Farm households will be guaranteed the transfer of rights to leased land after registration: what changes are being prepared in the Rada
In Ukraine, they want to legislatively regulate the procedure for transferring the rights and obligations of a land user from an individual to the farm household created by them. For this purpose, bill No. 15273 "On Amendments to the Law of Ukraine 'On Farm Household' regarding the regulation of the right to use land plots by a farm household" was submitted to the Verkhovna Rada.
The main committee responsible for reviewing the document is the Verkhovna Rada Committee on Agrarian and Land Policy.
As the authors of the initiative note, the need to adopt the document is due to the fact that current Ukrainian legislation does not clearly regulate the procedure for formalizing the transfer of rights and obligations of a user from an individual to the farm household created by them. It is emphasized that this negatively affects the consistency of law enforcement practice in such legal relations.
The document emphasizes that according to Article 12 of the Law of Ukraine "On Farm Household," farm household lands may include, among others, land plots used under lease agreements. At the same time, Article 19 of this Law provides that the property of a farm household may include not only buildings, structures, products, or funds but also the right to use land, water, and other natural resources.
The law also defines that property rights included in the contributed capital of the farm household are transferred to it for the term specified in the charter.
The explanatory note states that a farm household is a form of entrepreneurial activity of citizens who intend to produce commercial agricultural products on land plots provided to them for farming. At the same time, such a household is created only after the citizen has acquired the right to use the land plot.
The authors of the bill emphasize that the right to use the land plot must be specified in the charter of the farm household along with information about the land plot and the term of transfer of this property right.
The document states that after a citizen concludes a lease agreement for a state or communal land plot for farming and subsequently creates a farm household, the rights and obligations of the lessee effectively transfer from the citizen to the farm household from the date of its state registration.
The authors of the initiative also draw attention to the fact that a similar legal position has already been repeatedly expressed by the Grand Chamber of the Supreme Court in a number of rulings adopted in 2018–2019.
The bill proposes to enshrine in the Law of Ukraine "On Farm Household" that if a citizen acquires the right to use a state or communal land plot for farming and creates a farm household, the rights and obligations of the user of such land plot transfer to the farm household from the date of its state registration as a legal entity.
In addition, after the state registration of the farm household and the transfer of rights and obligations of the land user to it, the household will be required to register the corresponding right to use the land plot.
To do this, it will be necessary to submit documents provided for by the law on state registration of real property rights, as well as the land use agreement concluded by the founder of the farm household and the document on the creation of such a household.
The authors of the bill believe that adopting the document will eliminate legal uncertainty and regulate the procedure for transferring the rights and obligations of a land user from an individual to the farm household created by them.
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