High Sublease Land Rent: Is This a Ground for Refusal of Registration
The Ministry of Justice has provided clarifications on two current issues in the field of state registration of property rights to real estate. These concern the possibility of registering the right of land sublease if the sublease payment exceeds the rent, as well as the conditions for state registration of the right of usufruct on real estate.
The state registrar has no right to refuse registration of the right of sublease of a land plot solely because the amount of payment for the sublease is higher than the rent specified in the main contract.
According to the Law of Ukraine "On State Registration of Property Rights to Real Estate and Their Encumbrances," the registrar, when considering an application, checks for grounds for refusal as defined by law. At the same time, the list of such grounds is exhaustive and does not include a provision allowing refusal due to the amount of payment for the use of the land plot.
State registration concerns the property right itself, not the contract as a legal transaction. Therefore, the registrar must verify only those contract conditions that characterize the property right, in particular the term of its validity and the subject of the contract — the land plot.
In addition, the ministry clarified the specifics of state registration of the right of usufruct on state or communal property.
In particular, the right of usufruct can be registered only for an immovable thing that is an independent object of civil legal relations. This means that the relevant real estate object must have separately registered ownership rights and an independent section opened in the State Register of Property Rights to Real Estate.
Thus, the right of usufruct cannot be registered for a part of a real estate object that is not a separate independent object of civil rights.
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