UKRAINE Law and Practice Contributed by: Timur Bondaryev, Maryna Sharapa, Andrii Pidhainyi and Olena Yurets, Arzinger
6.13 Tenant’s Ability to Alter and Improve Real Estate The most common approach is that the lessee is allowed to improve the real estate, subject to the lessor’s written consent and pre-approval of design documents. Also, the lessees are often not compensated for inseparable improve - ments of the real estate unless there is a specific arrangement between the parties. 6.14 Specific Regulations The leases of all types of privately owned real estate assets are treated equally. Special treat - ment applies for the leasing of public assets, which is tightly regulated. There is also a special statute regulating land leases, according to which the land is consid - ered and treated as a special real estate asset in comparison to bricks-and-mortar properties. Coronavirus legislation did not establish any distinction between leases of different asset classes. 6.15 Effect of the Tenant’s Insolvency Insolvency proceedings against the tenant can trigger termination of the lease by the lessor. 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations The most common form(s) of security is/are an advance payment (ie, a security deposit) in the amount of one or two months’ rent and/or a bank guarantee. 6.17 Right to Occupy After Termination or Expiry of a Lease The law provides that, if the lessee continues using the real estate for a month after the ter - mination of the lease without the lessor’s objec -
the utilities and the turnover rent – ie, the base rent, OpEx, marketing fee. 6.9 Payment of Maintenance and Repair Common area maintenance and repair costs are usually covered by the category of OpEx, which is charged on top of the principal rent. 6.10 Payment of Utilities and Telecommunications Usually, the utilities used on the premises are paid for to the relevant utilities providers based on metering devices, while the utilities used in common areas are paid for by all tenants, pro The costs of insuring the real estate that is the subject of a lease, and of events causing dam - age, will depend on the negotiations of the par - ties. There have been cases where the lessors demanded that the lessee insure the leased premises, and vice versa. Most commonly, there are no requirements with regard to insured events in lease agreements. The insurance culture is underdeveloped in Ukraine; therefore, the majority of businesses in Ukraine do not have business interruption insur - ance. 6.12 Restrictions on the Use of Real Estate It is quite common for the lessor to stipulate the designated use of the real estate in the agree - ment. There are also certain legal restrictions for different types of real estate. For instance, there are strict restrictions for residential real estate. However, as regards commercial property, the law does not provide for many requirements, except for the general requirements on fire safe - ty, sanitation, etc. rata, to the rented area. 6.11 Insurance Issues
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