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Two new normative acts which are going to come into force on January 1st 2013 may significantly simplify the transaction procedure on the real estate market and strengthen position of the creditors against debtors.
In particular, we talk about the Procedure of the State land registration set forth in the Decree of the Cabinet of Ministers of Ukraine dated 17.10.2012 as well as about the Draft changes of the Procedure of the State registration of deeds. Both documents were considered at the regular URE Club Legal Committee meeting that took place on November 29th.
In course of the expert section of the URE Club Legal Committee the participants of the meeting discussed the Draft changes of the Procedure of the State registration of deeds that would come into force on January 1st 2013. According to the present normative act both specialized state body («Ukrgosreestr») and notary public that certified a legality of transaction conclusion may register the transfer of rights. Thus, Technical Inventory Bureau will be excluded from the procedure of registration of deeds since 2013.
The lawyers also noted a positive moment of this document. It is a simplification of the whole procedure of transaction conclusion. According to the experts an adoption of current document wording will probably accelerate the respective process and as a result it will have a positive influence on the development of the entire real estate market in Ukraine. According to Chairman of the URE Club Legal Committee and Partner at KPD Consulting Law Firm Vladislav Kysil, «We really have a mechanism for a full-fledged operation of the law that authorizes lawyers to act as a register. Admittedly, in general it is a positive change».
In fact, according to lawyers the process of registration act transfer to the relevant state body may cause some difficulties. According to this new normative act, notary will be obliged to transfer all documentation to the territorial subdivision of the Ministry of Justice exactly on the registration day. «Inefficient technical realization of documentation transfer by notaries to the Ministry of Justice may be a significant problem both for transaction parties and for notaries. To avoid negative effect and difficulties is possible just in case of electronic document transmission» — Vladislav Kysil underlined.
Besides, the negative moment of the new procedure of registration of deeds may be a lack of mechanism of automatic record transfer from the old register to the new one. First of all, such a situation may cause a discomfort for proprietors as well as for registered proprietary rights holders (including lease and mortgage).
Within second regular section of the meeting, experts assessed new Procedure of the State land registration under the Decree of the Cabinet of Ministers of Ukraine dated 17.10.2012, ¹1051. In general lawyers-participants of the URE Club Legal Committee meeting assessed this document positively.
The aim of this procedure is to broaden the authority of notaries as well as simplify and accelerate transaction conclusion on the real estate market. It is specified that today the access to the State land registration will be free not just for state bodies and notaries but also for proprietary rights holders as well as for banks in read mode.
Thus, according to Chairman of the URE Club Legal Committee Vladislav Kysil, «new normative act gives proprietary rights holder (for instance, a mortgage holder) an opportunity to have all registration data required for transaction without participation of the proprietor. Such a situation significantly strengthens a creditors’ position (generally the position of banks) against debtors».
The negative moment of the new Procedure, as were mentioned during the first part of the meeting, may be lack of automatic connection between the old and new registers. The lawyers underlined that the necessity of the re- proprietary rights registration by the holders may arise in case of lack of data transfer. It will cause additional tension on the real estate market as well as discomfort for proprietors.
In conclusion, participants of the URE Club Legal Committee noted the necessity of additional consideration of both normative acts in course of the future meetings when the regulations of these documents are put into practice and demonstrate all strengths and weaknesses.
Photo Report on the outcome event
Related links:
Results of the URE Club Legal Committee meetings
