PROBLEMATIC ISSUES OF LAND LEASE AND SUBLEASE LAND

  Lease and sublease issues are precisely regulated by law, namely the Law of Ukraine “On Land Lease”, the Land Code of Ukraine, and the Civil Code of Ukraine. Simple and understandable rules can lead to a dead end on either side or lead to a legal depreciation of the contract. Let us dwell on the changes that have been adopted on rental issues and analyze possible problematic issues.

What have changed?

  Many lawyers will agree that there are positive changes in the law regarding land leases. This may include:

⦁ The system of registration of rights to lease a land plot can be implemented using electronic registration.

⦁drawn up The sublease agreement between equivalent plots can only bewithin one village council with an error of 10%.

⦁ The sublease agreement is carried out only by agreement with the landlord and with a notarized notice in writing.

Despite the positive changes, there is still something to work on.

“Automaticity” in the transfer of sublease

 The transfer of lease rights has always been controversial. Such a system would be very convenient for both parties. The legislator even appropriately designated some “ground” for the “automatic” transfer of rights: 

⦁ Lease rights terminate upon the acquisition of a building, residential building or structure located on the entrusted land.

⦁ Premises, structures and houses that are transferred to use, after acquiring ownership of these objects, guarantee the buyer the right to use the land.

These land rights are not secured by supplementary agreements. The legislator clearly indicated that in the case of the commission of one power, the third one is automatically considered to be perfect. At the same time, some rules of the Land Code of Ukraine must be taken into account:

⦁ Entry into the ownership of land from the category of communal or state property is possible only by decision of the local authority in the territory of their jurisdiction where their powers are exercised, or as a result of an auction.

⦁ The right of ownership terminates after the acquisition by another person of real estate built on this site. In other words, the contract suspends the lease, but does not completely terminate it.

Thus, theoretically, there is automation of the process of transferring lease rights, but its perception remains at the level of local self-government bodies and state bodies. A good option could be the implementation in Ukrainian legislation of the grounds for re-registering the lease on the basis of transfer of ownership over the property located on it.  

Used the land for other purposes - they violated the contract. Is it true?

  There are questions of ship's practice regarding the early termination of the land lease due to the fact that the lessee does not use it. This practice takes place if the lessor completes it, then not using its land leads to deterioration or destruction of the property. 

In fact, not using a land plot is not a violation. A direct violation can only be that the land is used in violation or for other purposes. In this case, it is important not to allow a conflict only for the intended purpose; otherwise, taking care of the soil and non-use of the leased land is not an offense.