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[BUYING AND SELLING REAL ESTATE IN UKRAINE]
property and pay for it a certain amount of money. The form of the SPA As a general rule, the SPA of real estate shall be concluded in written form and is subject to notary certification. • • Essential and other important terms and conditions of the SPA In order to consider the SPA concluded, the parties shall agree on all essential terms and conditions of such agreement – its subject matter, terms and conditions determined by law as essential or needed for such types of agreements (like price, term, cadastral number of underlying land plot) as well as all other terms and conditions which shall be agreed at the request of at least one of the parties. • The subject matter of the SPA shall be well defined and described, so that it is possible to distinguish the real estate object from among other similar real estate objects. Usually, the SPA of real estate shall contain information on the location of the real estate, its address, purpose, area, and other parameters that allow it to be determined unambiguously. • Usually, the price is set by agreement of the parties, which shall not be less than the value of such real estate property as defined by an independent appraiser. • Transfer of rights to the underlying land plot Following the principle of “unanimous legal destiny of the land plot and the real estate object located on it”, an essential condition of the SPA under which the right of ownership (shares in co-ownership) to the real estate object
(residential an apartment building), other building or structure), the object of unfinished construction connected with the transfer of ownership right to the land plot is acquired is a cadastral number of a land plot, the right to which is transferred in connection with the acquisition of ownership right to such real estate object. building (except If under such real estate SPA, the right shall be transferred only to part of a land plot, the conclusion of the real estate SPA shall be made after the allocation of such part into a separate land plot and assigning a cadastral number to it. The size of the underlying land plot to be transferred shall also be specified in the SPA. On 1 January 2022, new legislative developments related to the transfer of rights to an underlying land plot will come into force. Such legislative developments provide for additional requirements to SPAs, which shall be considered when concluding SPAs and which are the following. A land plot (or a share in co-ownership right to it) must also be the subject matter of the SPA, which provides for the transfer of the right of ownership to the real estate object (residential building (except apartment building), other building or structure, object of unfinished construction or share in the right of co-ownership to such object) located on such land plot owned by the seller of such object. The condition on simultaneous transfer of ownership right to such land plot (a share in co- ownership right to it) from the seller to
ILN Real Estate Group – Buying and Selling Real Estate Series
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