The provisions of Article 41 of the Constitution of Ukraine, Article 321 of the Civil Code of Ukraine, and Article 1 of the First Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms of 1950 secure the inviolability of private property rights. This right includes the ownership, use, and disposal of property without anyone’s permission. According to Article 16 of the Civil Code of Ukraine,  persons who believe that their property rights have been violated may file a lawsuit in court.

 

Please note! Recognition of property rights through court is often not an end in itself for the plaintiff. Ultimately, it may be necessary to reclaim property from someone else’s illegal appropriation or remove obstacles in the execution of the right of use and disposal (a vindication or negatory claim). Moreover, such related demands can be combined by the plaintiff in one statement of claim (Article 188 of the Civil Procedure Code of Ukraine). For example, one claim is made for the recognition of ownership of property and for reclaiming of property from someone else’s illegal possession.

 

Сases in this category are often characterized by high complexity. The Lawrange attorneys offer their assistance since they have accumulated enough practical experience to develop the winning strategy. Contact us for a consultation to find out the chances of success in your specific situation.

 

Types of property for recognition of ownership through the court

The object of recognition of property rights in court can be both real and movable property. However, when going to court, you should take into account the determination of whether an object belongs to movable or immovable property in accordance with Article 181 of the Civil Code of Ukraine.

 

  1. The immovable property (real estate) include land plots and objects located there. Their movement is impossible while maintaining their original qualities: residential buildings, apartments, unfinished construction projects, utility, industrial, warehouse and commercial premises.
  2. The movable property (things) includes objects that can be freely moved in space: vehicles, money in accounts in banking institutions, securities, and so on.

 

Please note! When filing a claim for recognition of property rights, it is necessary to take into account not only the general norms of the current legislation but also the relevant special legal acts that regulate legal relations regarding a specific property.

 

Situations in which recognition of ownership rights through the court may be required

To recognize property rights, a claim may be filed by:

 

  • a person who is already the owner;
  • a person is not the owner but wants to become one (for example, by inheritance, for an ownerless thing, for an unauthorized construction project, by acquisitive prescription, and so on).

 

Please note! Specifically, cases when a person can go to court are enshrined in Article 392 of the Civil Code of Ukraine:

 

  1. if right of ownership of the property is disputed by another person or persons;
  2. if documents certifying an ownership are lost (that is, title documents for the property).

 

Contract partners, local government and state authorities, co-owners of property, other heirs, and law enforcement agencies can challenge a person’s right of ownership. For example, invalidating a purchase and sale agreement or a will, restoring the legal rights and interests of persons after fraudulent actions regarding their property, and so on. Disputes about ownership can arise if several people have claims to one thing.

 

Please note! Legislation enshrines presumption of legality of acquisition of property rights. Such a right is a priori considered legally acquired until denials of this right are identified. If the right of ownership is not disputed by anyone, then there is no need to file a lawsuit.

 

Here are examples of several specific situations in which people contact us to file a claim for recognition of ownership of certain objects:

 

  • couples get divorced and divide property, but it turns out that real estate or cars are registered not as common joint property but as the personal property of one of the spouses;
  • there is no notarization of the property agreement in the case where such certification is mandatory by law;
  • the notary refuses to issue the heir a certificate of right to inheritance because there are no documents confirming the relationship with the testator, or for another reason;
  • the shared owner wants to allocate in kind or forcibly buy out the own part of the property from the co-owners.

 

Is it necessary to register property rights in case a court decision is received?

In accordance with the law, rights to certain types of property (primarily, real estate) are necessarily subject to state registration. It is state registration that is considered the moment when ownership of such objects arises. In particular, from the date of registration, rights to real estate arise, which is secured by part 4 of article 334 of the Civil Code of Ukraine and paragraph 9 of part 1 of article 27 of the Law of Ukraine No. 1952-IV “On state registration of rights to real estate and their burdens” dated 07/01/2004.

 

Although a court decision is a legal decision document that relates to the property (like a purchase and sale agreement), this is only the basis for the emergence of ownership rights. Entering data about the object and its owner into the appropriate state registry is a mandatory step! To implement it, you need to contact your local ASC.

 

What data must be included in the court decision so that the object can be included in the registry?

Paragraph 9 of Part 1 of Article 27 of the Law of Ukraine No. 1952-IV confirms that for state registration of ownership of a property, the judgment must enter into force. It means that the deadline for filing an appeal has expired, which can be filed within 30 days by all participants in the case, even if such a complaint has not been filed. Accordingly, if we are considering a case in an appellate court, it is necessary to take into account the deadlines for filing a cassation appeal.

 

Registration of property rights by court decision on the property is carried out, taking into account the following data in such decision:

 

  • date of issue (accordingly, the date of entry into force is calculated from it);
  • information about the person whose rights to the object are recognized by the court;
  • complete information on the object: what type of property it is, address, area, and so on;
  • optional – if this is a house in the private sector, then information on additional structures (outbuildings, garages, etc.) is also needed.

