Publication date: 09.06.2024
Procedure and conditions for the purchase and sale of agricultural land plots
Introduction
The opening of the agricultural land market in Ukraine on July 1, 2021, was a key event in the country's agrarian reform. This has created new opportunities for the development of the agricultural sector, but also requires clear legal regulation to ensure transparency and protect the rights of market participants. In this article, we will consider the procedure and conditions for the sale and purchase of agricultural land in Ukraine.
Main provisions of the legislation
The Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Agricultural Land Turnover" establishes the basic rules for the functioning of the land market. The main provisions include:
Land market participants:
- Individuals are citizens of Ukraine.
- Legal entities established and registered in accordance with the laws of Ukraine, the founders or ultimate beneficiaries of which are citizens of Ukraine.
- The state and territorial communities.
Restrictions on acquisition:
- Foreigners and foreign legal entities are not allowed to purchase agricultural land until a referendum is held.
- Legal entities will be able to buy land from 2024.
- The maximum area of land that can be owned by one person is limited to 100 hectares until 2024, after which the limit increases to 10,000 hectares.
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The procedure for the sale and purchase of land plots
The procedure for the sale and purchase of agricultural land includes several key stages:
Evaluation of a land plot:
- An independent appraisal of the value of a land plot is mandatory to determine the market price.
Checking the legal status:
- Before entering into a transaction, it is necessary to check the legal status of the land plot, including the presence of restrictions, encumbrances, and registration in the State Land Cadastre.
Conclusion of a purchase and sale agreement:
- The sale and purchase agreement must be in writing and notarized.
- The agreement must specify all the terms of the transaction, including the cost, rights and obligations of the parties.
Registration of property rights:
- After concluding the agreement, it is necessary to register the ownership of the land plot in the State Register of Real Property Rights.
Terms of sale and purchase
Financial aspects:
- Market prices for land plots are determined on the basis of an independent appraisal.
- The state provides support to agricultural producers, including preferential loans for the purchase of land plots.
Preemptive right of purchase:
- Landowners must notify tenants of their intention to sell the land. The tenant has a preemptive right to buy the land plot.
Restrictions on land concentration:
- Maximum restrictions on the area of land that can be owned by one person or legal entity have been established.
