President of Ukraine Volodymyr Zelenskyi has signed the Law ‘On Amendments to the Civil Code of Ukraine on Strengthening the Protection of the Rights of a Good Faith Purchaser’ (Draft Law No. 12089).
So what has changed?
1. Protection through the statute of limitations:
State or local authorities will not be able to reclaim property if more than 10 years have passed since the first registration of ownership.
2. Narrow list of exceptions:
Even after 10 years, the state can reclaim property, but only if it: – is a critical infrastructure facility, – is a strategic facility, – is a defence facility, – belongs to a nature reserve fund, hydraulic structures or is a cultural heritage monument.
3. A bona fide purchaser receives compensation:
If the court does decide to transfer the property back to the state, it must first deposit compensation with the court, and only then can the property be reclaimed.
4. The law has retroactive effect in terms of: – compensation for the value of the property; – limitation periods in cases where there is no decision of the first instance court.
What does this mean in practice?
The acquisition of state-owned or municipally owned property is no longer accompanied by the risk of ‘surprises’ in 5, 8 or even 9 years. If the risks remain, the state will compensate for the cost.
These changes are important for the implementation of investment projects, as they significantly reduce legal and operational risks for investors when choosing land plots. Establishing clear and stable legal conditions reduces uncertainty, which is an important factor in ensuring long-term investment.
For more information: https://zakon.rada.gov.ua/laws/show/4292-IX#Text (the Law enters into force on 09.04.2025)
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