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UNLOCKING REAL ESTATE TRANSACTIONS

FEATURES IN THE ACTIVITIES OF NOTARIES

On April 19, 2022, the Government of Ukraine adopted Resolution (№480) On Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine on the Activities of Notaries and the Functioning of Unified and State Registers Operated by the Ministry of Justice under Martial Law (hereinafter - the "Resolution"), which partially restores the performance of notary activities and state registration of titles to real property.

The Resolution introduces the following temporary rules for the duration of the martial law and within one month after its cancellation.

Exclusively the notaries listed in the relevant order of the Ministry of Justice (No. 1760/5 dated May 3, 2022, following the link: https://minjust.gov.ua/pages/list_of_notaries?fbclid=IwAR09utnJH67WP0NuPhzPKABPo__Vdyj56JlmgJpUVA09wyM4CcSa6I5D-sQ) may certify:

- agreements on alienation, division (separation) of real property;

- inheritance agreements;

- mortgage agreements;

- assignment agreements (under the loan or mortgage);

- agreements on the satisfaction of mortgagee's claims;

- agreements on the establishment of trust ownership of the real property;

- agreements on the determination of shares in the joint ownership;

- agreements on the division of joint property of spouses;

- loans, leases (leases), leasing of buildings or other constructions (their separate parts) for at least three years;

- powers of attorney for the right to dispose of real estate, as well as some other transactions specified in the Resolution.

The Ministry of Justice may list the territories where notarial and registration actions may be prohibited.

According to amendments introduced by the Resolution, it is prohibited:

- to certify the signatures on the acts on the transfer of real property to and from the authorized capital of legal entities;

- to perform notarial and registration actions within one month following the date of the previous relevant actions in respect of such property (expect inheritance and state registration of rights as a result of determining the size of shares in the right of joint ownership);

- to notarize the agreement on the sale of a mortgaged property belonging to an individual under a consumer loan, except in cases when such sale is carried out under the consent of the mortgagor, as well as state registration of ownership of real property based on a mortgage agreement on a consumer loan, which includes a reservation to meet the requirements of the mortgagee by acquiring ownership of the mortgage;

- to perform notarial and registration actions in respect to agreements executed on behalf of an individual alienator (mortgagor, etc.) based on a power of attorney;

- to make writs of execution on loan agreements that are not notarized.

It should be noted the performance of notarial and registration actions is carried out by notaries within the region where the real property is located. Additionally, the principle of extraterritoriality applies to the territories of the city of Kyiv and the Kyiv region.

To summarize most real estate transactions have already become possible (acquisition and alienation of real property, long-term lease, mortgage, division, and consolidation of real property. Meanwhile, it should be noted that land transactions are currently impossible due to the blocked State Land Cadastre. That means that transactions with standalone buildings might be problematic as well.

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. The information contained in this overview is not intended to provide legal advice and should not be relied on or treated as a substitute for specific advice concerning individual situations.

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