Transfer of the preemptive right to purchase land

According to the current Ukrainian legislation, certain categories of persons have a priority opportunity to purchase land. For example, tenants of land have this right. Preferential right is based on the priority of one of the parties to purchase the land. However, this right is relevant only in the case of the sale of a plot of land. If we are talking about alienation in another way (mining, donation, etc.), the lessee has no preferential right.

The fundamental right to purchase land: what should you know?

The priority right to purchase land is traced in Article 130-1 of the Land Code of Ukraine. Let’s consider the features of this right on the example of lands that have an agricultural purpose. The following categories have the fundamental right:

1. Persons who have special permits for mineral extraction.
2. Tenants of land.

Important: if there is no subject of the priority right of the first tier, the subject of the second tier can exercise his right to purchase land. For this, it is enough to submit a corresponding application for notarization. It is also worth paying attention to the fact that the right of pre-emption in the process of buying a plot of land can be exercised on the condition that the person is satisfied with the price at which the seller sells the plot of land.

The fundamental right can be transferred by the subject to another person. For this, a written contract is concluded between the two parties. The person is obliged to inform the owner of the plot of land in writing about the implementation of this procedure. For this, the legislator allocates three working days from the moment of state registration of the transfer of this right.

The tenant receives the status of having waived his priority right in the following cases:

1. Absence of a notarized notification regarding the desire to use this right.
2. Refusal to sign a purchase/sale contract for a plot of land with an agricultural purpose.
3. Lack of appearance of the person at the specified time of conclusion of the agreement.

Please note: from January 1, 2024, legal entities do not have the right to purchase agricultural land. However, the Land Code clearly regulates the preferential right to purchase such a plot of land by another person.

Stages of implementation of the priority right to land

At the first stage, information is provided. That is, one person informs other persons about the intention to sell/buy a plot of land. We are talking about an offer/invitation to an offer.

Let’s consider this stage from the side of the tenant and the owner of the land plot. If you, as a tenant, have a priority right to purchase a plot of land, you must notify the owner of your intentions. Perhaps your proposals will seem interesting to the owner of the land. If you are the owner of a plot of land and want to sell it, you need to contact the tenant. Because it is he who has the right to purchase a plot of land. The intention to sell the land is registered with a notary and in the State Register of Real Property Rights. An application and a draft contract are submitted to the notary.

At the second stage, the tenant’s response is expected and the date of conclusion of the contract is set. If the tenant is interested in buying the land, he must notify the notary within a month. As mentioned above, the main condition for this is the matching of the price and the desire of the tenant to buy a plot of land. This stage takes about a month.

The third stage consists in concluding a contract. For this, the tenant and the owner of the land must appear before the notary.

Although the legislator clearly prescribes the procedure for the use and transfer of the preferential right to purchase land, sometimes rather controversial situations may arise. Let’s consider the most common of them. For example, not all valid lease rights have been registered in the State Register of Property Rights to real estate objects. The law does not establish whether it is necessary to check information about the existence of registered lease agreements.

Questions also arise regarding the owner’s intention to sell the plot of land. If he informed the notary about it, the next step is to send the appropriate notice to the tenant. However, if the tenant, due to objective circumstances, could not receive such a notification in a timely manner? Will he be deemed to have waived his preemptive right to purchase the land? In practice, it can be different.

To avoid many problems in the process of transferring the preferential right to purchase land, it is better to enlist the support of a real estate lawyer. Specialists of our Prykhodko and Partners law office provide full legal support for transactions related to the purchase and sale of land.

We provide a full range of services in this direction. The main key to our success is the use of an individual approach to each specific case.

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