The Ministry of Justice of Ukraine explained the specifics of the sale of land plots that have been transferred for use under a lease agreement.

A plot of agricultural land can be sold even if it is under long-term lease from farmers or agricultural holdings, while the lessee has the right to preferentially purchase the agricultural land.

The procedure for the sale of leased agricultural land involves the following steps:

1. if there is a pre-emptive right to purchase a plot of land for agricultural purposes, its owner is obliged to register the intention to sell it in the State Register of Real Property Rights no later than 2 months before the date of conclusion of the contract of sale of the plot of land. If the sale of the agricultural plot of land is not carried out at a land auction, the application for state registration of such intention shall be submitted no later than two months in advance to the notary, who will certify the contract of sale, together with the draft of such contract;

2. within 3 working days, the notary is obliged to notify the lessee by a letter of value with a description of the investments and a notice of delivery or in person under a receipt about the intention of the owner of the land plot to sell it, the conditions of sale and an offer to use his preferential right;

3. if the lessee intends to use this right, he must notify the notary within 1 month from the date of receipt of the relevant notification of his desire to purchase the land plot on the terms proposed by the owner. In this case, within a month from the day of receiving the notice from the tenant, the notary shall appoint the day and time of concluding the contract of sale of the land plot between the owner and the tenant;

4. if within a month from the day when the lessee was duly notified by the notary about the intention to sell the land plot, such subject did not properly notify the notary public of his desire to use the preferential right, or refused to conclude a contract for the sale of the land plot, or did not appear to conclude such a contract on the day and time appointed by the notary public, it is considered that he lost his preferential right, and the owner can sell the land plot to another person.

All the rights and obligations of the previous subject (lessee) of such a right in legal relations related to the realization of such a right are transferred to the person to whom the preferential right to purchase a plot of land for agricultural purpose has been transferred. Also important is the fact that the transfer of the transferred preferential right to purchase an agricultural plot of land to third parties is prohibited.

Also, in Article 131 of the Land Code of Ukraine, the legislator established certain safeguards to protect the rights of tenants, providing that:

• privately owned agricultural plots of land can be alienated under donation contracts, lifetime maintenance contracts, inheritance contracts only in favor of the other spouse or relatives;

• the exchange of such land plots (except for the exchange within the agricultural land massif), their inclusion in the authorized capital of a legal entity or their transfer as a pledge may be carried out only with the consent of the lessee.

Source: www.pravo.ua