Main points
- The seizure of a land plot does not terminate the lease agreement and does not exempt from rent, unless there is a court ban on use.
- The tenant can suspend payment only if access to the plot is prohibited as part of criminal proceedings, which must be documented.
Arrest of a share and rent / Photo Freepik
The fact of the seizure of a land plot does not automatically mean the termination of the lease agreement or exemption from payment of funds. However, there are exceptions when the use of the land is prohibited by a court decision and the issue of payment is resolved separately.
Will they pay rent for the share if he is arrested?
Lawyer Vitaliy Sokurenko, in a comment to Channel 24 , said that the mere fact of imposing an arrest on a land plot does not mean an automatic termination of the lease. Legally, this is, as a rule, a restriction on disposal (and sometimes also use), but not an automatic termination of the contract and not an automatic exemption of the tenant from payments.
That is, according to him, the owner cannot sell the land, give it away, or mortgage it . At the same time, the right to use the land is usually retained .
Vitaly Sokurenko
Lawyer LEGAL STRATEGY
An exception is possible only when a court or an investigating judge has expressly prohibited the use of the land plot. Such a situation may arise, for example, within the framework of criminal proceedings. If the tenant is actually deprived of the opportunity to cultivate the land due to a court injunction, the issue of payment is resolved individually: either in court or taking into account the terms of the contract regarding force majeure. If the seizure is imposed in criminal proceedings, it may include a prohibition on use, but this must be expressly stated in the resolution/order and confirmed by actual obstacles.
If the seizure is imposed due to the debts of the owner of the unit, this does not terminate the contract and does not relieve the tenant of financial obligations. The rent continues to be accrued in accordance with the terms of the contract. Only the recipient of the funds can change.
What happens in standard situations?
The lawyer notes that in a standard situation, the rent continues to be transferred directly to the owner of the land plot, and in the presence of a resolution of the enforcement service: if the arrest is also imposed on the debtor's income, the state or private enforcement agent sends the tenant a corresponding demand. In this case, the funds are transferred to the account of the enforcement service to repay the shareholder's debt.
If the court order or the executor's decision does not explicitly prohibit use, the tenant has the right to continue to cultivate the land, and the owner has the right to receive rent. The key question is always the same: was the tenant really unable to use the land due to circumstances for which he is not responsible?
The only real reason for non-payment is if the plot has been seized or sealed as part of criminal proceedings and access to it has been effectively banned. If the use of the land has become impossible, this may be a reason for suspending payment. But this fact must be documented,
– says Vitaliy Sokurenko.
If problematic situations arise regarding any land plots with the subsequent question of payment or non-payment of rent, it is necessary to act and remain within the framework of the law.
What to do in a real situation?
For tenants, self-termination of the accrual or payment of rent without proper legal grounds is a serious risk. Systematic non-payment (especially for more than two years) may be qualified as a material breach of the contract and lead to its termination in court. (Article 32 of the Law “On Land Lease”).
The lawyer noted for owners that if you are informed that payments are impossible due to the seizure of land, demand documentary confirmation – a copy of the court decision or the bailiff's decision. If the document does not contain a direct prohibition on using the land or a separate instruction regarding payments, the refusal to pay is unlawful.
Recently, cases have become more frequent in Ukraine where legal owners of plots of land are suddenly deprived of their land ownership rights by court decision. Typically, prosecutors challenge old privatization decisions, arguing that the land actually belongs to either a protected forest fund or the coastline.
Low rent is not a reason: when can you terminate a land lease agreement?
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A land lease agreement may be terminated by agreement of the parties or by court order.
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The landlord may unilaterally terminate the contract if the tenant delays paying the rent for more than 3 months.