16:34 18.05.2021

Rada approves procedure for sale of land plots at electronic auctions

3 min read
Rada approves procedure for sale of land plots at electronic auctions

The Verkhovna Rada has adopted bill No. 2195 on amendments to some legislative acts regarding the sale at electronic auctions of land plots in state and communal ownership or rights to them.

Some 272 MPs voted for the bill (with the minimum required 226 votes) at a plenary session on Tuesday.

According to an explanatory note to the document, the bill ensures publicity and transparency of the sale and transfer for use of land plots of state and communal property in the electronic trading system, conducted in the format of an auction in real time.

According to the document, land tenders will be held in accordance with the agreement between the organizer of the tenders and the operator of the electronic platform. The decision to hold a land auction will be made by their organizer, indicating the starting price of the lot, the term and other conditions for the use of the land plot, as well as the person authorized by him to conclude the relevant contract.

The amount of remuneration to the operator of the electronic platform, the procedure for its payment and return, as well as other details of the organization of land tenders will be determined by the Cabinet of Ministers of Ukraine in the future in accordance with the established procedure.

The bill, among other things, excludes the participation of the "executor" from among the subjects of land auctions – the organizer and operators of electronic platforms will take part in the organization and conduct of land auctions. In this regard, participants will pay their contributions not to the settlement accounts of the executor, but to the accounts of the trading platform operators.

Based on the results of the auction, a contract of purchase and sale, lease, development rights or inheritance of the land will be concluded with the participant who offered the highest price (price offer) for the land plot or the highest payment for its use.

The innovation of the document is a change in the registration and deposit fees, the amount of which in the future will be determined taking into account the requirements of the Cabinet of Ministers of Ukraine, but shall not be less than 30% of the starting sale price of the land plot (the starting amount of the annual lease fee of the land plot).

The bill changes the conditions for non-refund of deposit fees: the fee will not be refunded to the participants if none of them made the auction step during the auction, and the winner will not be able to return the deposit fee if he does not sign the protocol and the agreement on the results of the auction within the specified period, or does not pay for the purchased item.

The document provides for the distribution of approaches to setting the starting price of land plots depending on their intended purpose. The starting price of farmland in state and communal ownership is considered equal to its prescribed pecuniary value and the price of other state and communal lands cannot be lower than the expert monetary value of the site.

The bill provides for the introduction of the principle that one lot of the auction may consist of only one land plot or rights to it.

According to an explanatory note, the adoption of bill No. 2195 will optimize legislation on the sale and transfer of land plots of state and municipal property for use, improve and speed up the mechanisms and procedures for its sale and transfer, increase the economic efficiency of auctions and increase receipts of state and local budgets.

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