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Publication date: 11.04.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
In Ukraine, housing rental with the right to purchase is a specific type of lease, which provides for the opportunity of the tenant (user) to purchase the rental object (housing) under certain conditions upon expiration of the lease term. Renting housing with the right to buy is one of the options for running a rental business in Ukraine, which has its own characteristics and is regulated by relevant legislation. Here are the main legal features of such a lease in Ukraine:
Right of Redemption: The agreement provides for the obligation of the property owner (lessor) to transfer ownership of the property to the tenant upon full payment of the rental payments stipulated by the agreement and the fulfillment of other conditions to which the parties have agreed.
Essential terms of the transaction: A lease agreement with the right to buy must define the terms of the buyout, including the price, term and other conditions for early termination of the contract, the rights and obligations of the parties, determine liability for failure to comply with the terms of the contract, etc. These terms must be clearly stated in the contract.
Preparation for sale: If the tenant decides to exercise the right of redemption, the landlord is obliged to take all necessary steps to transfer ownership of the property, including completing the necessary documents and refusing other buyers.
Legal regime of lease: The legislation of Ukraine, in particular the Civil Code and the Law on Housing Lease, establishes general rules and conditions of lease, which also apply in lease with option to buy, with the exception of specific conditions provided for in the agreement.
Housing rental agreement with purchase:
A residential lease agreement with the right to buy is a legal document that regulates the relationship between the owner of the property (lessor) and the tenant (user), who has the right to purchase this housing under certain conditions upon expiration of the lease term. The main components of such an agreement include:
Determination of the parties: The agreement must clearly indicate the parties to the transaction, namely the lessor (owner of the property), who is a legal entity, and the tenant (a person leasing housing with the right to buy), which can only be an individual.
Description of housing: The contract must contain a description of the housing being rented, indicating its address, area, number of rooms and other characteristics.
Lease term: Typically, this agreement provides for a long lease term, but such period should not exceed 30 years.
Terms of the lease: The agreement should define the terms of the lease, such as the duration of the lease, the amount of rent, the procedure and timing of its payment, the rights and obligations of the parties.
Right of Redemption: The contract must contain terms regarding the tenant's ability to obtain ownership of the property at the end of the lease term, including the redemption price and the period during which the redemption can be made.
Purchase procedure: The agreement must determine the procedure and conditions for the purchase of housing, including the necessary actions of the parties, execution of documents, deadlines, etc.
Other terms: Additional terms that define the rights and obligations of the parties that do not contradict the law may be included in the contract. It is important that a residential lease agreement with an option to buy is drawn up in accordance with legal requirements and contains all the necessary conditions to protect the interests of both parties to the agreement. The agreement must be signed by both parties and have the status of an official document.
The procedure for concluding an agreement includes the following steps:
Negotiations and agreement on conditions: First, the tenant and the landlord (owner of the property) negotiate the terms of the lease and the terms of the purchase. They discuss issues such as the duration of the lease, the amount of rent, payment deadlines, buyout procedures and other conditions.
Development of an agreement: After agreeing on the terms, the parties prepare a draft agreement. The contract reflects all the conditions that were agreed upon, including the terms of the lease and the terms of the purchase.
Signing the agreement: Both parties sign a lease with option to buy. This may take place in the presence of a notary to confirm the legal validity of the transaction, but this is not necessary. The main thing is that both parties are familiar with all the terms of the contract and agree before signing.
Development of contracts by a lawyer:
Contracts are rarely drawn up without a lawyer. The lawyer will not only draw up a draft agreement, but will also check the counterparty using registers and conduct a legal analysis of the situation. The services of a lawyer may also be required if a party fails to comply with the terms of the contract, since this may require going to court. So, drafting contracts by a lawyer is a reliable tool for building effective contractual relations.
