Lifting of the moratorium on the sale of agricultural land: low start contraindicated





20.12.2010 17:21
Articles about real estate | Lifting of the moratorium on the sale of agricultural land: low start contraindicated Lifting of the moratorium complies with the provisions of Art. 41 of the Constitution of Ukraine that "everyone has the right to possess, use and dispose of their property." However, it should be understood that the implementation of this law need a clear mechanism, which to date in the Ukrainian legislation does not provide. This opinion was expressed lawyer law firm ILF Anastasia Zalesskaya, commenting on the statement by the head of the Presidential Administration Sergey Levochkina about the possible abolition of the moratorium on the sale selhozemel in the first half of 2011. We recall a similar statement Levochkina did last week.

"Lifting of the freeze can cause a number of issues - says Zalesskaya - One concerns the assignment of cadastral numbers of parcels of land. According to paragraph g) Part 2 of Art. 132 of the Land Code of Ukraine prerequisite for agreement on transfer of title to land is the inventory number of this site. But today, a large number of land parcels do not have inventory numbers, and their assignment procedure is rather complicated and lengthy. "
However, with January 1, 2011 comes into force the Cabinet of Ministers of the new time of the order of assignment of cadastral numbers, in which the procedure presented is simpler and more transparent. But the jurisprudence shows that the question of attribution inventory numbers may be delayed for several months, experts say.

Another stumbling block could be the issue that the agricultural lands of state and municipal property is subject to compulsory sale at auction (Article 134 of the Land Code of Ukraine). However, the procedure for conducting such trades are still missing. Resolution of Cabinet of Ministers № 805 was approved in 2010 only a mechanism for selling at auction sites non-agricultural purposes. But 2010 is coming to an end, and the practice of holding land auctions have not had time to form. Thus, the question of the possibility of selling agricultural land from state and municipal property remains open.

"Also, do not forget that before Parliament a bill № 6609 from 30.06.2010, which implies the elimination of land sales during the transfer of lease of land for agricultural production. And if the document is adopted, the feasibility of lifting the moratorium (with current legislative collisions) are generally loses any relevance. Land owners would prefer less painful to transfer land to rent rather than sell it with great difficulty ", - said the lawyer law firm ILF.

According to A. Zaleski, lifting of the moratorium on the sale of agricultural land will not bring overnight, a clear and understandable mechanism of the land market. "Transition periods are always characterized by instability and uncertainty, and therefore before the legislature today is an important task - to prepare all the necessary regulatory framework for the most cohesive start of trading land for agricultural purposes", - underlined Zalesskaya.

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Law firm «ILF» (Inyurpolis). Law Firm ILF («Inyurpolis") was founded in 1994 and provides both legal advice and due diligence in business consulting. For many years the ILF has been consistently one of the leaders of the legal services market and is among the TOP-50 law firms in Ukraine.
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