REAL ESTATE LAW IN FOCUS

• Date: 01.08.2017
• Author: Vladyslav Kysil
• Practice: Real Estate and Construction
• Industries: Banks, insurance, leasing and financial companies, The participants of the real estate market, Industrial and Production Companies

ENERGY EFFICIENCY IN BUILDINGS

On July 20, 2017 the President of Ukraine signed the Law of Ukraine On Energy Efficiency of Buildings. In regards to harmonization of energy regulations with the EU legislation, the long-awaited progress is observed.

APPLICABILITY

According to the Association Agreement between Ukraine and the European Union, the European Atomic Energy Community and their Member States, Ukraine shall move towards regulatory approximation to the key elements of the EU acquis, particularly promoting energy efficiency and the use of renewable energy sources. Thus, the relevant first steps are finally made.

First of all let’s note the Law is not applicable to the following constructions:

- industrial and agricultural buildings, warehouses, energy, transportation, communication and defense facilities;

- places of worship;

- cultural heritage sites;

- temporary buildings for business purposes (up to two years);

- standalone buildings with a heating area of less than 50 sq.m. 

The Law establishes the minimal requirements for the energy efficiency of buildings and also implements a mandatory certification system.

CERTIFICATION OF THE ENERGY EFFICIENCY OF BUILDINGS

The following categories of buildings are subject to certification of energy efficiency:

- buildings o CC2 (medium) and CC3 (high) categories of consequences;

- state-owned buildings with a heating area exceeding 250 sq.m occupied by state authorities;

- buildings with a heating area exceeding 250 sq.m, and where all of the premises are occupied by local authorities; and

- by increasing energy efficiency of buildings by thermo-modernization financed by the state.

A developer shall get the energy efficiency certificate before commissioning by engaging a certified energy auditor at the expense of the building owners, homeowners associations, managing associations of the multi-family buildings or state authorities. The owner may get certification of building even the one is not listed above.

The certificate shall be the part of project and design documentation and valid for 10 years, unless cancelled earlier (where a new certificate was issued).

The energy auditors shall be required to submit the executed energy certificates to the State Agency on Energy Efficiency and Energy Saving of Ukraine within 10 business days of their execution.

Under Art. 7 of the Law the vendor/ landlord shall provide the buyer/ tenant the energy certificate of the building (residential, nonresidential premises) or inform on its absence.

Please note the new Law application will be postponed for one year following its official promulgation, whilst certain provisions (e.g., the ones related to mandatory energy efficiency certification) will come into effect even later – on July 1, 2019.

REGISTERS’ COHERENCE

On July 12, 2017 the Cabinet of Ministers of Ukraine adopted the Order of access of state title registrars to the State Land Cadaster (No.509). According to the Order all information available in the Public Title Register will be synchronized with the State Land Cadaster online.

This will additionally secure owners’ titles to the land plots as well as simplify registration procedures particularly allow state registrars and state cadaster executives to collate data from both registers.

 

 

 

 

 

                Vladyslav Kysil,                                  Mykhailo Semka,

                     Partner                                              Associate

              KPD Consulting                                   KPD Consulting 

Should you have any questions with respect to above or require any additional information, please do not hesitate to contact Mr. Vladyslav Kysil (v.kysil@kpdconsulting.com.ua) or Mr. Mykhailo Semka (m.semka@kpdconsulting.com.ua). We will be pleased to assist You.