Verkhovna Rada Supports Draft Law on Protection of Good Faith Purchasers: What Will Change?
Kyiv • UNN
The Verkhovna Rada has passed in the first reading the draft law No. 12089 on strengthening the protection of the rights of bona fide purchasers. The document establishes a 10-year period for challenging unlawful acquisition of property and provides for compensation mechanisms.
The Parliament has adopted in the first reading the draft law "On Amendments to the Civil Code of Ukraine on Strengthening the Protection of the Rights of a Good Faith Purchaser" (No. 12089). This was reported by UNN with reference to MP Yaroslav Zheleznyak.
"The Rada adopted in the first reading the draft law #12089 "On a bona fide purchaser," Zheleznyak wrote.
According to the MP, the document provides for a time limit for the state and the community to file a lawsuit to appeal court decisions that the state and the community, as landowners, were not aware of. The draft law was voted for by 246 MPs.
According to the explanatory note to the document, the adoption of the draft law will provide a proper basis for law enforcement in cases of reclamation of property from a bona fide purchaser. In addition, will resolve the issue of compensation to a bona fide purchaser when reclaiming property in favor of the state or a territorial community and further compensation for damage at the expense of the guilty parties in favor of the state or a territorial community.
The day before , the Union of Ukrainian Entrepreneurs called for the immediate adoption of draft law No. 12089.
According to the CJEU, the document:
- Establishes a 10-year period for challenging the unlawful acquisition of property, which is significantly longer than the standard 3-year limitation period. This gives law enforcement agencies sufficient time to verify the legality of the acquisition.
- It does not apply to critical infrastructure, strategic land, cultural heritage and nature reserves, which is especially important in times of war.
- For the first time, the law makes state and local governments responsible for land allocation. They will be obliged to provide compensation for the market value of the property, and lawsuits may be filed against specific individuals who made illegal decisions.
- It does not apply to fraudulent schemes or those who knew about the unfairness of the grounds for acquiring property.
