Assess the price of the land
Agency: Legal entities which are licenced by the State Center of the Land Cadastre
The document on expert evaluation of the price of immovable property can be provided by experts certified by the State Property Fund of Ukraine. Such experts have access to evaluation software and record the price at the State Property Fund. Expert evaluation of the price of immovable property is required for tax assessment purposes.
Time and cost: 2 days, UAH 1,000 (Average price charged by experts certified by the State Property Fund of Ukraine to assess the price of land)
Obtain the extract from the State Center of the Land Cadastre
Agency: State Service for Geodesy, Cartography and Cadastre – (Derzhgeocadastre)
The extract from State Land Cadastre contains full information about the land plot (owner, location, use restrictions, encumbrances etc). The notary may not attest the agreement without such extract. The procedure is governed by Article 38 of the Law ‘On State Land Cadastre’ and Paragraphs 162 – 186 of the CMU Resolution No 1051. While the CMU Resolution No 1051 allows the notary to obtain the extract electronically, this option is not available for technical reasons.
The Seller shall submit the following documents to obtain the extract:
- Application in accordance with established form;
- Document confirming payment of fee for issuance of the extract;
- Document confirming powers of the person to request and obtain the extract.
In addition to the above documents, the Seller shall present original document confirming ownership rights to the land plot (e.g. a state act of ownership rights) and personal identification document. The extract is valid for 3 months.
From 31 August 2015 notary has on-line access to the State Land Cadastre and includes cost of obtaining the extract from the State Land Cadastre into the notary fees.
In addition, the extract from the State Center of the Land Cadastre can be also provided through Administration Service Center. In this case an applicant may order the document (excerpt from the State Land Cadastre about a land plot) online at http://map.land.gov.ua, but will have to visit the Administration Service Center in order to receive the document.
Time and cost: 10 days, UAH 100 (5% of the living wage of UAH 1921, rounded to the nearest 10 UAH)
Notary registers ownership rights for seller in the new State Register of Property Rights to Immovable Property
Agency: Notary
From January 01, 2013, a new State Register of Property Rights to Immovable Property (“Register of Property Rights”) has been launched. Unlike the State Land Cadastre, which automatically absorbed information about all existing land plots from the (no longer active) State Register of Lands, the Register of Property Rights does not contain information about the ownership rights to immovable property which have been registered before January 01, 2013. For this reason, prior to execution of the Property sale and purchase agreement, the Seller has to register ownership rights to the Property in the new Register of Property Rights.
Starting from January 01, 2016 registration of ownership rights for seller in the new State Register of Property Rights to Immovable Property is not mandatory. The notary may skip this step and proceed directly with the registration of the ownership right of the buyer although the property to be acquired has not been registered with the Register of Property Rights. However, the procedure is still widely implemented in practice.
Procedures 3-7 are being completed simultaneously at the notary’s office.
Registration of Seller’s ownership rights to the Property is performed by the notary attesting the sale and purchase agreement.
The Seller shall provide to the notary:
- Ownership documents to the Property;
- Application in accordance with established form;
- Documents confirming payment of registration fees.
The notary:
- Checks the Seller’s ownership documents;
- Records Seller’s ownership rights in the Register of Property Rights; and
- Issues an extract from the Register of Property Rights confirming Seller’s ownership rights to the Property.
Time and cost: Less than 1 day (online), UAH 1,880 (UAH 1500 notary fee + UAH 190 for the initial registration of the land in the new registry of ownership rights + UAH 190 for the initial registration of the warehouse)
Obtain the extract from the State Register of Encumbrances over movable property
Agency: Notary
The notary will verify through this procedure that the tax authorities have not registered a security interest over the real property. Since January 2013, the notaries can obtain this information online.
Time and cost: Less than 1 day (online), UAH 80 (4% of living wage of UAH 1921, rounded to the nearest 10 UAH)
Check for encumbrances at the State Registry of Property Rights on Immovable Property
Agency: Notary
Notary searches the former State Register of Ownership Rights to Immovable Property, State Register of Mortgages, State Register of Immovable Property Alienation Bans and State Register of Encumbrances over Movable Property.
