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The procedure for using a residential certificate.

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Sobianina Olena
Sobianina Olena
Lawyer
Ukraine / Odesa Oblast

i

Reading time: 9 minutes Total views: 92
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Publication date: 16.04.2024

lawyer, 23 years of experience in enforcement.

A housing certificate is an electronic document that confirms the state's guarantees regarding the provision of financing for the purchase of an apartment, other residential premises, a manor-type house, a garden or a country house (including financing for the purchase of such premises/houses that will be built in the future, or investment/financing of its construction) in an amount equal to the amount of money specified in such a document and intended to compensation for damage to property during the war.

In accordance with the Law of Ukraine "On compensation for damage and destruction of certain categories of immovable property as a result of hostilities, terrorist acts, sabotage caused by the armed aggression of the Russian Federation against Ukraine, and the State Register of property damaged and destroyed as a result of hostilities, terrorist acts, of sabotage caused by the armed aggression of the Russian Federation against Ukraine" and the Procedure for providing compensation for destroyed real estate objects, the contract for the purchase of housing using a housing certificate is subject to notarization and has its own procedure for compensation for war damage.

Before the notarization of the relevant contract, the notary checks the presence/absence of state registration of the termination of the compensation recipient's ownership of the destroyed real estate object for which compensation in the form of a housing certificate has been charged. Such verification is carried out using information from the State Register of Real Property Rights.

In the event that the notary establishes the absence of state registration of the termination of the right of ownership of the destroyed object of immovable property, the performance of a notarial act regarding the certification of the contract for the purchase of housing is postponed until the resolution of the issue of the termination of the right of ownership in accordance with the procedure for compensation for damages caused by the war.

At the same time, the notary who was contacted for the certificate of the contract on the purchase of housing, in the event of an application by the recipient of compensation, can also conduct state registration of the termination of ownership of the destroyed real estate object, for which compensation was received in the form of a housing certificate in order to compensation for war damages reparations for war damages.

If the right of ownership of the destroyed real estate, for which compensation was charged in the form of a housing certificate, was not terminated within the period established by law, the notary refuses to perform a notarial act regarding the certification of the contract for the purchase of housing.

In the event that the contract for the purchase of housing concerns an object to be built in the future, or investment/financing of its construction, the notary checks:

existence of bankruptcy cases initiated against the customer;
absence in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations of a court decision declaring a legal entity bankrupt and opening a liquidation procedure;
absence of the fact that the customer of construction is in a state of termination through liquidation;
availability of the construction customer's right to perform construction works in relation to the relevant object.

Also, the notary checks that the territory on which the housing to be purchased is located is not included in the territories of active hostilities or the territories of Ukraine temporarily occupied by the Russian Federation.

The notary simultaneously with the certificate of the contract on the purchase of housing:

1) imposes a five-year ban on the alienation of real estate purchased using a housing certificate;

2) enters information into the Register of damaged and destroyed property: details of the signed contract for the purchase of housing, bank details of the seller (sellers) for payment, the price of housing under the contract, the amount to be paid for the housing certificate, the name and surname of the seller of the real estate object .

Please note that on April 15, 2024, the Law of Ukraine "On Amendments to Certain Laws of Ukraine on Improving the Legal Regulation of Issues Related to the Prohibition of Alienation of Real Estate Objects Acquired (including Invested / Financed) Using Residential a certificate for the purchase of a residential real estate object".

The law makes changes to the legislation that allow:

early removal of the prohibition of alienation imposed upon certification of a contract for the purchase of housing using a housing certificate, in the event of foreclosure on this housing;
to mortgage housing purchased with the use of a housing certificate by the recipient of compensation, in order to ensure the fulfillment of his obligations at the expense of such housing. In this case, the above-mentioned ban is removed by the notary ahead of time at the request of the mortgagee;
to pay the difference between the actual cost of housing purchased using the housing certificate and the value specified in the housing certificate, including through credit funds.

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