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From now on, it is possible to purchase leased state and municipal property only at auction — law adopted

VR

On January 16, the Verkhovna Rada adopted as a basis bill 12230 regarding the peculiarities of privatization of state and municipal property leased.

Yes, from Article 18 of the Law "On the privatization of state and municipal property" It is proposed to exclude the rule that privatization of state or municipal property transferred for lease can be carried out through redemption. Instead, only the rule regarding sale at auction remains.

It is established that the lessee who has made inalienable improvements to the leased property has a preemptive right to purchase (repurchase) such property (object) (building, structure, non-residential premises) at the price offered during the auction by the winner of such auction, if the conditions specified by the Cabinet of Ministers of Ukraine are met. The procedure for exercising the preemptive right to purchase leased property (object) at an auction with a preemptive right, holding such an auction, making compensation (offsetting) and restrictions on compensation (offsetting) the cost of inalienable improvements to the leased property, determining the cost of inalienable improvements and the object of privatization (starting price of the object of privatization) are determined by the Cabinet of Ministers.

In addition, the Law "On Lease of State and Communal Property" excludes the provision regarding compensation for the cost of integral improvements made by the lessee.

Thus, in the event of acceptance of the changes, the tenant will have the right to retain the improvements to the leased property made by him as a result of the repair, made at his own expense, provided that they can be separated from the property leased by him without causing damage to such property. If the tenant at his own expense has made improvements to the leased property as a result of the major repair with the consent of the authorized body and in accordance with the requirements of Article 21 of this Law, the tenant has the right to deduct his expenses within the framework of such repairs to the leased property from the rent in accordance with the Procedure for the Transfer of Property for Lease, unless otherwise specified in the lease agreement.

The cost of improvements to the leased property made as a result of major repairs and made by the lessee without the consent of the authorized body specified in Article 21 of this Law is not subject to deduction; such improvements are, respectively, state or municipal property.

As the initiators of the bill indicate, it is proposed to change the approach to the disposal of such state and municipal facilities and to provide for the exclusion of the tenant's right to directly purchase such property from the Law "On Privatization of State and Municipal Property."

At the same time, the mechanism of holding an auction with the tenant's preemptive right to purchase property at the auction at the highest price offered during the auction will be introduced. This model of an auction with a preemptive right has already successfully proven itself in the areas of land auctions, as well as auctions for the lease of state and municipal property.

In turn, the procedure for the winner to exercise such a preemptive right to purchase leased property (object) at an auction with a preemptive right will be determined by the Cabinet of Ministers.

Also, the relevant provisions relating to the implementation and compensation to the current tenant of the cost of integral improvements will be excluded from the Law "On Lease of State and Communal Property", instead, the possibility of deducting the costs incurred by the tenant as a result of major repairs within the framework of such repairs of the leased property against the rent will be established.

In addition, a transition period of 1 year will be introduced, which will allow tenants who have received permission to make essential improvements and have begun the redemption procedure to complete the redemption of such objects. "This will make it impossible to buy out leased state and municipal property without competition." — the deputies point out.

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