Main points
- Lawyers explain that changes to a land lease agreement in Ukraine are made by mutual consent of the parties and must be drawn up in the same form as the agreement itself.
- Changes to the essential terms of the contract, such as the leased object, the term of the contract, or the amount of rent, are subject to state registration.
Changes to the lease agreement / Photo Freepik
Land leases often require revision of terms, from the amount of rent to the terms of use of the land. Lawyers explain how to legally amend the contract to avoid disputes and legal risks.
Regulatory framework and form of land lease agreement
Lawyer Lyubov Polishkevich told Channel 24 that most often land leases are not “signed and forgotten.” Long-term leases sometimes require changes in business strategies, revisions to terms, rent amounts, and other conditions, so it is natural for the parties to review the agreements.
So, according to her, a logical question arises: how to correctly make changes to the land lease agreement so that the document meets both the interests of the parties and the requirements of the law, and does not become the cause of a lawsuit.
Lyubov Polishkevich
Managing Partner of the Law Firm Result, Head of the Land Law and Real Estate Practice
Lease relations in Ukraine are regulated primarily by the Land Code of Ukraine, the Law of Ukraine “On Land Lease” and the Civil Code of Ukraine. In addition, subordinate regulatory legal acts are important, in particular in the field of state registration of property rights. It is these regulatory legal acts that determine the essential terms of the contract, the procedure for its conclusion, amendment, renewal and termination.
A land lease agreement is concluded in writing. As a general rule, it does not require mandatory notarial certification (unless otherwise established by law or agreement of the parties). The right to lease is subject to state registration in the State Register of Real Property Rights. And this is fundamental: without registration, the right to lease as a real right does not arise.
How to change the terms of the contract?
According to Lyubov Polishkevych, in accordance with Article 30 of the Law of Ukraine “On Land Lease”, changes to the terms of the contract are made by mutual consent of the parties.
The key rule: amendments are made in the same form as the contract itself. That is, if the contract is concluded in writing, the amendments are made in writing. If the contract was notarized, the additional agreement is also notarized.
Typical cases when there is a need to make changes to the land lease agreement are the following:
- change in the amount of rent;
- clarification of individual provisions of the contract (details, lessor data, terms of use of the plot);
- extension of the lease term (renewal of the contract).
Unilateral changes to the contract are generally not permitted; exceptions may only be made in cases expressly provided for by law or the contract itself.
Additional agreement: what can be changed?
By means of an additional agreement, the parties may change both the essential terms of the contract and any others. Essential terms include, in particular:
- rental object (cadastral number, location, area);
- contract term;
- the amount of rent.
Important! If the changes concern essential conditions, they are subject to state registration as changes to property rights.
Exception – condition on contract renewal
Separately, the lawyer mentions the so-called automatic prolongation. According to Part 3 of Article 126-1 of the Land Code of Ukraine, the condition for renewing the contract can be changed by submitting a corresponding application to the State Register of Real Rights to Real Property.
But let's go back one step for clarity. In 2020, amendments to the Land Code of Ukraine came into force, which, in particular, gave life to the following norm: “if a contract contains a condition on its renewal after the expiration of the term for which it was concluded, this contract is renewed for the same term and on the same conditions. Renewal of the contract is considered to be the renewal of the contract without the parties to the contract concluding a written transaction on its renewal in the absence of a statement by one of the parties to exclude information on the renewal of the contract from the State Register of Real Rights to Real Property. The parties to the contract are not required to take other actions for its renewal.”,
– explains Lyubov Polishkevich.
No other actions by the parties to the contract are required to renew it.” That is, if the lessor agreed to the extension when concluding the contract, then an additional agreement on the renewal of the term will be unnecessary, and upon the expiration date of the land lease contract, the State Register of Property Rights will automatically extend the contract for the same period.
However, you should not be afraid of the arbitrariness of tenants, because if the landlord changes his mind, a classic additional agreement to the contract will not be needed – the law provides for a separate mechanism through the registration procedure.
Important! You can change almost any provision of a land lease agreement if both parties want to and act within the law. The main thing is to follow the form. In writing. If necessary, notarized. And be sure to register the changes if they concern essential conditions or affect property rights. Otherwise, you will not have a changed agreement, but only the illusion of changes, and in land legal relations, illusions are expensive.
How to find a vacant plot of land in Ukraine: a detailed explanation
-
To search for a vacant land plot in Ukraine, it is recommended to use the Public Cadastral Map with appropriate filters.
-
Another method involves sending official requests to urban planning authorities and the State Geocadastre to obtain graphic materials and verify the presence of the owner.