They want to transfer land under apartment buildings to residents free of charge: what is provided for by draft law No. 16172

In Ukraine, it is proposed to change the rules for registering ownership of land plots under apartment buildings and adjacent territories. According to the new bill, such land will be able to pass into the joint ownership of the co-owners of the building free of charge. At the same time, it will be prohibited to sell, divide or transfer it into a mortgage.

The relevant provisions are contained in the bill No. 16172 “On Amendments to Certain Legislative Acts of Ukraine Regarding Ensuring the Implementation of Owners’ Rights in Apartment Buildings”, registered in the Verkhovna Rada.

Why are the rules for land ownership proposed to be changed

The authors of the legislative initiative draw attention to the problem of registering land plots under apartment buildings.

Despite the fact that the legislation already provides for the relevant rights of co-owners, the mechanism for determining the boundaries of land plots and their free transfer remains insufficiently regulated.

In particular, Article 382 of the Civil Code of Ukraine stipulates that owners of apartments and non-residential premises are co-owners of the common property of an apartment building.

Such property includes, in particular, the rights to the land plot on which the building is located and the adjacent territory, subject to state registration of the relevant rights.

In addition, Article 42 of the Land Code of Ukraine provides for the possibility of free transfer of the relevant land plots into ownership or permanent use to co-owners.

The new draft law is designed to specify the procedure for exercising these rights.

Land may automatically pass into the ownership of co-owners

One of the main innovations of the draft law is the introduction of a separate category of land – “land of an apartment building”.

It is assumed that the land plot will pass into the common property of co-owners free of charge from the moment the building is put into operation.

At the same time, the previous purpose of the land plot will not be of decisive importance for such a transition.

The bill also provides for the termination of the ownership rights of the previous owner of the land, as well as lease agreements or superficies from the moment the building is put into operation.

The proposed rules will apply to apartment buildings that have at least three co-owners, in particular houses of housing and construction cooperatives.

What role will the condominium association play

According to the bill, the right of joint joint ownership of a land plot is proposed to be registered in the person of the association of co-owners of an apartment building (OSBB).

Thus, the OSBB will have a role defined by law in the procedure for registering the relevant land rights.

At the same time, the land plot will be considered as the common property of the co-owners, and not as the separate property of a particular resident.

A different procedure is provided for houses, all premises of which belong to the state or a territorial community.

In such cases, it is proposed to provide land plots for permanent use to the relevant management organizations.

What will be prohibited with land under apartment buildings

The bill provides for a special legal regime for the use of land plots of apartment buildings.

In particular, it is proposed to prohibit:

Selling or otherwise alienating a land plot.
Dividing the land into separate parts.
Transferring a land plot as a pledge or mortgage.
Require the allocation of a separate share of land to the ownership of a specific co-owner.
Establishing superficies – the right to use a land plot for development.
Foreclosure on a part of the land plot for the debts of individual co-owners.

Such restrictions should ensure the preservation of the land plot as a single object of common property of the residents of an apartment building.

Will residents be able to rent out the adjacent territory

Despite the proposed restrictions, co-owners are planned to be allowed to use the land plot for individual economic needs.

In particular, by decision of the co-owners, it will be possible to:

Transfer individual parts of the land plot for rent.

Establish land easements – rights of limited use of the land plot.

Corresponding decisions must be made by the co-owners of the apartment building.

When will the new rules come into force

Currently, draft law No. 16172 has only been registered in the Verkhovna Rada.

In order to enter into force, the proposed changes must undergo parliamentary consideration and be approved in accordance with the procedure established by law.

Thus, the automatic transfer of land plots under apartment buildings to the ownership of co-owners has not yet been introduced.

If adopted, the draft law may significantly change the procedure for registration and use of adjacent territories in Ukraine.