Land lease agreement

The most widespread material right to non-private land plots is the lease of land that is in state or communal ownership. In this article, the specialists of our law firm Prykhodko and Partners will tell you what options there are for land leases in 2024, and what determines the choice of one or another type of lease.

Land lease: possible options for obtaining a land plot for use

Today, there are two land lease options:

1. Conducting land auctions.
2. The decision issued by the relevant land management bodies.

It is the first option – conducting land auctions – that is more of a priority. As for the second option, its use is possible only in exceptional situations:

• Placement of real estate objects (structures, buildings) on a plot of land. These real estate objects are owned by individuals (both individuals and legal entities).
• The possibility of renting land instead of a plot of land purchased from a person for socially useful needs.
• Renewal of terms of operation of land lease contracts.

The full list is provided in Article 16 of the Law on Land Lease.

What are the nuances of signing a land lease agreement in 2024?

Let’s start with the wording of the concept of “land lease agreement”. This is a contract that provides for the mutual obligations of the lessor and the lessee:

1. The lessor must transfer the plot of land for a fee to another person for possession and use for a specified period.
2. The lessee is responsible for the intended use of part of the land in accordance with the requirements of current land legislation and the terms of the concluded agreement.

The land lease agreement is carried out:

• As for private land, I will receive it from the lessor upon agreement.
• In respect of plots of land which are under  communal/government ownership.
• Based on the auction.
• On the basis of civil law contracts.

Among the significant terms of the land lease agreement, the following stand out:

1. Rental object. In particular, the individual cadastral number, size and location of the plot of land are indicated.
2. Date of conclusion/term of validity of the lease agreement.
3. Payment for a leased plot of land.

Its size, indexation, methods and conditions of calculations are indicated. The following are also important: deadlines, the procedure for depositing/reviewing the rent, etc.

If the contract lacks at least one of the above-mentioned conditions, it may be declared improperly concluded in a court of law. According to the land lease agreement, it is considered transferred for use from the moment of state registration of the lease right.

The land lease agreement is concluded only in writing. If desired, this contract can be notarized. Important: the lease term of the plot of land does not exceed 50 years. As for the lease term of plots of land with agricultural purpose, it is at least 7 years.

The terms of the contract can be changed only with the mutual consent of the parties based on the conclusion of an additional agreement. In the absence of an agreement, it will be possible to change the terms of the concluded agreement only in court.

Legal assistance in concluding a land lease agreement

Thus, renting land that is in communal and state ownership is a time-consuming and rather serious matter. Specialists of our Prykhodko and Partners law office will help you get the desired plot of land. We provide a full range of services related to real estate in Kyiv and the Kyiv region. Our real estate specialists are able to solve even the most difficult tasks!

Do you still have questions? We are waiting for a preliminary consultation! To calculate the cost of a lawyer’s services for drawing up a land lease agreement, fill out the form below.