The well-established red-tape system of the governmental and local authorities as well as the corruption element in administration of state-owned and municipal land plots have long been a fact of common notoriety. In these conditions, businesses have to waste unreasonably lots of time to obtain a state-owned or municipal land plot for use (lease). In fact, the businesses that are ready to invest into development of the urban infrastructure of Ukraine have to additionally spend money and time to receive such opportunity.
After the necessary decision of the local authority on lease of the land plot is received, all you have to do is to sign the contract and use the land plot under the terms and conditions thereof.
However, such decisions on lease of land plots as well as land lease contracts themselves are often subject to litigation. Several main aspects can be emphasised based on our many years of experience in participation in litigations related to lease contracts.
The first one is that such disputes are mostly initiated by the prosecutor’s offices and business competitors via pseudo-activists or residents of the specific neighbourhood or area when it comes to the land lease decision. Claims for termination of lease contracts are often filed by the authority that has decided to lease out the plot.
The second one is that grounds for such claims can be both numerous real arguments and non-existing ones, from the procedural violations made during the decision-making up to unlawful change of the land category or violation of terms and conditions of the land lease contract.
In any case, in case such claims related to lease relations are granted, the only one suffering moral, financial and resource losses is the lessee, i.e. business. In fact, all the time spent to lease the plot, the funds invested into the design documentation can be brought to nought with no compensation or refund, including the lease charges.
Such major risks urge to engage a legal counsellor in case there is a business and land litigation. Timely involvement of legal counsellors and team efforts to collect evidence and develop the legal stance will result in the positive outcome of the hearing.
The team of TOTUM Law Firm has a broad experience in litigations related to lease legal relations, including as to invalidation of decisions or termination of lease contracts. The well-developed action algorithm for defending our Clients’ rights in this category of cases enables us to promptly start the work and defend our Clients’ rights in court with adequate quality and confidence.
In Real Estate and Construction field
Winner in the Construction and Real Estate category
According to the Ukrainian Real Estate Club
5th place in Real Estate Practice category
5th place in Land Law category