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New rules for obtaining information from the State Register of Rights

The legal regulation regarding the real estate sector has undergone dramatic changes over the past two years. The abovementioned began to create a new system for registering rights to real estate and their encumbrances, as a result of which a number of derivative mechanisms were developed, including with the participation of specialists for joining the SRO in the design. Another innovation of the legislator is the openness and general availability of information on state registration of rights and their burdens from the State Register of Rights to Real Estate (hereinafter – the State Register of Rights, State Register of Rights). However, a number of questions arise regarding the advantages and disadvantages of the changes introduced.

Obtaining information from the State Register of Rights

Recall that in accordance with the provisions of the Law of Ukraine “On State Registration of Rights to Real Estate and their Encumbrances” dated July 01, 2004 No. 1952-IV (hereinafter – the Law) of the previous version, such a procedure was provided for the provision of information from the State Register of Rights. Information on real estate was provided exclusively by the state registration authority and / or notary in three forms: extract, information certificate and extract. The legislator, in turn, significantly limited the range of entities that had the right to receive these data. In particular, only owners of real estate, persons who had a real right to property, heirs, as well as owners of an apartment, residential or non-residential premises in an apartment building, had the right to receive information in the form of an extract, if it was a question of creating an association of co-owners of an apartment building (and others similar associations). In addition, the Law also provided for a special circle of entities whose rights extended to receive the holding of an information certificate from the State Register of Rights on the basis of a corresponding request. It was, in particular, about a number of state bodies, the request of which is carried out within their competence and for the implementation of the powers stipulated by law (court, local government, internal affairs bodies, prosecutor’s offices, revenue and duty bodies, security services of Ukraine and other bodies government authority).

The current version of the Law sets forth a new approach to the procedure for obtaining information from the State Register of Rights. As noted above, the legislator emphasized the openness and public availability of such information. At the same time, the Law distinguishes two circles of entities to which information can be provided. Firstly, these are individuals and legal entities and, secondly, these are officials of state authorities, local authorities, courts, internal affairs bodies, prosecution bodies, security services of Ukraine, lawyers and notaries. The legislator argued such a separation with the volume of requested information, which is aimed at protecting the rights and interests of owners or other copyright holders. It has been established that for individuals and legal entities, information from the State Register of Rights is provided only for the real estate object, while the above officials, government bodies, lawyers and notaries have the right to receive information on both the real estate object and the subject of law.

The need for the above changes arose as a result of the adoption of the Law of Ukraine “On Amending Certain Legislative Acts of Ukraine regarding the Determination of the Ultimate Benefits of Legal Entities and Public Figures” No. 1701-VII of October 14, 2014. According to the legislator, this Law will help to reduce corruption in the country, as well as the openness and transparency of the provision of administrative services.

Deficiencies in the application of the previous procedure for obtaining information from the State Register of Rights

It should be noted that during the previous version of the Law of Ukraine “On state registration of rights to real estate and their encumbrances”, as well as the corresponding Procedure for state registration of rights to real estate and their encumbrances, approved by the Cabinet of Ministers of Ukraine dated October 17, 2013 No. 868 the procedure for obtaining information from the State Register of Rights did not have a debugged nature of the work. The copyright holder and the relevant competent authorities quite often encountered obstacles in the timely receipt of information on real estate. Obtaining an extract, for example, was complicated by the poor provision of administrative services, was accompanied by a violation of the order and timing of their provision, as well as the lack of the full amount of information about real estate in the current State Register of Rights, which was not duplicated from previous existing registries, as was supposed by law. In fact, under such conditions, in order to receive the requested information, applicants had to first enter information about such real estate.

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