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Procedure of state registration of property rights and their burdens set forth in new draft doesn’t solve the most burning problems arisen in the course of the effective new property registration system. Besides, the draft is an attempt to initiate voting approach to the registration of property of different area. Such a conclusion was made by the participants of the regular session of the URE Club Legal Committee held on August 29th at the President Hotel.
One of the main negative aspects of the new registration of property rights in the country became the practice to transfer the authority to register commercially attractive objects from local registrar to the headquarters of the Ukrainian State Register. Experts state that, according to the Ministry of Justice order No 607/5 dated 02.04.2013, the Ukrainian State Register in particular is entitled to register property objects with area more than 5 sth. sqm and some other objects categories. However, according to the participants of the committee, voting approach to the register of the objects is groundless in terms of law. So, it’s worth mentioning that draft resolution of the Cabinet of Ministers of Ukraine «on changes (statement in the new draft) of the state property rights registration procedure» is regular attempt to include functions of the headquarters of Ukrainian State Register, which operates on the voting base, into legal environment.
«I think there shouldn’t be any difference between objects with area of 5 sth. sqm and more in legal practice as from the legal point of view these objects have no difference and to include them into separate groups is improperly. Such a voting approach is unacceptable for constitutional state» - Chairman of the URE Club Legal Committee, partner at law firm «KPD Consulting» Vladislav Kysil believes.
The participants of the URE Club Legal Committee also pointed to the fact that there was no attention paid to the issue at least of the proper reflection of the changes in the technical condition of the object. «Especially such a problem is actual for banks which must understand whether statement in the register corresponds to the reality. Inconformity between data in the register and technical condition of the object may lead to the incorrectly accrued real estate taxes» - the committee states.
Another negative moment for the mortgagee is procedure of property right abandonment stipulated by the draft. Termination of the property right together with all derivative rights (including mortgage) in this case may be used by mortgagor against banks’ interests.
The conclusion of the expert session was the statement of the fact that most actual for registration problems remain unsolved. In particular, experts of the committee recommend to pay attention to the following top priority missions:
Moreover, participants of the committee had a consensus opinion on necessity of changes in law on property registry in order to guarantee public access to the registered property owner data.
Photo Report on the outcome event
Background
Ukrainian Real Estate Club is a highly professional branch organization on the Ukrainian real estate market, contributing to its development and improvement. We are a unique platform for cooperation and communication between members of the Ukrainian and foreign real estate markets, as well as various related segments.
Speakers and participants of our events are leading experts of the real estate market, as well as other areas (information technologies, economics, law, banking, trade, investment, development and many others).
Among our activities are forums, conferences and summits. In addition, thematic business breakfasts, roundtable meetings and sessions of the UREC Legal Committee are held regularly.
Комитет по вопросам права URE Club
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 (Committee of URE Club).
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 Committee of URE Club are:
• 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 Committee of URE Club 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 Committee of URE Club involves all stakeholders from member companies of the Club. Members of the Committee of URE Club from among its members annually at a general meeting of the Committee URE Club shall elect two co-chairs of the Committee of URE Club.
