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Is it possible to conclude a contract on the lease of land by citizens of Ukraine, which are not members of the family or relatives?

Could the citizens of Ukraine, who are not members of the family or relatives, conclude a land leasing contract?

The Constitution of Ukraine, the Land and the Civil Codes of Ukraine as well as the Law of Ukraine on Land Lease are the main acts regulating legal relations on using land plots in Ukraine.

Article 93 of the Land Code of Ukraine (hereinafter LC) reads: “The right to lease land plot is contractually based limited-time paid possession and use of a land plot needed by a leaseholder to carry out entrepreneurial and other activities.”

.It implies, that under the law, the land lease shall be permitted to carry out entrepreneurial activity and for other purposes.

The law maker does not place any restrictions on subjective contingent of leasers. Thus, in accordance with the above-mentioned Article of LC, land plots may be leased out to citizens and legal entities of Ukraine, foreign citizens and persons without citizenship, foreign legal entities, international associations and organizations and also foreign states.

And at the same time, under provisions of the law, not all of land plots may be leased out to citizens in particular.

According to the Article 19 of the LC, lands of Ukraine are divided into the following categories by main purpose:

1. lands of agricultural purpose;

2. lands of housing and civil building purpose;

3. lands of nature reserve and other environmental protection purpose;

4. lands of health-improving purpose;

5. lands of recreational purpose;

6. lands of historic and cultural purpose;

7. forest Fund lands;

8. water Fund lands; lands of industrial, transportation, communications, energy, defense and other purpose.

 

At the same time, the following land plots shall be transferred in ownership (including land lease) to citizens:

1. Lands of agricultural purpose granted for the production of agricultural produce, conducting of agricultural scientific-research and training activities, placing of relevant production infrastructure, or designated for those purposes (Article 22 of LC);

2. Land plots to construct individual dwelling houses, maintenance facilities and garages within the norms established by this Code (Article 40). Citizens may acquire the ownership of land plots for the above-indicated purposes;

3. Lands of nature-reserve fund and other nature protection purposes. The Code doesn’t establish any procedures for lease of such lands;

4. Lands of health-improving purpose. The Code doesn’t establish any procedures for lease of such lands;

5. Lands of recreational purpose. The Code doesn’t establish any procedures for lease of such lands.

6. Lands of historic and cultural purpose. The Code doesn’t establish any procedures for lease of such lands

7. Land plots of the Forest Fund are granted in lease to the business entities only.

8. Lands of Water Fund (coastal protection strips, riparian strips of waterways, as well as lakes, reservoirs, other water basins, marshes and islands for haying, fishery needs, cultural and health, recreational, sporting and hiking purposes, for scientific research, etc. (Article 59 of LC).

9. Lands of industry, transportation, telecommunications, energy, defence and other purposes. The Code doesn’t establish any procedures for lease of such lands

Thus, under provisions of LC, the lands of agricultural purpose, land plots to construct industrial dwelling houses, maintenance facilities and garages as well as lands of Water Funds may be leased out to citizens of Ukraine.

According to Article 93 of LC, relations with regard to leasing land are regulated by law.

As abovementioned, it is the Law of Ukraine On Land Lease, where the main requirements to contracts of land plots are determined. The lawmaker does not place any restrictions on subjective contingent of leasers.

At the same time, regulations of the Civil Code of Ukraine (hereinafter CC), that have the subsidiary meaning here, shall be applied to procedure of land leasing.

Under Article 509 of the Civil Code, an obligation shall be a legal relation where one party (a debtor) shall be obliged to perform an action (to transfer property, to do a job, to render service, to pay money etc.) to the benefit of the other party (a creditor) or to abstain from a certain action, while the creditor shall have the right to claim from the debtor to fulfill his obligation. In accordance with Article 11 of the Civil Code grounds for the accrual of civil rights and obligations include the agreements and legal actions.

Accordingly to Article 510 of the Civil Code, a debtor and a creditor shall be the parties in obligations. Both a creditor and a debtor may be presented in obligation by one or simultaneously by several persons.

Thus, the general rules established by the Civil Code for obligations shall be applied to transactions (including lease contracts). Both a creditor and a debtor may be presented in obligation by one or simultaneously by several persons, so in similar manner both a leaser and a renter may be presented by one or several persons.

In that case, the lease of a land plot by several physical persons presenting as one leaser is not prohibited by the current legislation.

