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PREFERENTIAL BUYOUT OF FARM LAND

Since July 2021, the land market has been launched. Among other things, the legislator also allowed the purchase of farm land that is in permanent use, lifelong inherited possession or in a re-arranged lease.

Although the right to buy has been granted, in practice there are still additional issues that need to be clarified in more detail.

Who is eligible for preferential redemption of farm land?

Undoubtedly, such a right is vested in citizens who, at one time, received for permanent use, life-long inherited possession of land plots for conducting a farm (peasant) economy.

At the same time, the heirs of citizens who owned the right of permanent use or the right of lifetime inheritable possession can redeem the farm land of communal (state) property.

It should immediately be noted here that state registration of the right of permanent use for the heir is not a prerequisite for the purchase of a land plot.

There are widespread cases of re-registration of farm land to a legal entity, which was provided to the founder for permanent use to create a farm. In this case, legal entities have the right to purchase the land plot.

The only requirement is that such re-registration was carried out before 2010.

How to buy land from permanent use?

For preferential redemption of land, you need to apply to the local council with a statement of intent to buy out farm land.
In such, it is advisable to indicate the location of the land, its intended purpose, size and area. Simultaneously with the application, it is necessary to submit a copy of the state act for the right of permanent use (lifelong inheritable possession), an extract from the State Land Cadastre on the land plot, an extract from the documentation on the normative monetary value of the plot and a draft land purchase agreement.

The submitted application is considered at the plenary meeting of the council, based on the results of which a decision is made on the purchase of a land plot and the conclusion of a contract of sale (repurchase) of such.

At what price can you buy farm land?

Here, the legislator, protecting the interests of users, determined that the purchase of a land plot is carried out at a price equal to its normative monetary value.

At the same time, the payment under the land plot redemption agreement can be spread over 10 years. In this case, the ownership of the land passes to the citizen after the payment of the first payment.

However, in practice, quite often local ATCs are asked to pay under the contract in full in one payment.

What is the total area of ​​farm land that can be purchased?

When buying land on preferential terms, it should be remembered that until 2024 there is a limit of 100 hectares of the total area of ​​agricultural land plots that may be owned by citizens of Ukraine.

As a result, it should be pointed out that the right to buy out farm land has been granted, however, in the practical implementation of the procedure for buying out a land plot, additional obstacles often occur (such as not re-registering land as communal property or establishing restrictions on land use), which must be resolved with the professional support of lawyers.

Specialists of the Law Company “Prikhodko and Partners” are ready to provide professional support for the purchase of farm land.

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