• anti-raider law ukraine

Anti-Raiding Law: Registration News

Today, there has come into force the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Improving the State Registration of Rights to Real Estate and Protection of Ownership Rights,” which was adopted by the Verkhovna Rada of Ukraine on October 6, 2016, and has been already called by lawyers and entrepreneurs the Anti-Raiding Law.

Anti-Raiding Law

The Law’s main points concern the introduction of amendments to the Law of Ukraine “On the State Registration of Proprietary Rights to Real Estate and their Encumbrances.” Thus, the Law provides that the state registrar immediately informs the owner of real estate, with respect to which the application for implementation of proper registration acts is filed, which, in the opinion of lawmakers, will make it impossible to implement registration acts concerning real estate of legal entities without the will of the owner (founder).

Innovative was also the fact that implementation of registration acts is suspended on the basis of the court decision, that has taken legal force, to ban the registration acts implementation or on the basis of the real estate owner’s application for the prohibition of registration acts implementation with respect to his own real estate. The state registrar immediately informs the real estate owner about the suspension of registration acts on the basis of a court decision prohibiting the registration.

In case there are registered applications for implementation of registration acts, the state registrar, who reviews such applications, immediately informs the relevant applicants about the suspension of registration acts.

As for the property owners’ notification, the Ministry of Justice explained that it will be made via SMS-informing. However, to take advantage of this service you need to take 3 steps:

  • get a registration number of real estate;
  • register in the property owner’s office and place the property under appropriate control there;
  • indicate the phone number to which the messages will come.

The Rezultat law firm has found out that for today the service is not accessible to users, and therefore it’s unclear now, how the registrars will fulfill the requirements of the Anti-Raiding Law in this part.

It is also obligatory from now that the state registrar uses the information of the State Land Cadastre and the Unified Register of Permits that give the right to perform preparatory and construction works and certify the acceptance into operation of completed objects, as well as information about the return for modification, refusal to issue, cancellation, and annulment of the indicated documents. Also, the state registrar of proprietary rights uses information obtained through information interaction of the State Register of Rights with the Unified State Register of Court Decisions.

This, in our opinion, will prevent the falsification of documents contained in the above-mentioned registers, as well as will reduce the list of documents required for the registration of proprietary rights to real estate, since registrars will be able to download all the necessary documents online, while the applicants will just indicate the documents’ details in their applications.

However, as of today, the Unified Register of Permits is only beginning to be filled, while the Unified State Register of Court Decisions, although filled for many years, still does not contain all court decisions. It is therefore possible that registrars will have to make inquiries to the court in order to obtain properly certified decisions, and the consideration of property owners’ applications will thus extend for weeks or months.

The term for challenging decisions, actions, or inactivity of the state registrar increases in accordance with the Law from thirty to sixty days.

Key changes relating to the Law of Ukraine “On State Registration of Legal Entities, Individual Entrepreneurs, and Public Entities” include the mandatory notarizing the authenticity of signatures of the founder (participant) and their authorized individuals on the statutory document, the transfer act, the entity’s distribution balance, and a declaration of withdrawal from the company, which are submitted for state registration of the legal entity’s changes. While public organizations and charities do not have to notarize in their statutory documents the signatures on the decisions to modify, except when they independently set such a requirement in their statutory documents.

Specialists believe that preventive measures in the form of a notarized contract of sale of the legal entity’s charter capital share would be enough to avoid forgery of documents for the purpose of so-called asset-grabbings. The need to obtain the notarized certifying inscriptions in the statutory documents and distribution balances will only lead to a rise in the administrative service cost as a whole.

Some changes concern the Law of Ukraine “On Electronic Signature,” thus from now on, the ES will be provided solely in the personal presence of the signatories, including officials of enterprises.

In addition, the Law has strengthened criminal and administrative liability. In particular, the Criminal Code has been supplemented with a new article 191-1 “Submitting Forged Documents for State Registration of Rights to Real Estate and their Encumbrances” and there have been introduced a number of amendments to the COA, which provide for sanctions: from fines of 200–2000 tax-exempt minimum incomes, arrest, and up to imprisonment with the deprivation of the right to occupy certain positions.

Consequently, in general, it can be concluded that the principles provided in the Law are definitely a positive move towards the protection of the rights of real estate owners and corporate rights, but the effectiveness of its norms can be proved only by the practice of its application.


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