GENERAL RULES OF CERTIFICATION BY NOTARIES OF DEEDS FOR FOR ALIENATION OF OBJECTS OF UNFINISHED CONSTRACTION

 In order to clarify this issue, we should first of all refer to the general provisions contained in the Civil Code of Ukraine. In particular, Article 331 of the CC regulates the acquisition of ownership of unfinished construction. In the article it is stated that before the completion of the construction (property creation) the person is considered to be the owner of the materials, equipment, etc., which were used in the process of this construction (property creation). If necessary, the person mentioned in the first paragraph of this part may conclude a contract for the unfinished construction object after the state registration of the ownership of it in accordance with the law.

 Thus, it is impossible to alienate an unfinished building that has not been registered.

 The registration of ownership of such objects is governed by the General Law of Ukraine “On State Registration of Property Rights to Real Estate and their Encumbrances”, which states in Article 27-1 that state registration may be conducted on the basis of:

- submission of necessary documents (Part 1 of Article 27-1 of the said Law);
- the contract;
- judgment.

 Previously, the court's decision was the sole basis for acquiring ownership of such objects.

 State registration is carried out according to the rules set out in the Procedure of state registration of real rights to real estate and their encumbrances, approved by the Decree of the Cabinet of Ministers of Ukraine of December 25, 2015 №1127.

 Important provisions for the alienation of an unfinished construction object are also contained in the Land Code of Ukraine. Article 120 provides that in the case of acquisition of ownership of a dwelling house, building or structure owned by another person, the right of use and the right of use of the land on which these objects are located shall be terminated. A person who has acquired ownership of a dwelling house, building or structure located on a land plot owned by another person shall transfer ownership of the land or part of the land on which they are located, without changing its intended purpose.

 If such a site was in use, then the right of use is transferred to the acquiring person under the conditions that the previous user has shoe.

 BUT: the unfinished building of the CC does not directly qualify for the category "real estate", so when alienating such objects to the acquirer does not automatically transfer ownership of both uses of the land.

 These norms are taken into account by the Order of the Ministry of Justice of Ukraine dated February 22, 2012 №296 / 5, which approved the Procedure of committing notarial acts by notaries of Ukraine (hereinafter - the Procedure). Part 2 Chapter 2 Part 4 sets out the rules for certifying contracts for the alienation of work in progress:

- may be concluded provided that the ownership of it is registered;

- when certifying the contract on the alienation of an object of unfinished construction, a notary is provided with a document on the basis of which the construction is carried out (permit to perform construction works, a declaration on the commencement of construction works, construction passport, etc.), and a document confirming the right to land (can be the right of ownership or use);

- a notary receives information from the State Register of Real Property Rights for certification of the contract of alienation of an object of unfinished construction;

- certification of contracts for the alienation of unfinished construction works is carried out by a notary, in compliance with the general requirements of the legislation applicable to the alienation of real estate.