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[BUYING AND SELLING REAL ESTATE IN UKRAINE]
right to it) from the seller to the acquirer of such real estate object shall be an essential condition of the SPA, which provides for such transfer of ownership right. Also, an essential condition of the SPA under which the right of ownership (shares in co-ownership) to the real estate object (residential building (except an apartment building), other building or structure), or the object of unfinished construction connected with the transfer of ownership right to the plot of land is acquired, is a cadastral number of a plot of land, the right to which is transferred in connection with the acquisition of ownership right to such real estate object. If under such real estate SPA, the right shall be transferred only to part of a plot of land, the conclusion of the real estate SPA shall be made after the allocation of such part into a separate plot of land and assigning a cadastral number to it. The size of the underlying plot of land to be transferred shall also be specified in the SPA. 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.
• 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 plot of land) 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 plot of land Following the principle of “unanimous legal destiny of the plot of land and the real estate object located on it” , a plot of land (or a share in co-ownership right to it) must 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 plot of land owned by the seller of such object. The condition on simultaneous transfer of ownership right to such plot of land (a share in co-ownership
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ILN Real Estate Group – Buying and Selling Real Estate Series
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