Changes in the Law of Ukraine on Urban Planning and Development burden the customer with unusual liabilities and extra expenses - experts

04 March 2013 | Monday

URE Club

In the course of the usual URE Club Legal Committee, held on February 28^th at the President Hotel, the experts studied the changes made in the Law of Ukraine on Urban Planning and Development which came into force on January 1^st 2013 (changes in the construction licensing system) as well as draft decree of Cabinet of Ministry of Ukraine on Demolition of illegally constructed objects. The experts ambiguously assess these both documents and believe that they need a considerable modification.

Thus, among the positive changes in the Law of Ukraine on Urban Planning and Development is the determination of the period within which the detail territory plan should be approved. Today the document approval process should last no longer than 30 days. Also the current version of the Law prescribes the obligatory zoning plan of Coastal Protection Belt and beachfront zone of the water bodies. Earlier such information wasn’t included into the relative documents.

Among the negative moments, the experts noted the possible imposing the additional land management project concerning territory improvement for town planning works on the customer. Thus, the customer is burdened with new and new liabilities of preparing urban documentation that comes into contradiction with the concept of the customer release from the financing of the functions of State bodies and institutions of local government that is realized in the course of the construction reform.

The other negative tendency is the changes made in p.3 article 10. According to it today the customer pays for town planning documentation and for information registration in the cadaster. The specialists believe that such a regulation doesn’t meet neither the market requirement nor logic of the fact how and at whose expense the state bodies should execute their functions.

Commenting the changes made in the Law of Ukraine on the Urban Planning and Development, which came into force on January 1^st, Vladislav Kysil, Chairman of the URE Club Legal Committee, Partner at law firm KPD Consulting noted, «such changes reflect the segment’s requirements incompletely. In particular, among the positive moments we may distinguish the enforcement of the transferability principals of the construction rights and independence (agreed by the changes in the law which came into force) of the part of permission documentation (town planning terms and construction restrictions and technical specifications) from the customer personality». In other words, these changes stipulate that town planning terms (current analogue to ADT) and technical conditions remain effective in case of the customer changing. In addition, the positive aspect is the obligation of GASK (in case of the infringement of the submission procedure) to send back the declaration of the construction work starting or its putting into operation, indicating the reason of return. At the same time, the new changes don’t settle adequately the issue of registration of the declaration submission moment.

The other part of the committee was dedicated to the analysis of the draft decree of Cabinet of Ministers of Ukraine which is going to be used for procedure of illegally constructed objects demolition («the Procedure»). Among the major moments of such a Procedure the specialists distinguish the impossibility to demolish the reconstructed buildings (as the Procedure doesn’t cover the bringing of the objects to the initial state) as well as the Procedure not covering demolition of landscape architecture products, garages and parts of the existing buildings.

After the Procedure analysis, the URE Club Legal Committee recommends to improve the draft decree. The experts agreed that there should be objects characteristics (enabling to understand whether the illegally constructed objects come within the Procedure effect or not) in the document. The Committee notes that currently the Procedure contains more technical than legal characteristics of the objects that make difficulties to identify it. «Such a situation certainly will cause the disputes in determination of object which don’t come within such a procedure» - Vladislav Kysil summarized.

Photo Report on the outcome event

Information

The legal regulation of activity of real estate market players is one of the most important elements of market infrastructure. Recognizing the importance of creating a transparent legal environment conducive to the development of the real estate market in Ukraine, Ukrainian Real Estate Club has organized a standing Committee on Legal Affairs.

Regular meetings of the Committee will be held in facilities that provided by the Club or members of the Club. Ukrainian Real Estate Club provides full cooperation, technical, informational and organizational support to the Committee of URE Club.

The main tasks of the URE Club Legal Committee:

• Systematic work that is aimed at improving the legislation regulating of the property market in Ukraine.

• Facilitation of the members of the Club in resolving the legal and regulatory issues related to the activities of the Club.

The participants of the URE Club Legal Committee members are leading experts in the field of law, representing law firms - partners and members of the Club. In addition to legal experts in the URE Club Legal Committee involves all stakeholders from member companies of the Club. Members of the URE Club Legal Committee from among its members annually at a general meeting of the Committee URE Club shall elect two co-chairs of the URE Club Legal Committee.