Welcome to the U.S.-Ukraine Business Council


Ministry of Justice of Ukraine by its Order No. 324/5 dated 17 February 2010 (the "Order 324") introduced changes into the procedure for registration of ownership rights to real estate, stipulated by the Order of the Ministry of Justice of Ukraine "On approval of Temporary Regulations on Procedure for State Registration of Ownership Rights to Real Estate" No. 7/5 dated 7 February 2002.

Please find below a brief overview of the major changes.

1. The recent changes provide for a possibility to a mortgage holder of real estate to register its ownership right to the mortgaged real estate based on mortgage agreement. In order to qualify for such registration the mortgage agreements should be concluded or amended after 14 January 2009 and should contain a reservation on a possibility to enforce the mortgage.

The changes stipulate a list of documents to be provided by the mortgage holder in order to register its ownership right to real estate based on the mortgage agreement as mentioned above, specifically:

▪ A copy of a written request to remedy violation of obligations, sent by the mortgage holder to the mortgagor. Such request must contain (i) brief description of violated obligations, (ii) demand to fulfil the obligations within a period of not less than 30 days and
(iii) notification on mortgage enforcement in case of non-fulfilment of the demand.

▪ A document evidencing expiration of a 30-day period from the moment of receipt of the written request of the mortgage holder by the mortgagor.

▪ Appraisal report of mortgaged real estate.

▪ Excerpt from the State Register of Mortgages.

▪ Excerpt from the Unified Register of Prohibitions on Alienation of Real Estate.

2. The changes set forth the procedure for state registration of construction in progress (unfinished construction). Specifically, in order to perform such registration the interested person should provide to the Bureau of Technical Inventory (i) application for registration,
(ii) documents evidencing rights to the land plot underlying such real estate and

(iii) construction permit (permit for performance of construction works).

3. According to the changes the ownership certificate as well as the Register of ownership rights to real estate shall indicate the owners of state and municipally owned real estate, ie the State of Ukraine represented by relevant state authority as an owner of state owned real estate and respective territorial community represented by a respective local authority as an owner of municipally owned real estate. Should the real estate be in use of legal entities under the right of economic management (hospodarske vidannia) or operative management (operatyvne upravlinnia), the Register of ownership rights to real estate as well as ownership certificate shall indicate such rights.

4. According to the changes it will not be possible to register ownership rights to real estate based on decisions of an arbitration (tretejsky sud). Such amendments were introduced in order to bring the procedure for registration of ownership rights to real estate in line with recent changes in Ukrainian legislation, which excluded real estate related disputes from the competence of the arbitration (tretejsky sud).

The Order 324 is registered with the Ministry of Justice of Ukraine on 18 February 2010 and came into force 5 March 2010.

Please do not hesitate to contact us should you have any questions on the above.

Natalia Kochergina, Partner

T +380 44 490 9563 E natalia.kochergina@dlapiper.com

Anastasiya Bolkhovitinova, Senior Associate

T +380 44 490 9576

E anastasiya.bolkhovitinova@dlapiper.com

DLA Piper Ukraine LLC is part of DLA Piper, an international legal practice.

Global Real Estate Law Firm of the Year 2009 (Who's Who Legal Awards 2009). Real Estate Law Firm of the Year 2009 in Ukraine (Legal Awards 2009).

Kyiv switchboard: +380 44 490 9575

The matters covered in this newsletter are intended as a general overview. This newsletter is not intended, and should not be used, as a substitute for taking legal advice in any specific situation. DLA Piper Ukraine LLC will accept no responsibility for any actions taken or not taken on the basis of this newsletter. If you would like further advice, please contact Real Estate Team at +380 44 490 9575.

LINK EN: http://www.usubc.org/reports/Changes_of_The_ Procedure_of_Registration_of_Ownership_Rights_to_Real_ Estate_ENG.pdf
LINK RU: http://www.usubc.org/reports/Changes_of_The_ Procedure_of_Registration_of_Ownership_Rights_to_Real_ Estate_RUS.pdf
LINK UA: http://www.usubc.org/reports/Changes_of_The_ Procedure_of_Registration_of_Ownership_Rights_to_Real_ Estate_UKR.pdf