The closer to the opening of the land market, the more willing to understand the details of the process of acquiring shares. Today, quite a lot of "share hunters" have placed many ads such as "buy shares expensive."

The situation is not surprising. In my opinion, there may be more people willing to buy land today than those who would like to sell it. To buy or not to buy is everyone's business. However, potential buyers of land need to be careful - not everything is as simple as it seems at first glance.

Volodymyr Nagorny, Head of the Department of Land and Property Relations of MHP

Land tenure today is quite a difficult thing. What troubles can await you after buying agricultural land?

I would divide them into several groups:

1. Qualitative characteristics of the object of acquisition.

Land is a part of the earth's surface, which may have its own specifics: relief, afforestation, waterlogging or, conversely, lack of moisture, low soil fertility. And if the relief and afforestation can be seen with the naked eye on the spot, then the level of moisture or soil fertility without special tools, knowledge and skills can not be determined.

Without analyzing such factors, in any case do not decide to purchase land, as you can buy unusable territory.

It is unlikely to return.

2. Quantitative characteristics of the object of acquisition.

Quite often, land shares that members of collective farms received in private ownership consisted of several plots of land, and although these are currently separate real estate, but as a rule, they will be sold in lots. That is, buying a plot of land, in addition, you can get one or more plots of gardens, hayfields or pastures. Such particles are usually of no particular value, as they are unsuitable or not at all suitable for the main type of use - crop production.

3. Legal characteristics of the object of acquisition.

80% of agricultural land in Ukraine today is used through lease, which, in turn, is quite regulated by current legislation and, as a rule, registered by the state (in this case - recognized as legitimate). It can be stated with sufficient probability that 8 plots out of 10 that will be sold after July 1, 2021 will be burdened with rent. From my own practice, I can say that lease agreements, which contain a provision stating that they terminate due to a change in the owner of the land, are extremely rare. Therefore, be prepared to communicate with a third party, the Lessee, during and after the acquisition of the land.

Competitive relations are so suited to tenants that they, increasing the amount of rent, do not always have time to make changes to land lease agreements on the rent rate.

Therefore, it is not uncommon for the previous owner to receive a much higher rental rate than the one formally fixed in the contract.

Moreover, an unscrupulous seller may hide some facts from you. For example, the fact of receiving an advance from the tenant for several years or worse for the entire period of the contract. As a rule, any land is purchased for personal use, or for lease in order to obtain a certain income. If you can't use the land, or don't get the planned income, that's also not the best reason to buy it.

In conclusion, I would like to add: if you are planning to buy agricultural land, think about the nuances (this is not an exclusive list) and do not risk investing in assets that do not provide the desired result.

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