Sale of Agricultural Land: What Threatens the Owner for Violating the Tenant’s Rights - Knowledge

Owners of agricultural land plots must take into account a special procedure for alienation of such lands. Ukrainian legislation provides for the preferential right of certain individuals to purchase a land plot, in particular the tenant. This was reported by the Land Fund of Ukraine, as agronews.ua writes.According to Article 130-1 of the Land Code of Ukraine, the preferential right to purchase an agricultural land plot belongs to:firstly, a person who has a special permit to use subsoil (in certain cases provided by law);secondly, the tenant of the land plot.The tenant may exercise his preferential right in the absence of the subject of the preferential right of the first priority or after their official refusal of such right.The third part of Article 130-1 of the Land Code of Ukraine establishes a clear procedure for notifying the tenant of the sale.No later than two months before the conclusion of the sale and purchase agreement, the landowner is obliged to register the intention to sell the land plot in the State Register of Property Rights to Immovable Property.For this purpose, an application is submitted to a notary along with a draft sale and purchase agreement. After registering the intention, the notary informs the subject of the preferential right within three working days by:sending a valuable letter with an enclosure description and a delivery notice;or personal delivery with a signature.The law also specifies that the tenant is considered duly notified even if they refuse to receive the notification or return the mail due to the end of the storage period.State registration of ownership rights to a land plot is carried out only if the requirements of the law regarding the exercise of the preferential right are met.If during the registration process it is found that:the intention to sell was not registered in the prescribed manner;the tenant was not properly notified;the deadline for exercising the preferential right specified by law has expired;there are no documents confirming the subject's refusal to exercise their right, the registrar or notary will not have legal grounds to carry out the state registration of the property rights transfer.These restrictions are aimed at protecting the legitimate rights of the tenant and preventing illegal alienation of agricultural lands.The fourth part of Article 130-1 of the Land Code of Ukraine provides that in case of selling a land plot in violation of the preferential right, the subject of such right may apply to the court with a claim to transfer the rights and obligations to them.Thus, even after the conclusion of the sale and purchase agreement and the registration of ownership rights, the new owner may lose the acquired right by a court decision.The procedure for notifying the tenant of the intention to sell a land plot is not a formality, but a mandatory requirement of the law. Compliance with the registration procedure of the intention to sell, proper notification of the subject of the preferential right, and documentary confirmation of all stages of the procedure are necessary conditions for further state registration of the property rights transfer.Failure to comply with these requirements creates the risk of refusal to carry out registration actions and subsequent challenging of the legal transaction in court.