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[BUYING AND SELLING REAL ESTATE IN UKRAINE]
the acquirer of such real estate object shall be an essential condition of the SPA, which provides for such transfer of ownership right. Warranties According to Ukrainian legislation, the parties to an SPA may agree on a list of warranties provided by one party or parties regarding the circumstances significant for conclusion, performance, or termination of such agreement. A party who intentionally or negligently provided the other party with false warranties about the circumstances significant for conclusion, performance, or termination of the agreement, is obliged to reimburse the party who relied on such warranties for damages caused by the falsity of such warranties, unless otherwise provided by the agreement. The typical warranties in a real estate SPA are the following: - clear title to the real estate; - the seller is the sole owner of the property; - absence of encumbrances (mortgage, tax lien, prohibition on alienation, etc.); - absence of third-party rights to real estate property (leases, easements, etc.); - absence of pending disputes, litigations in respect to real estate property; - absence of any quality defects; - absence of necessity of capital repair;
- the parties or their representatives has all needed authorisations to enter into real estate SPA; - others. • The parties to the SPA shall also pay attention to other terms and conditions of the SPA such as liability of the parties, payment conditions, bank details of the parties, allocation between the parties of possible expenses related to the SPA (notary fee, bank commissions, etc.) and others. VI. State registration As was noted above, the right of ownership (as well as other rights to real estate), encumbrances of these rights, their commencement, transfer, and termination are subject to state registration in the Register. Usually, the state registration of rights to real estate in the Register is made by the notary, who certifies the SPA, simultaneously with the performance of such notary action. Following state registration of rights to real estate property in the Register, a new owner is provided with the related excerpt from the Register. VII. Costs and taxes (general notes) 1. Natural persons: 1.1. Seller:
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Personal income tax (PIT):
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for certain residential real estate/certain categories of land plots owned for less than 3 years – 5% for certain residential real estate/certain categories of land plots owned for more
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ILN Real Estate Group – Buying and Selling Real Estate Series
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