How to buy a land plot in Ukraine
Investing in land is more profitable than in residential real estate. But in order for expectations to be justified, you need to choose the right plot. In this article, we will consider in detail what to pay attention to when choosing a land plot, what documents the seller should have, how the purchase takes place, what the risks of land acquisition may be and much more.
The main criteria for choosing a land plot
Before studying the sellers' offers and going to view plots of land, it is important to know the criteria for selecting land:
target purpose of the plot - for residential development, for agricultural needs, for industry, for energy, etc..;
type of use - cottage, eco-farm, factory, service station, etc.;
location - in a populated area, outside a populated area, forest, first line, highway frontage;
area - is it enough for the realization of the planned project and not too much, so as not to overpay for taxes and maintenance;
communications - whether there is gas, water, electricity, sewerage;
roads - possibility of construction equipment access, quality of roads, convenience of access to the future house, proximity of busy highways;
expenses - taxes or rent, operating costs.
When choosing a land plot for the construction of a house or dacha, it is also worth paying attention to its slope, level of illumination, wind rose. If you plan to buy land for agricultural purposes, the convenience of cultivating fields, the quality of soils, the possibility of irrigation, etc. play an important role.
When going to inspect the plot, it is necessary to carefully study the territory: whether the landscape corresponds to the intended purpose, whether there is an access road, what is the groundwater level, whether the landscape suits you, how close is the forest or water body, whether there are neighbors, etc. If the plot is uneven, there is no access road or communications, it is important to calculate whether such a purchase will be profitable, as the costs may be unreasonably high.
When land is purchased for residential construction, it is necessary to assess whether it will be convenient to live in the house in the long term. To do this, you should study the local infrastructure and the availability of schools, stores, medical facilities, the proximity of public transportation, and the level of security. It is better to refuse the deal if there is a factory or other industrial facility not far from the site, there will be significant costs for the road to work or do not suit the future neighbors.
Risks when buying a plot of land
There are risks involved in buying any real estate. Land plots are no exception. But it is quite realistic to avoid them if you know what to look out for. First of all, it is important to ask the seller to ask a certified specialist to install boundary marks on the plot, as it is unrealistic to determine the real boundaries of the land without special equipment. If you miss this point, unpleasant surprises may arise after the transaction in the form of disputes with the boundaries of the plot, the presence of other people's crops, landfill, ravines, peat bogs, etc.
Another important point for the buyer is the privatization of the plot. You should not take a risk if the seller asks for an advance payment and promises to privatize the land as soon as possible or to obtain ownership instead of a deed of permanent use. This is how fraudsters can operate.
If the documents for the plot are not checked in conjunction with the General Plan or other town-planning documentation, there is a risk of buying a plot of LSH (OSH) on the territory of a future factory, park, etc. The purpose of the plot purchase should be in line with the plans stipulated in the General Plan. It happens that land plots for construction are located within protection zones. In such a case, it is either too expensive or practically impossible to obtain permits to build a house.
List of documents for the purchase of a land plot
In order for the transaction to be successful, before buying a land plot, it is necessary to check whether the seller has the following documents:
State land title deed;
passport and identification code of the seller (and spouse, if the owner is married);
marriage/divorce certificate;
written consent of the owner's spouse to sell the plot;
certificate from the cadastral bureau on the absence of encumbrances on the land;
expert evaluation of the plot by an independent specialist licensed by the State Agency for Land Resources;
documents on the absence of debts on the land plot.
After the transaction is concluded, the new owner executes the documents for the land in his own name. To do this, he or she needs to obtain a new State Certificate of Ownership from the local land resources authority.
How a land plot purchase transaction takes place
In Ukraine, a land plot can be purchased either from a private seller or from the state or local authorities through an auction. First, information about the sale of the land plot is published in the media and only after at least 30 days the auction is held. The buyer receives a certificate of ownership for the plot, after which the land is registered in his or her name. In the primary sale of land plots at auction, the cost may be higher than originally stated, but the buyer's risks are minimized.
In the secondary sale of land plots, the buyer may spend less money, but the risk is greater, so it is important to be extremely careful. It is best to buy already privatized land, because if you buy the right to privatization from the seller, you may end up spending an unreasonable amount of time, money and effort on the subsequent privatization of the plot.
Regardless of whether the plot itself or the rights to lease it is purchased, it will not be possible to conclude a sale and purchase agreement in the absence of a cadastral number and registration of the right to land. Also, before formalizing the transaction, you should study the seller's documents to get answers to the following questions:
whether the plot is for sale;
who the actual owner is - an individual, the state, an enterprise, a territorial community;
whether the land has co-owners and whether they agree to the sale;
what confirms the ownership right, whether there is state registration of the right;
what is the actual area of the plot;
whether the intended purpose of the land is recorded in the register of the State Land Commission (SLC).
An important stage of the land purchase transaction is to check the land plot for boundary problems, errors in documents, arrests and bans. To avoid problems in the future, it is necessary to check whether there is information about the plot in the State Land Cadastre. You should also make sure that the boundaries of the plot do not overlap with other plots, its shape and location on the map visually correspond to its location on the ground.
It is important to note that in some cases even sellers are not aware of errors in the land registry and documents, so it is best for the buyer to double-check all documents and registers with a specialist, such as an experienced realtor.
The land purchase transaction is concluded in the presence of both parties and a notary. A notary can only certify the purchase and sale of land if all necessary documents are present: title deed, extract from the State Land Committee, expert evaluation and, if necessary, the consent of co-owners/spouse/guardianship authorities.
Additional expenses when buying a land plot
When buying a land plot, as well as any other real estate, there are mandatory additional costs. Thus, when formalizing the transaction with a notary, it is necessary to pay a state duty in the amount of 1% of the amount of the plot, but not less than the expert valuation. Also, the seller or the buyer (as agreed by the parties) pays for extracts from registers requested by the notary and certification of the consent of the spouse, if the owner is married.
If the seller owns the land plot for less than 3 years, there are additional costs. In this case, you will also have to pay personal income tax in the amount of 5% of the land value (for residents of Ukraine) or 18% of the land plot value (for non-residents).
Why you should turn to a real estate agency to buy a plot of land
It is possible to buy a land plot on your own, without contacting either realtors or lawyers. But in this case, the buyer's risks are significantly higher than when cooperating with professionals. If there is no experience in buying land, you should not risk your money and formalize the transaction without the help of experienced professionals.
What are the advantages of contacting the real estate agency "Mayak" when buying a land plot:
Experienced realtors who know the real estate market of Kyiv and Kyiv region and can pick up suitable land options for the buyer in the shortest possible time;
comfortable organization of viewings and competent negotiation with the seller to get the best price;
reducing the risks of the buyer to a minimum, as the agency has its own lawyers who check each document;
assistance with any organizational issues.
If you decide to purchase a land plot, contact the professionals of "Mayak" real estate agency to avoid wasting time and nerves, and to get the most favorable offers in the market.
