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With the launch of the land market, issues of purchase and sale, lease, registration of other rights to land plots began to enjoy significant interest, which led to an increase in the number of contracts. The new legislative framework has built completely different approaches to the work of state authorities, local governments, individuals and legal entities. In such a system, they become the pioneers of the rules of the earth’s market. But in some cases, the subjects, to form a winning situation or advantage, violate the law.

In this article we will try to describe the situation of violation of the rights of landlords, which is allowed by local authorities. We will show this by the example of signing a regular lease agreement for a land plot (for agricultural purposes).

The relevant Law of Ukraine “On Land Lease” in Article 19 provides that when leasing agricultural land for commercial agricultural production, a farm, a personal peasant farm, the term for the contract cannot be less than 7 years and is provided by agreement of the parties. That is, the contract can be for 10 years, but it cannot be for 5 years.

But in practice, local governments, having in their ownership land of such categories and an advantageous position, conclude other agreements. For example, a temporary agreement for the use of a land plot on a lease basis. In fact, even though there is freedom of contract in civil law, this approach still speaks of the conclusion of a lease agreement with all the obligations and essential conditions. In form and text, such a temporary agreement is identical to a lease agreement. But the lines of such a contract are a year. But as we wrote above, according to the law, he must beat for at least seven years.

Why is it so?

And all because of the desire of the local authorities to conduct a “correct” regulatory monetary assessment of the land and rent it out in a year at an auction, having received the maximum rent.

But the temporary contract violates the rights of the tenant, since it is invalid, since its content cannot contradict the Civil Code, other acts of civil legislation, as well as the interests of the state and society, its moral foundations, which is provided for by Article 203 of the Civil Code. The tenant will not even be able to register such an agreement with the registrar and enter the lease right into the state register of property rights to real estate. But at the same time he must pay the rent.

The law provides for the possibility to judicially recognize certain provisions of the agreement as invalid. In fact, it can beat in a way of protection in such situations.

Prikhodko & Partners Law Firm has a whole department of real estate specialists and knows how to help citizens and real estate businesses. Contact us, we will provide full and professional advice to resolve your issue.

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