In Ukraine, almost 7 million owners of land shares, and almost the only possible operation with them in the absence of the ability to sell to buy during the moratorium on the sale of land is rent. Two-thirds of the private land owners lease their land to the state or to private agricultural enterprises. How to make a deal on lease land, not to become a victim of the raiders, read our material.
- 1 the Right of ownership on land in Ukraine
- 2 Who can rent out land
- 3 What is land share
- 4 land lease Agreement – main points of the document
- 5. the Cost of land lease
- 6 land rent: the change — 2019
The right of ownership on land in Ukraine
First of all, in order to take land on lease, you need to have legal documents on the ownership of the land. Documents that certify the right of land ownership, there are several. This state acts certifying the right:
- private ownership of land,
- ownership of land,
- the ownership of the land.
These documents were issued before 1 January 2013, in the future began to stand out:
certificate of ownership of real property or an extract from the State register of rights to immovable property registration of ownership.
Also, the document that confirms ownership of the land, may be a contract of sale or certificate of inheritance.
Who can rent the land
Lessees of land from private owners may be state-owned and private structures:
- State administration, city and regional level, including the Cabinet,
- Rural, town, city and regional councils,
- Natural and legal persons, as citizens of Ukraine, foreign citizens and persons without citizenship. To rent land from a citizen of Ukraine can and international organizations, including the state.
- Rent of land and the state and local communities. Rent land for any purpose.
What is the land share
68% of all land are units. Pai is a parcel of land that exists on paper but not available on the ground, its size shall be calculated conditional cadastral hectares. If you allocate a land share in kind, its actual size will depend on the capitalization of land and quality of soil. The location of the unit is determined using a cadastral number.
The land lease agreement – main points of the document
The contractual relations connected with rent of land, the order of registration of lease contracts are determined by the Law of Ukraine dated 16.10.1998 No. 161-XIV “On land lease”. According to this law, the transfer of land is assigned a lease, which is concluded in writing and notarized. What must be spelled out in this document? Standard contract for land lease, a sample of which can be found on the website of the Ministry of justice, contains the following data:
- Passport data, INN, details of the owner of the unit and the tenant.
- Features of the unit, land plot cadastral number, location, size, data from the certificate for the share – number, date of issuance and by whom issued.
- Cadastral plan, where you can find the location of the unit. If not specified cadastral number, you need to seek the production of technical documentation and register in the regional Geokadastr, as well as to register property in the registry of real property rights.
- The contract also must specify the term of the contract. For agricultural land it is from 7 to 50 years. Basically the contract is for 15 years.
- All agreements regarding the settlement of the rent – the rent amount, payment method, terms, indexation of rents and other conditions. The rent should not be less than 3% of the entire area, it may be paid in monetary form and in kind, the harvest.
- The Treaty also prescribes the purpose of area and land use to preserve the quality of the soil. For example, avoid planting annual crops which are able to Deplete soil – sunflower, rapeseed.
- It is necessary to elaborate on the responsibilities of the parties and conditions of termination of the contract in violation of the agreements.
- The contract must be specified encumbrances and restrictions concerning use of the site. It is also important to set the permission or prohibition on a sublease. Tenants have the right to lease the land and only when notice of the owner or obtaining his consent.
To terminate the contract can be by mutual consent or by court order if desired one side.
But with the signing of the Treaty has not yet comes the right to use the leased land. The right to lease the land, and the right of ownership to land plot, right of permanent use and arise from the moment of state registration of these rights (article 125 of the Land code of Ukraine).
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After signing the contract the right to lease land you need to register in the relevant structures of the Executive authorities at the place of location of the site, before a notary public or other accredited organizations for this. The package of documents for registration includes a passport, INN, the document confirming payment of the fee or exemption from this fee and the land lease agreement.
The cost of registration depends on its duration. For registration within 5 working days will need to pay a 0,05 cost of living, faster check-in for 2 days will cost 0.5 times the subsistence minimum, for the registration for 1 day will pay an amount equal to the cost of living and long for the check, within 2 hours you will have to pay a 2.5 subsistence level.
Without signing the lease is invalid.
The cost of land lease
The rent for a share depends on its size, location, quality of the soil. Under the terms of the Tax code from 2017, annual rent price can not be lower than the amount of land tax, but otherwise the amount of rent set by agreement of the parties. Also one of the conditions assessment of the rental value of land is the rule that rental prices should be no more than 3% of monetary evaluation of land.
- For public lands – not more than 1% of its monetary value.
- For agricultural land – not less than 0.3% and not more than 1% of its monetary value.
- If monetary valuation of land is not carried out, the cost of renting such a plot should not be more than 5% of the monetary value of arable land in the region.
- For agricultural land in the absence of a monetary valuation the cost of rent should not exceed 5% and be not less than 0.3% of monetary value of arable land in the region.
To take the land from the tenants of the land plot for breach of terms of the contract. If the lessee payment of rent must apply to the court to repay the debt or to cancel the contract and renew the lease of a land plot to another person.
Rent land: changes in the year 2019.
From 1 January 2019 entered into force the Law “On amendments to some legislative acts of Ukraine concerning the solution of the question of collective ownership of land, improvement of land use in forests, agricultural lands, prevention of raiding and promoting irrigation in Ukraine”, which restricted the exchange of parcels without changing their purpose only within a single array. It is also possible to exchange only equivalent sites, the estimated cost of which does not vary by more than 10%.
Exchange of rights of use of parcels is also done by concluding contracts of lease and sublease. Such contracts do not require the consent of the landlord, but you still need to notify the owner of the unit within 5 days from the date of registration of the sublease.
Changes of 2019 is limited to the term of the emphyteusis. Such term cannot exceed 50 years.