Essence of the Law:
The law amends the Civil Code of Ukraine to strengthen the protection of rights of bona fide property acquirers. A 10-year period is established, after which the state or territorial community cannot claim property from a bona fide acquirer. A mechanism for mandatory compensation of property value to a bona fide acquirer is introduced in case of property claim by the state.
Structure and Main Provisions:
1. Amendments to the Civil Code of Ukraine regarding:
– commencement of the statute of limitations for property claim
– conditions for property claim from a bona fide acquirer
– compensation for the value of claimed property
2. Amendments to procedural codes concerning the procedure for hearing property claim cases
3. Amendments to the law on state registration of real estate rights
Key Innovations:
1. The state/community cannot claim property after 10 years from the first ownership right registration (except for strategic objects, defense lands, etc.)
2. When claiming property, the state must preliminarily deposit its value with the court
3. Compensation is made without filing a separate lawsuit by the bona fide acquirer
4. The state receives the right of recourse against the guilty party regarding the paid compensation
5. The law has retroactive effect concerning compensation and calculation of property claim periods