Is it possible to conclude a contract on the lease of land by citizens of Ukraine, which are not members of the family or relatives?

The main legal and regulatory acts regulating legal relations with regard to use of land plots in Ukraine are the Constitution of Ukraine, the Land and the Civil Codes of Ukraine as well as the Law of Ukraine on Land Lease.

Under Article 93 of the Land Code of Ukraine (hereinafter LC), the right to lease land plot is contractually based limited-time paid possession and use of a land plot needed by a leaseholder to carry out entrepreneurial and other activities.

It implies, that under the law the land lease shall be permitted to carry out entrepreneurial activity and for other purposes.

The law maker does not place any restrictions on subjective contingent of leasers. Thus, in accordance with the above-mentioned Article of LC, land plots may be leased out to citizens and legal entities of Ukraine, foreign citizens and persons without citizenship, foreign legal entities, international associations and organizations and also foreign states.

And at the same time, under provisions of the law, not all of land plots may be leased out to citizens in particular.

According to the Article 19 of the LC, lands of Ukraine are divided into the following categories by main purpose:

1. lands of agricultural purpose;

2. lands of housing and civil building purpose;

3. lands of nature reserve and other environmental protection purpose;

4. lands of health-improving purpose;

5. lands of recreational purpose;

6. lands of historic and cultural purpose;

7. Forest Fund lands;

8. Water Fund lands; lands of industrial, transportation, communications, energy, defense and other purpose.

 

At the same time, it is permitted to grant to citizens in use (including lease):

1. Lands of agricultural purpose for the production of agricultural produce, conducting of agricultural scientific-research and training activities, placing of relevant production infrastructure, or designated for those purposes (Article 22 of LC);

2. Land plots to construct individual dwelling houses, maintenance facilities and garages for citizens of Ukraine for the above-indicated purposes (Article 40);

3. Lands of nature reserve fund an of other nature protection purposes; the procedure for lease of such lands does not determined by the Code;

4. Lands of health-improving purpose; the procedure for lease of such lands does not determined by the Code;

5. Lands of recreational purpose; the procedure for lease of such lands does not determined by the Code.

6. Lands of historic and cultural purpose; the procedure for lease of such lands does not determined by the Code.

7. Lands of the Forest Fund, under Article 57 of LC, are granted for lease only for legal entities.

8. Lands of Water Fund (land plots of coastal protection strips, technological protected strips and bank strips of waterways as well as lakes, reservoirs, other basins, swamps and islands for haying, fishery needs, cultural and health, recreational, sporting and hiking purposes, for scientific research, etc. (Article 59 of LC).

9. Lands of industry, transportation, telecommunications, energy, defense and other purpose; the procedure for lease of such lands does not determined by the Code.

 

Thus, under provisions of LC lands of agricultural purpose, land plots to construct industrial dwelling houses, maintenance facilities and garages as well as lands of Water Funds may be leased by citizens of Ukraine.

According to Article 93 of LC, relations with regard to leasing land are regulated by law. As abovementioned, it is the Law of Ukraine “On Land Lease”, where the main requirements to contract on the lease of land plots are determined. The law maker does not place any restrictions on subjective contingent of leasers.

At the same time, regulations of the Civil Code of Ukraine (hereinafter in the text - CC), that have the subsidiary meaning, shall be applied to relations with regard to leasing land.

Under Article 509 of the Civil Code, an obligation shall be a legal relation where one party (a debtor) shall be obliged to perform an action (to transfer property, to do a job, to render service, to pay money etc.) to the benefit of the other party (a creditor) or to abstain from a certain action, while the creditor shall have the right to claim from the debtor to fulfill his obligation. In accordance with Article 11 of the Civil Code grounds for the accrual of civil rights and obligations include the agreements and legal actions.

Accordingly to Article 510 of the Civil Code, a debtor and a creditor shall be the parties in obligations. Both a creditor and a debtor may be presented in obligation by one or simultaneously by several persons.

Thus, the general rules established by the Civil Code for obligations shall be applied to legal actions (including lease contracts). With regard to both a creditor and a debtor may be presented in obligation by one or simultaneously by several persons, so in similar manner both a leaser and a renter may be presented by one or several persons.

In that case, the lease of land plot by several physical persons presenting as one leaser is not prohibited by current legislation.

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