Land Lease Agreement
Land lease is a civil-law agreement under which a land plot is transferred to a lessee for temporary use under the terms defined by the agreement. According to Article 93 of the Land Code of Ukraine, leasing is one of the forms of land use based on a contract between the landowner (lessor) and the user (lessee).
Key Provisions of a Land Lease Agreement
The lease agreement must comply with the Law of Ukraine “On Land Lease” and the Civil Code of Ukraine, in particular Article 626 and following. As per Part 1 of Article 15 of the aforementioned law, the agreement must include the following essential conditions:
- Lease object (cadastral number, location, area).
- Lease term.
- Rent amount, form, and payment schedule.
- Land use conditions.
- Terms for land return upon lease expiration.
- Rights and obligations of the parties.
- Liability of the parties.
The agreement is also subject to state registration in the State Register of Property Rights to Real Estate.
Types of Land Lease
- Short-term lease — up to 5 years.
- Long-term lease — up to 50 years.
- Agricultural lease, development lease, lease for industrial purposes, etc.
Lease Payment
The rent may be set in monetary, natural, or other forms, as agreed by the parties, but cannot be less than the legally prescribed amount (e.g., clause 288.5.1 of the Tax Code of Ukraine — not less than 3% of the normative monetary valuation of the land plot).
Legal Aspects
- Signing an agreement without a cadastral number is invalid.
- Terms can be changed only by mutual agreement and must be registered.
- Unilateral termination is only possible by court decision or as stated in the agreement.
Ownership Verification
Before signing the agreement, it’s essential to check whether the land ownership is registered in the State Register of Property Rights to Real Estate.
Related Services
- Legal support for land operations
- Development of land management documentation
- Real estate and land valuation
