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Perepelchenko Anatolii

Deputy Managing Partner

Lawyer, specializing in real estate, corporate, tax, civil and contract law, as well as litigation.

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Problem real estate: how to enter the legal field?

The concept of unauthorized construction, legal grounds and conditions for recognition of ownership of unauthorized real estate are contained in Art. 376 of the Civil Code of Ukraine, which regulates the relations that arise in cases where the requirements of the law and other legal acts in the process of creating a new thing (spontaneous construction) were violated.
According to Part 1 of Art. 376 of the Civil Code of Ukraine, a house, building, structure, other real estate is considered unauthorized construction if they are built or are being built on land that has not been allocated for this purpose, or without a document authorizing the right to perform construction work or duly approved project, or with significant violations of building codes and regulations.

As a general rule, a person who has carried out or is carrying out unauthorized construction of real estate, does not acquire ownership of it (Part 2 of Article 376 of the Civil Code of Ukraine). However, in some cases, Art. 376 of the Central Committee of Ukraine provides a possibility of recognition by court of the property right to spontaneously constructed real estate.

Thus, taking into account the findings of the Supreme Court on the application of the law in case № 916/633/19, the concept of “object of unfinished construction” (Part 3 of Article 331 of the Civil Code of Ukraine) and “spontaneously constructed object” (Part 1 Article 376 of the Civil Code of Ukraine) have different legal status and different legislative regulation. If the ownership of a “spontaneously constructed object” in some cases can be recognized, then the “object of unfinished construction” – no.

Thus, the recognition by a court decision of a person’s ownership of an object of unfinished construction under no circumstances causes a legal consequence in the form of obtaining such property (a set of building materials) the status of newly created real estate.

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