If the owner of an agricultural plot of land has decided to sell it to a person who is not the subject of the preferential right to purchase it (for example, to another person in the presence of a tenant), then the legislation obliges the owner to take certain actions before concluding a sales contract. 

First of all, the owner in such a case must register his intention to sell the land plot in the State Register of Real Property Rights and Encumbrances (hereinafter referred to as the State Register of Real Property Rights and Encumbrances) no later than two months before the date of concluding the contract of sale.

The head of the Anti-Raiding Office Viktor Dubovyk talks about the features of the state registration of the intention to sell the land plot and its legal consequences.

Since the opening of the land market as of November 8, 2021, 6,538 registrations of the intention of the owner of an agricultural plot of land to sell it, as well as 7,394 registrations of the preemptive right to purchase an agricultural plot of land, have been carried out. 

So the new procedures are actively used by participants in the civil turnover.

The importance of complying with the law during their implementation is that the subject of the preferential right to purchase land can legally transfer the rights and obligations of the buyer to himself by paying the price of the plot specified in the sales contract concluded by the owner of the land with another person, if such a procedure is violated. 

It should be borne in mind that the application for registration of the specified intention is submitted by the owner of the agricultural land plot to the notary public, who will notarize the sales contract:

– together with the draft of such an agreement;

– if there is an open section in the Land Registry with the assignment of a registration number to the land plot.

It is also important to understand the legal consequences of the state registration of the intention of the owner of an agricultural plot of land, in respect of which a preemptive right to purchase it has been established, to sell it to a person who is not the subject of such a preemptive right.

Firstly, such an intention is normatively defined as a burden. 

Secondly, the state registration of the termination of the specified intention of the owner of agricultural land to sell it will be carried out without submitting the corresponding application for the state registration of the termination of the encumbrance simultaneously with the state registration:

– acquisition by the new owner of the right of ownership of such a plot of land; 

– the new intention of this owner regarding the sale of this land.

Therefore, the owner is not limited in the ability to change the conditions of sale and the right to register in the future the intention to sell on new conditions.

Thirdly, within three working days, the notary notifies (by a valuable letter with a description of the investments and a notice of delivery or in person under a receipt) the subjects of the preferential right about such an intention of the land owner.

At the same time, the subject of the preferential right is considered to have been notified of the stated intention of the owner also in the case of:

– his refusal to receive a message, about which there is a corresponding mark;

– if the message was returned to the notary in connection with the expiration of the established storage period.

Fourthly, the notary within one month from the date of receiving from the subject of the preferential right of purchase a notification of the desire to exercise this right:

– in agreement with the seller of the land plot, appoints the day and time of concluding the contract of sale; 

– informs (by a valuable letter with a description of the attachments and a notice of delivery) about the appointed day and time of conclusion of the contract of sale of the subject of the preferential right to purchase the land plot, who has expressed a desire to exercise this right.

It should be taken into account that the subject of the preferential right is considered to have waived his preferential right, if within a month from the day when he was duly notified by the notary about the intention to sell the land plot:

– did not properly inform the notary about his desire to use the preferential right;

– refused to enter into a land plot sale contract;

– did not appear for the conclusion of such a contract on the day and time appointed by the notary (on the condition of receiving a notice of delivery to the subject of the preferential right of a notice of appointment of the date and time of the conclusion of the contract of sale or a notice of refusal to receive such notice or if the notice is returned to the notary in connection with the expiration of the prescribed storage period).

It is important to note that state registrars must strictly comply with the requirements of the registration legislation, in particular, establish the identity of the applicant, verify his legal and legal capacity, and if the application is submitted by the representative of the owner – the presence of such a person with appropriate powers. 

Violation of the registration legislation during the state registration of the owner’s intention to sell agricultural acres or hectares may lead to the cancellation of the relevant registration decisions in a judicial or administrative procedure. 

 Source: Anti-Raiding Office of the Ministry of Justice