Brief description of real estate transactions (deals) in Ukraine

Talking about the real estate deals (transactions) in Ukraine one should find that from the one hand it is the usual transaction (deal) from the legal point of view, but from the other hand one should keep it in mind that Ukrainian legislation provides some special requirements and procedures for such transactions and that there is the special list of entities (persons), who normally participate in most real estate transactions (deals) in Ukraine.

The principal legislative regulation as concerning the real estate transactions (deals) is the Civil Code of Ukraine and also some procedural bylaws, which provide procedures for notarization and the state registration of such transactions in Ukraine and a failure to follow these procedures can result in loosing the money paid for the real estate in the issue.

Usually a real estate transaction (deal) in Ukraine involves the following parties: realtors, lawyers (attorneys at law, legal advisers, etc.), notaries and state authorities (i.e. registrars).

- Realtors are responsible to search the real estate, which meets requirements of the customer (i.e. the potential buyer or a tenant). Realtors are also often responsible for search of a potential buyer or a tenant (if the customer is owner of the real estate). Scope of realtor's services may vary from one realtor to another or can be something that the customer can choose proceeding from his actual needs, believes and ideas. In other words, work of a realtor can include: 1) simple supply of information to the customer (i.e. some descriptions of the real estate, names, contact data of owner, etc.) in order he could choose the other required party independently; 2) choosing of the other required party by realtor (i.e. introduction of the parties); or also 3) holding negotiations with the other party and helping the customer to reach a good agreement as regarding the real estate in the issue (i.e. as regarding terms and conditions of future contract). Sometimes realtors propose also background check (verification) of the other party and documents for the real estate in the issue (i.e. due diligence), however it is reasonable to entrust this work to a good lawyer.

- Lawyers (attorneys at law, legal advisers, etc.). Normally they start their work at the stage of negotiations between the parties of the perspective transaction or even earlier and normally there two lawyers (one with the seller and one with the buyer). The lawyers (namely the lawyer with buyer) make due diligence of the real estate in issue (i.e. check-up (verification) of appropriate title documents provided and sometimes collecting some information about the other party in order to be sure that the same is the honest one and that the transaction is more or less risk-free. They are also responsible for preparation of the draft contract (or a preliminary contract, an advance-deposit contract, etc. if any) and accordingly help their clients to stipulate the suitable terms and conditions in the final agreement. After making and notarizing the final agreement (good lawyer will also arrange a good and experienced notary for notarization of the contract and can preliminary arrange everything necessary at the notary's office) lawyer on side of the buyer is also responsible for the state registration of the real estate sale and purchase contract (as far as this part is especially important because the title is transferred to the new owner at the moment of state registration of such real estate sale and purchase contract).

- Notaries, since the real estate sale and purchase contracts require notarization. Notaries are responsible for collection of the required state taxes and other required duties. Sometimes notaries can also provide some standard text of contract for the contractual parties. Another one important responsibility of notaries is to check identities of the contractual parties and to certify their signatures on the contract. Notarization of the contract also means that the same is to be made on the special blank with protective elements.

- State registrars – they are the state officials working at the local Bureau of Technical Inventory (BTI). They formally check if the deal, which have been requested to be state registered, complies with applicable Ukrainian laws and regulations and register the same with the State Registry of Real Estate therewith issuing appropriate title document.

The above information is provided herein in educational and informative purposes only. It is provided that you have to get appropriate legal advice as regarding the legal and other issues of your interest in Ukraine in order to have the exact, extensive and up-to-date legal and other related information.

Do not hesitate to contact us if you have any questions or issues of legal nature, our Law Firm is working for you and our experienced legal specialists are always ready to help providing the client with appropriate legal consultations, legal reports and summaries, reasonable legal advices and all the other required legal support, assistance, coverage and protection.

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