Kiev. Ukraine. Ukraine Gate – January 23, 2021 – Economy
Serhiy Konovalov, director of the Land Fund of Ukraine consulting company AgroNews.UA, named 5 legal schemes to circumvent the moratorium on land sales in Ukraine.
The first scheme, according to him, is inheritance, exchange, withdrawal (redemption) for public needs.
“Prohibition of purchase and sale by other means of alienation of land owned by citizens and legal entities for personal farming, as well as land shares (units). There is a right to inherit such lands, to exchange one land plot for another – a mine agreement. In fact, the mine agreement is a legal way to alienate land, as the law does not set mandatory requirements for the exchange of equivalent land plots, “Konovalov said.
Another scheme of the director of the consulting company Land Fund of Ukraine called the land lease agreement.
By law, the tenant has no right to dispose of the land, unlike the owner. However, the parties may enter into a land lease agreement with the right of first refusal to land after the moratorium, – says Konovalov.
In Ukraine, the number of cases of expropriation of land plots by the owner concluding a power of attorney to another person has increased.
Another scheme is the emphyteusis agreement.
In 2019-2020, this method was most often used. Now almost everyone knows and understands it. Under this agreement, the owner on a long-term basis (up to 50 years) transfers his right to use the land. But the disadvantage of this method is that the legislation of Ukraine does not determine the fate of these land plots after the expiration of the emphyteusis agreement, – said Konovalov.
Collateral, as Konovalov adds, is one of the most common ways of alienating land. “According to him, the mortgagee has the right in case of default by the mortgagor to satisfy its claims at the expense of the mortgaged property,” he added.
Use of the land plot without the lease agreement increases the probability of raiding. 5 million land lease agreements have been concluded in Ukraine.
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