Land lease in Ukraine

The main laws of Ukraine, which regulate the issues of land lease, are the Land Code of Ukraine effective as of 1 January, 2002, and the Law on Lease of Land of 2 October, 2003.

The Land Code of Ukraine permits to lease land plots under state and municipal ownership as well as under private ownership.

Non-residents have the same rights to land lease as Ukrainian residents, there are no special limitations for them.

Under the Land Code leases may be either short-term (no more then five years) or long-term (no more than 50 years).

Land plots under state and communal ownership are leased out on the basis of a decision by the state executive body or local government by concluding a lease agreement for the land plot. Land plots under ownership of citizens or legal entities are leased out on the basis of a lease agreement between the land plot owner (lessor) and a lessee.

Under the law a lease agreement is to be concluded in writing. It should contain the following information:

• the object of lease (location and size of the land plot)
• the term of lease
• the lease rent (amount, indexation and payment procedure)
• the purpose and conditions for the land use and preservation
• conditions and terms for transfer of the land plot to the lessee
• conditions for returning the land plot to the lessor
• restrictions and encumbrances on the use of the land plot
• the party bearing the risk of damage or destruction of the lease object or its part
• the responsibilities of the parties

If a lease contract does not contain any of the above information, it is considered to be invalid under the law.

A land lease agreement has to include the following documents as its integral part:

• the plan of layout of the land plot
• a cadastral plan of the land plot reflecting all restrictions (encumbrances) and servitudes
• the act of demarcation of land plot boundaries in kind

A land lease contract is a subject to notarization and state registration. However, the law does not stipulate the obligatory notarization of a lease agreement. It can be certified by a notary upon request of the parties. Notarization is executed at the location of the land plot.

Under the law a land lease contract becomes effective only after its state registration. The state registration is carried out by the local district department of land resources. The following documents are required for state registration:

• the application for registration
• the land lease agreement
• the plan of layout of the land plot
• the decision of local authority on lease of the land plot

Thus, the right to lease land is certified by a lease contract, which is registered according to legislation of Ukraine.

The law also allows the lessee to sublet the land plot upon consent form the lessor. A sublease contract is to meet the same requirements stipulated by the law as a lease contract and is also a subject to state registration with the local district department of land resources.

The above is intended to provide a brief guide only. It is essential that appropriate professional advice is obtained. Our company will be glad to assist you in this respect. Please do not hesitate to contact us.