On 2 December 2016 Resolution of the Cabinet of Ministers of Ukraine No. 843 On Amendments to the Model Land Lease Agreement (the Resolution) came into force. It is aimed at simplifying The Model Land Lease Agreement, approved by Resolution No. 220 of the Cabinet of Ministers of Ukraine, dated 3 March 2004 (the Model Agreement), and bringing the Model Agreement in line with current legislation.

Main Developments

The Resolution makes the provisions of the Model Agreement consistent with Law of Ukraine No. 161-XIV On Land Lease, dated 6 October 1998 (the Law). The Resolution introduces the following main amendments:

  1. decreases the number of essential terms of a land lease agreement from eleven to three (a land lease agreement must contain, among other things, details of the leased object, the lease term and information about rent);
  2. removes the provision on mandatory annexes to the land lease agreement (plan or scheme of a land plot, certificate on determination of the land plot's boundaries afield, etc.)
  3. provides the possibility to conclude one agreement for the lease of several land plots owned by the same landlord;
  4. determines a minimum seven-year term for the lease of some types of agricultural land;
  5. removes outdated provisions on transferring lease rights as of the date of the state registration of the agreement, rather than the lease right registration;
  6. specifies the land normative monetary valuation as a ground for state and municipal land rent review.

Expected Consequences

The Resolution is aimed at eliminating contradictions between the Law and the Model Agreement, as well as deregulating relations between the landlord and tenant. The Resolution is expected to simplify the procedure for executing land lease agreements, especially for state or municipal land. The introduced amendments should also accelerate the procedure for lease of several land plots.