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The Ukrainian register of immovable property became publicly available
Kyiv, Ukraine, Wed, Feb 4, 2015
As part of the UkrainianGovernment’s reform measures and anti-corruption drive, as of 01 January2015, the Ukrainian State Register of Proprietary Rights to Immovable Property(the “State Register”) finallybecame accessible to all legal entities and natural persons. This major step intransparency of commercial relations means that any person is entitled toaccess the State Register in order to check the official status of proprietaryrights registered with respect to specific immovable property.
Previously access to the StateRegister was only granted to a limited group of people (for example ownersand/or users of immovable property, courts, state authorities etc.).Suppression of the data regarding proprietary rights to immovable propertyundermined the development of the business environment in Ukraine and fosteredcorruption and fraud in the Ukrainian real estate market.
The rules of access to theState Register are specified in the “Order of provision of information from theState Register of Proprietary Rights to Immovable Property to natural personsand legal entities”, approved by the Order of the Cabinet of Ministers ofUkraine No.722 as of 24 December 2014 (the “Order”).
According to the Order,starting from 01 January 2015 any person desiring information from the StateRegister may either apply in writing to a notary and/or department of the StateRegistration Service of Ukraine (“Option1”), or perform an independent onlinesearch through the web-site of the State Registration Service of Ukraine (“Option 2”). It is important to note that a person may perform the searchesregarding both options only with respect to a specific immovable property.Third persons are still not allowed to perform searches and obtain informationabout individuals or companies (such as a list of property they might own oruse), as authority to perform such searches is granted to the officials ofstate and/or municipal bodies, courts, law enforcement agencies, prosecutionauthorities, Security Service of Ukraine, notaries and advocacies infurtherance of their official duties.
The results of the searchesshall be provided in the form of an information certificate (the “Certificate”), which contains officialdata available in the State Register regarding specific immovable property(i.e., registered proprietary rights), except for the personal data of theholders of proprietary rights to immovable property (i.e.; personal identitydocument and tax details).
In order to provide a clearillustration as to how to utilise Options 1 and 2, we have provided astep-by-step description below.
Option 1:
- a person (the “Applicant”) pays the official fee for the searches (currently UAH 34);
- the Applicantfills in and submits to the notary and/or department of the State RegistrationService in Ukraine (the “Registrar”) the application with required attachments (if any). TheApplicant should also submit the document evidencing payment for the searches;
- the Registrarverifies the Applicant’s identity (i.e. checks the passport of the Applicantand/or documents confirming the authority of the representative) and registersthe application; and
- within one (1)working day from the registration of the application, the Registrar performsthe searches in the State Register and issues the Certificate in paper form tothe Applicant.
Option 2:
- a person (the“User”) enters the web-site of State Registration Service of Ukraine (the“State Service Web-Site”) at http://kap.minjust.gov.ua;
- the User registersas the customer of the State Service Web-Site. For the purposes ofregistration, a natural person should provide their full name, tax number anddetails of a personal identity document (i.e., passport). For the purposes of alegal entity, the following information should be provided: name, taxidentification number and full name of the representative of a legal entity whoperforms the registration;
- the User performsthe search by using the details of the specific immovable property (i.e.,address); and
- the User paysonline (by means of bank card) the official fee for the searches (which iscurrently UAH 17) and obtains the Certificate in electronic form.
Although the online searchesappear to the better option in terms of time efficiency, since the StateService Web-Site is relatively new and is still being developed we are aware ofcurrent technical issues with the State Service Web-Site which do not allowproper performance of the searches. Furthermore, the database of proprietaryrights to immovable property located on the State Service Web-Site seems to beincomplete. Therefore, we would recommend using Option 1 until the StateService Web-Site is properly launched, which will hopefully take place in thenear future.
Authors:
Daniel Bilak, Managing Partner, daniel.bilak@cms-cmck.com
Natalia Kushniruk, Senior Associate, natalia.kushniruk@cms-cmck.com
