Drafting a Land Lease Agreement

Drafting a Land Lease Agreement

Leasing a land plot is one of the most common forms of land use in Ukraine. A properly drafted lease agreement ensures legal protection for both the landlord and the tenant. It governs the terms of land use, the rights and obligations of the parties, the duration, and the termination procedure.

A land lease agreement should be developed based on the provisions of:

• The Land Code of Ukraine;

• The Civil Code of Ukraine;

• The Law of Ukraine “On Land Lease”;

• as well as the provisions of DBN B.2.2-12:2019 “Planning and Development of Territories.”

Key Elements of a Land Lease Agreement

1. Party Identification

The agreement should clearly identify the landlord and tenant, indicating their legal status (individual, legal entity, local authority).

2. Description of the Land Plot

The land plot must be described precisely: cadastral number, area, location, and designated use according to land management documentation.

3. Lease Term

The lease period must be defined (not less than 7 years for development purposes, as per Article 93, Part 2 of the Land Code of Ukraine).

4. Rent Amount and Payment Terms

The rent amount cannot be less than the minimum set by law. The payment procedure, deadlines, and indexation must be described in detail.

5. Rights and Obligations of the Parties

For example, the tenant has the right to use the land plot in accordance with its designated purpose, while the landlord may control compliance with the contract terms.

6. Terms of Amendment and Termination

Defines conditions under which the parties may amend or terminate the contract early (e.g., in case of breach of use conditions).

7. Liability of the Parties

Defines penalties for breaches of the agreement – fines, penalties, damages.

Mandatory State Registration

A land lease agreement is subject to state registration in the State Register of Property Rights to Real Estate. Without this, the agreement is not legally binding.

Practical Recommendations

To avoid legal disputes and ensure compliance with current legislation, it is recommended to involve qualified lawyers and land surveyors when drafting the agreement. This is especially important in cases of:

• leasing land for development purposes;

• changing the designated use of the land;

• involving investors or third parties.

Contact GlobalBud Ukraine

GlobalBud Ukraine employs experienced lawyers and engineers specializing in land law, urban planning, and support for construction projects. We provide comprehensive legal assistance in land lease agreements – from consultation to registration of rights.

Looking for professional assistance? Contact GlobalBud Ukraine!