On 20 December 2011, the Parliament of Ukraine adopted the Law of Ukraine "On Amendments to several Legislative Acts of Ukraine with regards to Strengthening of Control over the Conclusion of Pledge Agreements and Mortgage Agreements and the Title to Them" No. 4188-VI (the "Law"). The Law became effective on 13 January 2012.
The Law amends the Land Code of Ukraine No. 2768-III, dated 25 October 2001, as amended (the "Land Code") and makes a cadastral number a pre-requisite for mortgages and pledges over land. Additionally, the Law amends the Law of Ukraine "On Mortgage" No. 898-IV, dated 5 June 2003, as amended (the "Mortgage Law"), such that mortgage agreements must include the cadastral number of the relevant land plot as well as other essential provisions which help to identify it.
As indicated in the explanatory note to the Law, these amendments were enacted to help eliminate borrowers from mortgaging land plots which they did not own or which did not exist. The amendments should provide a clearer means of identifying land plots and preventing similar acts of fraud in the future.
Law: Law of Ukraine "On Amendments to several Legislative Acts of Ukraine regarding Strengthening of Control over the Conclusion of Pledge Agreements and Mortgage Agreements and the Title to Them" No. 4188-VI, dated 20 December 2011.
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The original publication date for this article was 26/01/2012.
