Automatic Renewal of Land Lease Agreement

Automatic Renewal of Land Lease Agreement

Automatic renewal of a land lease agreement is a legal mechanism that allows the lease term to be extended without the need for re-signing the agreement. This approach significantly simplifies the relationship between the lessor and the lessee and ensures uninterrupted use of the land plot, which is especially important in the agricultural business, construction, and real estate management sectors.

Legislative Regulation

The legislative regulation of automatic land lease renewal is based on the following key legal acts:

• Land Code of Ukraine (Article 126-1)

• Law of Ukraine “On Land Lease” (Article 33)

• Civil Code of Ukraine (Article 764)

According to Article 33 of the Law of Ukraine “On Land Lease”, if the agreement contains a provision on automatic renewal under the same conditions and for the same term, the lease is considered automatically renewed, provided that neither party has notified of its termination. The notice must be submitted no later than one month before the end of the lease term, unless otherwise stipulated in the agreement.

Conditions for Renewal

To enable the automatic renewal mechanism, the lease agreement must contain a clear provision for such renewal. For example:

“If neither party notifies of its intention to terminate the agreement 30 days prior to its expiration, the agreement shall be automatically renewed under the same terms and for the same period.”

Registration of Renewed Agreement

It is important to note that for the automatically renewed agreement to have legal validity, the lessee must ensure state registration of the renewed lease in the State Register of Property Rights to Real Estate. Without this, the extension of the lease term will not be legally binding on third parties.

Practical Challenges

In practice, various issues may arise regarding the automatic renewal of agreements, especially when it involves state or municipal land plots. In such cases, local self-government or state authorities may require an additional agreement or a new contract to be signed. In such situations, it is advisable to seek professional legal assistance.

Recommendations

The issue of land use rights registration, including lease agreement renewal, is part of the legal support services for land issues provided by GlobalBud Ukraine.

Contact GlobalBud Ukraine — our team of experienced lawyers and engineers will help you properly draft, renew, and register your land lease agreement in accordance with Ukrainian legislation and current building regulations.