Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine (Regarding the Unified Legal Fate of Land Plots and Real Estate Located on It)” No. 1174-IX, dated 2 February 2021 (“Law”), comes into force.

The Law regulates in detail the transfer of ownership rights and the rights to use a land plot (“Land Plot”) to a new owner (“New Owner”) of the real estate/construction-in-progress asset on such Land Plot (“Object”).

The Law states that, once the New Owner registers its ownership right to the acquired Object, he/she automatically obtains the ownership, lease, emphyteusis, or superficies right to the Land Plot, which the previous owner of the Object (“Previous Owner”) had.

The exceptions apply in cases when the Objects are located on state or municipal Land Plots that:

1. belong to the Previous Owner on the right of permanent use while the New Owner may not acquire the Land Plot based on such right, or
2. are not in formal use.

In such cases, the designated authority, upon request of the New Owner, is obliged to grant the latter the ownership or use the right to the Land Plot.

Previously, the authorities used to take different approaches to the New Owner’s right to the Land Plot: some stated that the right should be transferred automatically, others insisted on effecting additional transactions. We believe that the Law resolves these inconsistencies.