Ukraine: new streamlined procedures for construction, planning and real estate sales

The procedures for construction, planning and real estate sales have been streamlined with effect from 14 October 2008 (or 14 April 2009 in the case of some planning changes).

Construction

Completed construction will now be certified by a Certificate of Compliance to be issued by the State Architectural Construction Inspection, which should speed up the commissioning of finished construction.

The exact procedure for issuing Certificates of Compliance has not yet been introduced, but it is only necessary to now pass one completion commission (the state commission) and not a working commission as well, which should make it quicker for developers to register ownership to completed buildings.

Planning

The ‘City share’ contribution to be paid by the developer in respect of city infrastructure is to be halved, while there are clearer rules about the kind of permit needed to perform preparatory works and the procedure for obtaining it.

The procedure for obtaining a construction works permit has also been changed, with an expanded list of documents to be submitted with the permit application and clarification of the cases in which a developer’s application to obtain the construction works permit can be refused.

Land Code

Lease rights to privately owned land with a maximum term of 50 years can be disposed of through sale contracts, pledge agreements, or exchanged for corporate rights. The Land Code was previously silent about the ability to dispose of land any lease rights.

The procedure has been simplified for formalising title documents to state or municipal land acquired by auction: ownership can be now formalised by a document that describes the results of the land auction, whereas previously this required a resolution of a local council or state administration issued after the auction.

To facilitate much-needed infrastructure development, there is an extended list of state or municipal land plots which may be acquired without an auction procedure. This removes the need for an auction for the purchase or lease of land plots that will be used:

• for public infrastructure such as roads, utilities, airports, oil and gas terminals, power stations etc
• to reconstruct residential districts
• to construct social residential buildings
• to explore for water or natural resources
• by religious organisations
• for art or culture by state or municipal bodies
• for diplomatic missions or international organisations

There is a new procedure for obtaining rights for a maximum of 50 years to state or municipal land for construction purposes (superficies) or agricultural use (emphyteusis), which may now be done by state or municipal land auction. Previously, this was not defined. Unlike private land, it is not possible to dispose of land held by the state or municipality under superficies or emphyteusis.

Law: New law of Ukraine “On Introduction of Changes to Certain Legal Acts of Ukraine Related to Facilitation of Construction Activity”