Risks of concluding a contract for the sale and purchase of land plots and their management

Risks and their management. Analysis of potential risks that may arise during the sale of agricultural land plots

During the support and direct signing of the land plots sale agreement of agricultural purpose, there are numerous risks.

Lawyers and notaries check the above-mentioned agreement for the presence of the following risks:

1. Availability of documentation necessary for such an agreement:
- original documents proving the right of ownership of the land plot,
- confirmation of registration of the land plot as an object of civil rights in the State Land Cadastre database,
- confirmation of registration of the land plot in the State Register of Property Rights to Real Estate and Their Encumbrances,
- availability of a report on the expert monetary evaluation of the land plot.

A detailed list of the required documentation, determined by certain legislative acts, is carefully checked by lawyers and notaries in the legal support of such an agreement.

2. Examination and verification of the agreement for the presence of essential conditions of a specific type of contract.

According to Ukrainian legislation, the contract is considered concluded if the parties have reached an agreement on all its essential conditions in the proper form.

Essential conditions include the subject matter of the contract, conditions defined by law as essential or necessary for contracts of this type, as well as all conditions on which at least one of the parties must agree upon request.

3. Availability of legal capacity of all parties to the above-mentioned agreement.

The seller cannot be legally incapacitated.

If a party to the contract is a minor, incapacitated person, it is necessary to obtain permission from the guardianship and trusteeship authority.

If a person does not speak Ukrainian, the contract itself must be bilingual.

If the acquirer has corporate rights (shares) in a certain number of legal entities, then for each of them, the notary must check the availability of land.

4. Timely verification of encumbrances on the plot, the presence of leases, emphyteusis, preferential rights holders.

5. Advance coordination of powers of attorney and non-standard provisions of agreements (whether they comply with legislative provisions and the compliance of essential conditions of contracts of this type) with the notary who will certify the agreement.

6. It is necessary to ensure that the preferential right of the lessee is not violated if there is an intention to purchase land under lease by formalizing a preliminary agreement specifying that the conclusion of the main sale agreement is possible no earlier than the end of the lease term. Thus, the lessee's preferential right to purchase the plot will not be violated.

7. It is necessary to ensure that the transaction for payment under the preliminary agreement (if any) is processed not as part of the payment for the land, but specifically as a guarantee payment, which is usually refunded on the date of the main agreement.

It should be remembered that this is an important aspect in the context of financial monitoring. Transactions for the purchase and sale of agricultural land are subject to mandatory financial monitoring.

The above list of risks is not exhaustive and is determined in each situation separately!

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LAW COMPANY EUROVECTOR

REPRESENTATIVE OFFICE OF THE LAW COMPANY EUROVECTOR IN MYKOLAEV

REPRESENTATIVE OFFICE OF EUROVECTOR LAW COMPANY IN KYIV