From January 01, 2013, three state registers containing information about encumbrances on immovable property:
- State Register of Mortgages;
- State Register of Immovable Property Alienation Bans; and
- State Register of Encumbrances over Movable Property (in respect of tax liens) – are inactive. These registers serve only as a source of information for the notary who transfers the relevant encumbrances from these registers to the Register of Property Rights upon first-time registration of ownership rights to immovable property in the Register of Property Rights. Therefore, to verify encumbrances on the property ownership rights to which have been registered in the Register of Property Rights, the notary will search only in this register. This procedure takes one day and is performed on the same day on which the Property sale and purchase agreement is executed, prior to the execution of the agreement.
Time and cost: Less than 1 day (online), UAH 240 (UAH 80 for the Seller’s LLC + UAH 80 for checking against encumbrances on land + UAH 80 for checking against encumbrances on warehouse. (4% of living wage of UAH 1921, rounded to the nearest 10 UAH))
Prepare and notarize the sale agreement (land and building)
Agency: Notary
The sale purchase agreement of the building is notarized by a private or public notary. Notary’s fees are agreed among parties. There could be one single agreement underpinning both sale of building and sale of land or be two separate agreements: the sale of building (warehouse) and the sale of land parcel. Parties can prepare the sale agreements by themselves before notarization, but usually the notary prefers to use his standard proforma.
State Duty (fee) is paid to the notary and equals 1% of the transactional value of the building. The buyer of the building will also pay a special assessment in the amount of 1% of building’s transactional value to the State Pension Fund. The buyer can make the payment to the State Pension Fund prior to the notarization of building sale agreement or provide the notary with the money to make such payment.
The documentation shall include:
- Ownership documents
- Founding documents of the company
- Decision with respect to the sale of the building (if necessary)
- Extract from the State Land Cadastre,
- Extracts from the Unified State Registry of Legal Persons and Physical Persons – Entrepreneurs (documents – copy of the passport and application, issuing authority – any State District Administration in the City (but it is recommended to obtain it in the administration in which respective legal person was registered))
- Act of evaluation of parcel of land, powers of attorney (if necessary)
- Notary certifies agreement, makes inscription on the State Certificate on Land Ownership as to the transference of title over parcel of land to new owner, registers information as to the transaction in the Unified State Registry of Transactions and issues an extract from this registry on above mentioned transaction.
Time and cost: 1 day, UAH 64,628.93
- Notary fee for the land (paid by the buyer): UAH 1,500
- Notary fee for the warehouse (paid by the buyer): UAH 1,500
- 1% of the value of the land;
- 1% of the value of the warehouse;
- 1% of the value of the warehouse (NOT THE LAND, only the building) for the pension fund contribution.
Notary registers Buyer’s ownership rights on the property in the Register of Property Rights
Agency: Notary
From January 01, 2013, the registration of ownership rights to immovable property (other than newly constructed building/newly allotted land plot in some other cases) is performed by notaries attesting the sale and purchase agreement (Articles 3.5, 9 of the Law of Ukraine “On State Registration of Property Rights to Immovable Property and Their Encumbrances”).
Following notarial attestation of the Property sale and purchase agreement, the notary shall register Buyer’s ownership rights to the Property in the Register of Property Rights. The procedure of registration is governed by Articles 15-24 of the Law of Ukraine “On State Registration of Property Rights to Immovable Property and Their Encumbrances” No 1952-IV of July 01, 2004, as restated and amended, and the Resolution of Cabinet of Ministers of Ukraine No 703 dated June 22, 2011, as amended (“CMU Resolution No 703”). The registration is performed by the notary based on the Buyer’s application (in accordance with established form) and the Property sale and purchase agreement. Upon registration of Buyer’s ownership rights to the Property, the notary issues an extract from the Register of Property Rights for the Buyer.
Time and cost: Less than 1 day (online), UAH 3,341.6
- Notary fee: UAH 1,500
- UAH 730.8 administrative fee for the land ownership transfer (adminsbor)
- UAH 730.8 administrative fee for the warehouse ownership transfer (adminsbor)
- UAH 190 (land) registration fee
- UAH 190 (warehouse) registration fee
