How to register the ownership of the object of construction in progress.

The Ministry of Justice clarified the rules for registering ownership of an object in progress.

In accordance with Article 1 of the Law “On Mortgage”, an object under construction is an object that has not been put into operation, in accordance with the law, but for which a building permit has been issued, and the costs of its construction have also been incurred.

Until the completion of construction (creation of real estate), the person erecting the object is considered the owner of the building materials, equipment that was used in the process of this construction. Such a person has the right to draw up an agreement regarding the object of construction in progress, after the state registration of ownership of it, in accordance with the law.

The Law “On State Registration of Real Rights to Real Estate and Their Restrictions” provides that the right of ownership to an object of construction in progress is subject to state registration.

Documents required forI am registered with the state:

• a document confirming the real right to the land plot located under this object, if the ownership of the land plot is not registered in the State Register of real rights to real estate.
• a document granting the right to perform construction work, issued in accordance with applicable law. If the registration of such a document was carried out in the Unified Register of Documents Granting the Right to Perform Preparatory and Construction Works, then it is not submitted. The state registrar, in this case, receives information from the Unified Register of Documents in real time and checks the absence of contradictions between the declared rights and the information entered in the register.
• a document describing an object under construction (technical passport, with a definition of the percentage of completion).
• a court decision that has gained legal force, if the ownership of an object under construction is acquired in this way.
• If the ownership of an object under construction is acquired on the basis of an agreement, then state registration of ownership is carried out on the basis of this agreement.

At the same time, Art. 31-2 of the Law establishes that the state registration of rights as a result of a notarial action, the consequence of which is the acquisition, change or termination of property rights, their restrictions simultaneously with the implementation of such a notarial action, except in cases of notarization of a transaction, the legal consequences of which are associated with the occurrence of certain circumstances .

The administrative fee for state registration of property rights is 0.1 of the subsistence minimum for able-bodied persons (UAH 210, as of 2020).

© Legal agency “AKTIV”, 2020.