Legal support for agricultural enterprises when purchasing land at auctions

Planning to purchase land through a Prozorro.Sale auction? Legal support from Prikhodko & Partners for agricultural enterprises will help you avoid legal risks, properly prepare all required documents, successfully participate in the auction, and register your ownership rights without complications.

How to Buy Land Through Prozorro.Sale?

The purchase of a land plot through Prozorro.Sale is carried out via an open electronic auction. The electronic platform contains listings of state-owned, municipal, and, in certain cases, privately owned land plots, together with information about their area, cadastral number, designated purpose, starting price, and sale conditions.

Before participating in an auction, it is important not only to review the lot description but also to conduct a legal due diligence review of the land plot. Such an analysis helps determine whether there are any encumbrances, court disputes, arrests, cadastral errors, or other legal risks that could affect future ownership or use of the property.

How to Participate in Land Auctions?

Prozorro electronic auctions are conducted through the Prozorro.Sale electronic trading system in real time via the Internet. Both individuals and legal entities that satisfy the legal requirements applicable to the specific category of land may participate.

To take part in a land auction, you must first:

• register on the relevant electronic marketplace;
• complete the verification procedure and submit the required documents;
• pay the registration fee and guarantee deposit;
• after approval, participate in the auction.

The auction itself consists of three bidding rounds, during which participants may improve their offers (the minimum bid increment is 1% of the starting price).

After the auction is completed, the organizer and the winning bidder sign an electronic protocol, which serves as the basis for concluding the relevant agreement. Once all financial obligations have been fulfilled, ownership rights or another property right—such as a lease, emphyteusis, or superficies—is registered, depending on the transaction.

Legal Due Diligence of a Land Plot Before Purchase

One of the most important stages of any transaction is the legal due diligence review of a land plot, which helps identify encumbrances, ongoing court disputes, documentation errors, and other circumstances that may complicate the registration of ownership or the future use of the property.

During the legal review, specialists analyze not only the land plot itself but also the seller, the ownership history, and whether the submitted documents correspond to the information contained in the state registers.

In particular, we recommend verifying:

Particular attention should be paid to the cadastral number, as it serves as the primary identifier of a land plot. Using this number, it is possible to verify information in the State Land Cadastre, the State Register of Proprietary Rights, and search for any related court proceedings.

It is equally important to analyze the designated purpose of the land. For example, if the buyer intends to construct a residential building, it is necessary to ensure that the current land designation legally permits such use.

Although a notary also verifies documents and information from official registers when certifying the transaction, the notary’s authority is limited to confirming the legality of the transaction itself. In contrast, a comprehensive legal due diligence review of the land plot before purchase is significantly broader in scope.

Registration of Ownership After Purchasing a Land Plot

After purchasing a land plot through Prozorro.Sale, it is necessary not only to pay the purchase price but also to properly register ownership rights. The key stages include:

1. The auction winner signs the protocol confirming the results of the land auction, which serves as the legal basis for completing the transaction.
2. Execution of the sale and purchase agreement.
3. Obtaining the required documents:
   • for a standard purchase through Prozorro.Sale, the primary document is the sale and purchase agreement;
   • if the land plot is purchased through an auction conducted within enforcement proceedings, the buyer receives an electronic auction report, while the notary issues a certificate confirming the acquisition of real estate through a public auction.
4. The notary registers the ownership information in the State Register of Proprietary Rights to Immovable Property. From that moment, the buyer officially becomes the owner of the land plot.

Purchase of a Land Plot: When Is It Possible?

A land plot may be purchased either through a land auction or in other cases expressly provided for by law. In particular, certain individuals who hold land under the right of permanent use or lifetime inheritable possession, certain legal entities, and specific land tenants may acquire land without participating in an auction.

If the land plot is leased, the tenant has a pre-emptive right to purchase it, provided that the statutory procedure is followed and the purchase price is paid.

Legal Support for Agricultural Enterprises, Farms, and Agribusiness

Prikhodko & Partners provides comprehensive legal support for the purchase and lease of land plots through Prozorro.Sale. For agribusinesses, such assistance is especially important because land auctions involve numerous legal requirements, and even a minor mistake may result in the loss of time, financial resources, or the right to acquire the land.

We support our clients throughout every stage of the procedure and offer:

• legal due diligence of the land plot before participating in the auction;
• document analysis and legal risk assessment;
• preparation of documents required for participation in land auctions and tenders;
• full legal support throughout the auction process;
• registration of ownership rights after the acquisition of the land plot;
• challenging unlawful refusals.

By choosing Prikhodko & Partners, you will not need to search for different specialists for each stage of the transaction. Our team provides comprehensive turnkey legal support—from the legal analysis of the land plot to the successful completion of the transaction and the state registration of your ownership rights.