land tenants can be corporate or natural (private) persons, who hold and enjoy the land on the grounds of a rental contract.

This clause also provides the following list of the land tenants:

a) the district, the regional, Kiev and Sevastopol state city administrations, the Council of Ministers of the Autonomous Republic of Crimea and the Cabinet of Ministers of Ukraine within the frameworks of powers granted to them by the law;

b) the district, the regional councils and the Supreme Council of the Autonomous Republic of Crimea (the Verkhovna Rada of the Autonomous Republic of Crimea) within the frameworks of powers granted to them by the law;

c) citizens and corporate entities of Ukraine, foreigners and persons destitute of nationality, foreign corporate entities, international associations and unions and the foreign states as well.

Clause 8 of the Law of Ukraine "On Land Lease" regulates issues of the land sub-rental and provides, that the rented plot of land or a part of the same can be sub-rented without changing the designation of such land plot, if this right is directly stipulated in the land rental contract or if there is the written consent of the renter available. However if the renter will not submit his written consent or objection, the rented land plot or a part of the same can be sub-rented by the initial tenant.

Terms and conditions of sub-rental contract should be in accordance and not contradicting with terms and conditions of the principal land rental contract.

Duration of sub-rental cannot exceed duration of the principal land rental. If the principal land rental contract is terminated, then the sub-rental contract considered to be terminated too. The sub-rental contract for a land plot also requires the state registration and can be notarized if parties of the same are desirous to do so.

Clause 9 of the Law of Ukraine "On Land Lease" stipulates the preferential right of the tenant to acquire the land plot.



 
Land affairs in Ukraine:
- Land issues in Ukraine (general overview)
- Land lease and Land Lease Contract in Ukraine


 
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