Land in View: Privatization Issues Answers Wanted

Katerina A. Nastechko

Land reform and privatization of land of an agricultural nature took place in the first years of privatization. The execution of land reform in the sphere of agricultural production was conditioned by the necessity to transfer land to the ownership of people working on it.

The privatization of lands includes the privatization of lands in use (under private house, rest house, etc.) and receipt of land plots from lands of state or communal ownership within the framework of norms of free of charge privatization in accordance with Article 121 of the Land Code of Ukraine. It means that the citizen can receive in private ownership 6 types of land plots of different purpose as listed in Article 121 of the Land Code of Ukraine. He or she can apply with an application to bodies of domestic power which can provide such lands to ownership. These lands can be situated in cities, villages or other inhabited districts and out of such districts. The aforementioned land plots can be provided from reserve lands.

The provisions of the Land Code of Ukraine set up one-time privatization for every one of six categories of lands. There is the question in practice if the citizen privatized a land plot of minor size then stipulated in Article 121 of the Land Code of Ukraine, can this citizen privatize the rest within the frameworks of size stipulated in Article 121 of Land Code of Ukraine? Practice proves that the citizen cannot apply a second time because the free of charge transfer of lands on every use provides for a one time application. However, point 3 of Article 116 of the Land Code of Ukraine provides that such privatization is executed within the framework of norms stipulated in legislation. So, the question can be discussed and the answer should be found in court practice.

It should be noted that employees of social sphere of a village have the right to privatize a plot of land of agricultural designation in use, in particular for maintenance of personal peasant agriculture not depending on the place of residence taking into account the availability of free lands.

The fact of privatization of a land plot should be registered by the placing of a special mark in a person’s passport.

Calculation of payments

It should be noted that free of charge privatization means that citizens should not pay for the cost of the land. However, additional expenses connected with preparation of technical documentation rise in the process of privatization.

The maximum levels of payment of execution of land — surveying works in case of free privatization of lands or transfer in use of land plots to citizens of Ukraine are stipulated, in particular: it cannot exceed 5 non-taxable minimum incomes of citizens for preparation of document certifying the ownership for land plot for allocation of a land plot (pai); it cannot exceed 9 non-taxable minimum incomes of citizens for preparation of document certifying the ownership to a land plot for free of charge privatization of land by citizens of Ukraine in accordance with Article 121 of the Land Code of Ukraine except for cases stipulated by point 1 of this article.

Pitfalls you should know about

Ukrainian land legislation stipulates in Article 84 of the Land Code of Ukraine that there is a list of land plots of state ownership which cannot be provided in private ownership (land under railway stations, automobile roads, objects of air and pipeline transport, land of atomic energy and space system; lands under the objects of the nature reserve fund and historical-cultural objects, which have national and general state significance; land plots owned by educational institutions of state ownership, etc).

According to practice a city council can reject a person’s application to privatize a land plot on the basis of non-provision of all documents and the absence of notification about allocation of new land plots in the General City Plan. However, every citizen should be aware that according to the norms of current legislation there is a possibility to receive a land plot in any city or village and apply with documents to another city council.

The privatization of lands does not cover all lands which are in permanent use of state and communal agricultural enterprises, institutions and organizations. It includes just agricultural land. Thus, the lands of the forest and water fund, which is part of lands of such subjects, cannot be privatized. Besides, the part of agricultural lands of such enterprises, institutions and organizations can be allocated in the reserve fund (15% of all agricultural lands), which remains in state and communal ownership.

It should be noted that the State Committee of Land in the Letter from 16 July 2002, No.14-21-11/3777 drew the conclusion that as transfer of part of the territory near a house (pridomovoy territory) (land plot) is not stipulated by laws of Ukraine, the fulfillment of the state act to ownership to land is the competency of joint owners or users in unison. They should pay a land tax according to the part in ownership to the house or construction.

Guarantees set

The privatization of lands is an important part of the effective system of the Ukrainian economy. According to Article 15 of the Constitution of Ukraine, social life in Ukraine is based on political, economic and ideological diversity. Economic diversity means regulations and guarantees for diverse forms of ownership of lands, including privatization of lands. Article 42 of the Constitution of Ukraine sets up the right to carry out entrepreneurial activity. Thus, the provision for Ukrainians of such a right demands the privatization of relevant lands. Article 41 of the Constitution of Ukraine declares the principle of inviolability of the right to private ownership, including the ownership right to land plots.

Land guarantees as to privatization of lands are provided by the Land Code of Ukraine and regulate the procedure of privatization of lands of different designations. Criminal guarantees set up legal responsibility for violation of the rights of citizens to land. Civil guarantees provide the regulation of procedure of consideration of disputes connected with privatization of land plots.

And to conclude, the privatization of lands is an effective mechanism to allot land plots to citizens who are interested in its immediate use. State bodies should support the privatization of lands in rural areas and uncultivated districts.