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[BUYING AND SELLING REAL ESTATE IN UKRAINE]
residential real estate objects such as apartments in the multi-apartment buildings. Under the law, the most of such real estate objects are allowed for sale to investors when the seller (e.g. developer) initially registers a special property right to such objects in the Registry (including to all separate apartments/other residential or non-residential premises in such object if any). Such special property right is terminated after the commissioning of the completed object and the state registration of ownership title to the corresponding real estate object. The special property right is covered by guarantees regarding the protection of the ownership title, including the removal of obstacles to the exercise of the special property right, recognition of the special property right in case it is being disputed, recognition of the ownership title after commissioning the object, etc. Upon conditions and regulations established by laws, the special property right to the object is transferred and re-registered to the buyer. In particular, upon first sale of the object, the special property right to the object is transferred to the buyer upon full payment of the object price by the buyer if earlier transfer of such right to the buyer is not prescribed by SPA. The law also establishes the set of specific regulations related to the sale-purchase of such objects (including requirements to the SPAs) depending on the particular object and sequence of alienation of the object (first/second/next sales). In particular, the SPA for the first sale shall contain, among others, the following essential terms and conditions: main technical characteristics of the real estate object (including description of the main structural elements and engineering equipment, energy efficiency class), graphical representation of the location of the object on the general plan of the
construction site, the term for returning funds to the buyer in case of early termination of the SPA (not more than 60 calendar days from the date of termination of the SPA), the term for returning the overpaid funds to the buyer, if, according to the results of the technical inventory, the actual total area of the real estate object turns out to be less than the area specified in SPA (not more than 60 calendar days from the day of state registration of the ownership title to the relevant real estate object to the buyer), etc. *** The above information is provided for general understanding and information purposes only. Real estate acquisition may also involve other legal and tax aspects. In general, information is provided according to the standard legislation of Ukraine and does not focus on specific regulations that may from time to time be introduced into the legislation of Ukraine due to the martial law introduced in Ukraine since February 24, 2022, in response to the military aggression of the Russian Federation against Ukraine. We strongly advise that legal and tax advisors be involved in order to ensure that each specific case is dealt with comprehensively. If you need any further information on the issues covered by this overview, please contact Mr. Taras Utiralov (utiralov@peterkapartners.ua) or Ms. Halyna Melnyk (melnyk@peterkapartners.ua). PETERKA & PARTNERS is a full-service law firm operating in Central and Eastern Europe providing one-stop access as an integrated regional service. The firm delivers legal services to multinational companies active in the region, as well as to leading local groups, providing them with complex legal solutions with exceptional commercial value.
ILN Real Estate Group – Buying and Selling Real Estate Series
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