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[BUYING AND SELLING REAL ESTATE IN UKRAINE]
KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER UKRAINIAN LAW
І. Types and specifics of real estate in Ukraine The main types of real estate in Ukraine are the following:
is transferred simultaneously to the acquirer. II. Ownership title to real estate There are the following types of real estate ownership:
land plots;
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• other objects that cannot be removed without their depreciation and change of their designation, such as buildings (residential and others), constructions, as well as their separate parts, apartments, premises (residential and non- residential). The regime of real estate property may be extended by law to aircraft and ships, inland waterway vessels, and space objects, as well as other property, the rights to which are subject to state registration. In Ukraine, a land plot and real estate object located on such land plot (building, construction, etc.) are considered as two separate real estate objects. Thus, in practice, there are situations when a land plot and real estate object located on such land plot are owned (or used on other title) by different persons and based on different titles (e.g., a person can own a building and lease the underlying land plot which is initially owned by the state). Recently in Ukraine, a set of developments in real estate legislation have been introduced which aim at implementation, in practice, of a principle of “unanimous legal destiny of the land plot and the real estate object located on it”. Such principle shall ensure that in case of acquisition of the real estate object (a residential building (except an apartment building), other building or construction), object of unfinished construction located on a land plot, into ownership, the right to underlying land plot
State ownership Certain real estate objects are owned by the state of Ukraine (land for nuclear energy and the space system; military land; the land under state railways, objects of state ownership of air and pipeline transport; property of state authorities, state reserves, state entities, etc.). The state exercises its ownership right through the relevant public authorities (Cabinet of Ministers of Ukraine, State Property Fund of Ukraine, state administrations, etc.). As a general rule, state real estate which is not forbidden for sale shall be sold on a competitive basis (auctions). Municipal ownership Under the law, certain real estate objects are owned by local communities (e.g., all land within settlements, except for private and state-owned land plots). As in the situation with state-owned real estate, municipal property (which is not forbidden for sale as well) is sold by municipal authorities on a competitive basis (auctions). Private ownership Real estate objects can be owned by individuals and legal entities on the basis of private ownership, which can be individual or co-ownership (when property is owned by two or more persons (co-owners)).
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ILN Real Estate Group – Buying and Selling Real Estate Series
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