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Online sale of land has started in Ukraine

Source : 112 Ukraine

Today, the law on electronic auctions on the land market comes into force in Ukraine. State land can be purchased exclusively via online auctions
08:35, 6 July 2021

Open source

July 6, the law on the sale of land plots through electronic auctions came into force in Ukraine. Now sale of the state and communal land plots or rights to them through electronic auctions are enabled.

Trades will take place in a unified electronic trading system in the form of a real-time electronic auction. A contract of sale, lease, superficies of the land plot will be concluded with a person, who offered the highest price for the land plot for sale or the highest payment for its use.

All the details of the organization of land auctions, namely the size, the procedure for payment, and return of remuneration to the operator of the electronic site, will be determined in accordance with the procedure established by the Ukrainian Cabinet.

The term and other conditions for using the site will be indicated in the corresponding decision to conduct a land auction, as well as the person authorized to conclude the relevant agreement.

All lots must necessarily contain photographs of land plots and information about the person who has the pre-emptive right to purchase the land plot.

According to the bill, land tenders will be held in accordance with an agreement between the organizer and the operator of the electronic site, and the amount of payment to the site operator will be set by the government.

The document establishes that the amount of the guarantee fee cannot be less than 30% of the starting sale price of the land plot or the starting amount of the annual payment for the use of the land plot.

Speaking about the lands of state and communal property for agricultural purposes, the starting price should be equal to the normative monetary value, and the price of the other lands of state and communal ownership cannot be lower than the expert monetary value of the land plot.

In addition, one lot consists exclusively of one land plot.

Ukraine’s Cabinet has established some technical requirements for the implementation of the preemptive right to purchase a land plot in the case of its sale via an electronic auction. Information about their participants is not disclosed until the end of the auction.

The tenders' results will be reflected in the electronic trading system and on the Unified State Portal for Land Tenders.

As reported before, from July 1, 2021, Ukraine has enabled an option to legally sell and buy agricultural land. According to the law, ordinary Ukrainians can become market participants until 2024. Legal entities, directly created by the citizens of Ukraine, state and territorial communities would have an opportunity to purchase land from 2024.

In addition, the parliament allowed foreigners to buy non-agricultural land plots in Ukraine outside of settlements.

Earlier, according to the Ministry of Economic Development, Trade and Agriculture of Ukraine, one hectare of land in Ukraine will cost more than two thousand dollars. And according to the forecasts of the Prime Minister of Ukraine Denys Shmygal, the cost of land in 5-10 years may increase from two to five times.

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