Real Estate 2024

UKRAINE Law and Practice Contributed by: Timur Bondaryev, Maryna Sharapa, Andrii Pidhainyi and Olena Yurets, Arzinger

for the Construction Sector, launched in 2021. This system allows for automation of processes and the elimination of human influence on deci - sion-making processes in the industry. In December 2022, a new law introducing urban planning reform was adopted. It provides for the digitalisation of administrative and other ser - vices in the field of urban planning, and for the introduction of private urban planning control. However, the law still awaits being signed off by the President of Ukraine (as of March 2024), and many discussions regarding the changes proposed by this law are ongoing. Urban Planning and Land Decentralisation Reform Another important reform that was implemented in 2021 provides for: • transferring previously government-owned land to local municipalities; • simplification of changing the designated use of land plots and related procedures; • approval of detailed plans of territories out - side settlements by municipalities instead of local state administrations (which are central government bodies); and • the introduction of a new type of urban plan - ning document – a complex plan of spatial development of the community, and numer - ous other changes in urban planning. Simplification of the Construction of Transport Infrastructure Facilities Due to the full-scale invasion of Ukraine by Rus - sia and the need for business relocation in 2022, a reform was introduced that provides for the simplification of the construction of transport infrastructure facilities. As a result, a number of facilities were built – in particular, river ports (ter - minals) on the Danube River, roads, multimodal

terminals and complexes near the borders with the EU.

2. Sale and Purchase 2.1 Categories of Property Rights

Freehold and leasehold are the main titles. There are, however, some “exotic” title forms, inherited from Soviet times, which sometimes emerge in transactions. Among the new instruments are transactions with special property rights to construction in progress, which have recently appeared on the Ukrainian real estate market and have not yet gained significant popularity. 2.2 Laws Applicable to Transfer of Title The main laws applicable to the transfer of title of real estate are: • the Civil Code of Ukraine; • the Commercial Code of Ukraine; • the Law of Ukraine “On State Registration of Property Rights to Immovable Property and Their Encumbrances”; and • the Law of Ukraine “On Privatisation of State and Municipal Property”. Special treatment of investment transactions involving residential properties is governed by the Law of Ukraine “On Investment Activity” and the Law of Ukraine “On Financial and Credit Mechanisms and Property Management During Residential Construction and Real Estate Trans - actions”. 2.3 Effecting Lawful and Proper Transfer of Title Transfers are most commonly effected by enter - ing into sale and purchase agreements or via other bilateral documents (eg, acts of transfer and acceptance for contribution to share capi -

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