The UBA Committee Calls to Reject the Bill on Real Estate Activity (№ 3618), Some Norms Contradicting the Constitution

2020-07-09

KYIV - July 09, 2020. The UBA Committee on Real Estate and Construction appealed to the Parliamentary Committee on Economic Development to reject the draft law "On Real Estate Activity bin Ukraine" (Reg. № 3618).

Lawyers stressed that the document restricts the constitutional rights of owners.

"The introduction of requirement to carry out any real estate transactions only with the participation of realtors restricts the rights of owners to independently and freely dispose of their real estate," – the statement reads.

The bill poses a threat to the interests of consumers, who have the right to necessary, accessible, reliable and timely information.

In particular, the subject of real estate activity, given the qualification requirements set out in the bill, is incapable to duly inform consumers about the potential consequences of their real estate transactions, as well as provide reliable information related to real estate transactions. Such information can be communicated to the consumer only by a professional with specific knowledge, such as a lawyer, otherwise such information will be contrary to consumer protection law.

Bill No 3618 poses corruption risks.

The Committee stressed that, “Granting the status of owner, administrator and holder of the Unified Information Base of a self-governing organization without proper state regulation and control will lead to fraud, corruption and risks for the property owner to possess and dispose of their property. Not to mention that duplication of information in several sources always leads to confusion and incorrect display of information, the correction of which is usually the responsibility of the owner.

If adopted, the bill might create a conflict between the norms of national legislation.

Thus, the document does not propose changes to the relevant regulations on bankruptcy proceedings and enforcement proceedings.

The UBA Committee on Real Estate and Construction is convinced that the draft law "On Real Estate Activity in Ukraine" does not comply with the principles of state regulatory policy, as it does not ensure the balance of interests of businesses, citizens and the state. In addition, the document does not offer effective legal regulation of real estate activities.

For more information, please visit the UBA web-site (available in Ukrainian).

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