The land market is one of the key segments of Ukraine’s economy. Since the lifting of the moratorium on the sale of agricultural land, interest in buying, renting and investing in land has grown significantly. However, newcomers face a lot of specialized terms that often sound unclear. This article will help you to understand the basic concepts necessary to navigate the Ukrainian land market with confidence.
Land plot
A land plot is a part of the earth’s surface with defined boundaries, legal status, cadastral number and designated purpose. Each plot is registered in the State Land Cadastre (SLC).
State Land Cadastre (SLC)
The SLC is a unified electronic database of all land plots in Ukraine. The public cadastral map allows you to check the data on boundaries, ownership, designated purpose, etc.
Cadastral number
A cadastral number is a unique digital code that identifies a land plot. Without it, it is impossible to perform any legal action with the land.
Property rights
Ownership is the right to own, use and dispose of land. It is registered in the State Register of Real Rights (SRRP).
State act on land
A state land certificate is a document that used to certify ownership. After 2013, it was replaced by an extract from the SRRP, but the old acts remain valid.
Extracts from the State Land Cadastre and the State Land Register
Extract from the SLC – confirms cadastral data.
An extract from the state land register confirms the ownership.
No transaction can be concluded without these documents.
Designated purpose of the land
Land use designation determines for what purposes the land plot can be used. The main categories are:
- agricultural land;
- Residential and public land;
- industrial land;
- lands of the water fund;
- lands of environmental protection;
- etc.
Change of designation is subject to a special procedure.
Market value of land
The market value of land is the price of a plot on the open market. It depends on location, infrastructure, demand, area and purpose.
Normative monetary valuation (NMV)
NMV is the state valuation of a land plot for taxation, auctions, and lease payments. It is not the market price, but it influences it.
Land sale and purchase agreement
A land sale and purchase agreement is executed by a notary. It contains information about the parties, characteristics of the land plot, price and terms.
Land lease
Land lease is the transfer of land to another person for use for a specified period (up to 50 years). The agreement is registered. It contains lease terms, payment, and purpose.
Land income declaration
Persons selling or leasing land are required to declare income and pay taxes.
Boundary markers
Boundary markers are physical markers on the ground that delineate the boundaries of a plot. They are installed after land surveying.
Servitude
An servitude is the right to restrict the use of someone else’s land, for example, the right of passage or roadway. It can be personal or public.
Agricultural production area
An agricultural tract is a group of neighboring farmland that is cultivated by a single user. This improves efficiency and reduces the risk of conflicts.
Land auction
A land auction is an electronic auction for the sale or lease of land, mostly state or municipal. They are held through the Prozorro.Sale system.
Conclusion
Knowledge of the basic terms of the land market is the key to competent land management. This will help you avoid legal mistakes and provide confidence in your decisions. If you are dealing with a land plot, be sure to consult with experts and check the data in open registers.
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