 

Which governing body carries out registration of ownership of real estate by court decision?

According to Article 10 of the Law of Ukraine No. 1952-IV, state registrars, namely notaries and relevant employees of the Centers for the Provision of Administrative Services (ASC), have the authority to do this.

 

Based on the court’s decision, what documents are required to register property rights?

To enter data about an object and its owner into the State Register of Property Rights to Real Estate, you must submit to the registrar:

 

  • a court decision that has entered into force;
  • passport and tax number (identification code) of the owner;
  • technical passport for the corresponding property.

 

For your information! If the owner is not a private person but a company, then it is necessary to submit constituent documents instead of a passport.

 

Legal services in matters of recognition of property rights through the court

By contacting Lawrange, you can receive a range of services for recognition of property rights through the court or order separately from any option from the list below:

 

  • Oral or written consultation/legal conclusion based on the results of an analysis of the client’s situation and materials, determining the prospects of the case in court.
  • Preparation of a statement of claim and other necessary procedural documents for the court.
  • Representation of the client’s interests in court: preliminary collection of evidence, development of strategy, forecasting possible courses of action on the part of the defendant, and direct participation in court hearings.
  • If necessary, analyze the court decision and appeal it by filing an appeal/cassation complaint.

 

Consultations on establishing ownership rights

The legal process often entails considerable financial costs, not to mention the psychological aspect in cases where a dispute between close people (for example, former spouses or relatives-heirs) is resolved in this way.

 

That’s why it is important to know in advance what the plaintiff’s chances are of achieving own goal. If they are extremely low, then it is better not to start a trial. It is legal advice that helps answer this question. We always recommend that clients obtain it from us before filing a claim.

 

Collection of evidence

There is no point in going to court with just one statement of claim. It is worth attaching evidence collected in advance to it. And our lawyer will help you do this. If necessary, to obtain documents and information, our specialist can use such a means as filing a lawyer’s request. What kind of evidence is needed depends on the specifics of the case.

 

For example, if we are talking about recognition of property rights by inheritance, the evidence is as follows: the notary’s refusal to issue a certificate of inheritance, documents confirming the rights of the heir (confirmation of family ties), witness statements, and so on.

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Preparation of a statement of claim for recognition of rights to real estate

The statement of claim must be drawn up correctly, both in content and form (in accordance with the requirements of the Civil Procedure Code of Ukraine). If such requirements are not met, instead of opening proceedings in the case, the court may leave the application without progress and issue an appropriate ruling.

 

The plaintiff is given a period to eliminate the shortcomings, and this, in fact, is an undesirable pause in the consideration of the case. To avoid such a pause, it is better to immediately entrust the preparation of the claim and the preparation of accompanying documents to our specialist.

 

Representation of interests in court

In cases of recognition of property rights, Lawrange specialists can represent the interests of both the plaintiff and the defendant. If you are a plaintiff, then your defendant in this category of cases may be a person who does not recognize or dispute your ownership rights on the property. For example, a notary who refuses to accept the heir’s application may not recognize such a right, but other heirs may object to it.

 

Analysis of the court decision

The need to analyze a court decision may arise in two cases: 1) if, for some reason, you are not sure that on the basis of this decision, it will be possible to register property rights; 2) if the court decision is not in your favor, and you plan to appeal it. In the latter case, it is necessary to determine the chances of success in such an appeal, and if they are low, then it makes no sense to appeal to the appellate authority.

 

Appealing a court decision

Our team has accumulated enough experience in supporting cases on recognition of property rights on appeal and even in the Supreme Court. At the same time, we are ready to go to a higher authority with you as a plaintiff and to support you if the defendant files an appeal/cassation complaint.

 

Establishing ownership rights to housing in a new building

Ownership of new buildings (residential buildings, apartments, other buildings, and structures) arises after the completion of construction and commissioning from the moment of state registration. However, new home buyers often invest their money during the construction phase or even before it begins. Sometimes, for one reason or another, after completion of construction, the developer refuses to transfer the rights to housing to the investor. Such rights are transferred by an act to another person who registers title and owns the property.

 

In such circumstances, the only way out is recognition of property rights in court. Moreover, claims for recognition of investor ownership of new buildings are quite common. The chances of winning for an investor as a plaintiff vary depending on what kind of agreement is concluded between him and the developer (defendant in court).

 

The most common between developers and investors are:

 

  • preliminary purchase and sale agreements;
  • investment agreements;
  • agreements on participation in the construction financing fund (CFF);
  • derivatives/forward contracts;
  • contracts for the sale and purchase of property rights.

 

For your information! The worst forecast for an investor in the court is having a preliminary agreement with the developer, since only under it does the investor receive the right to buy an apartment in the future. In such circumstances, reasonable demands in court may only be for termination of the contract and for the return of funds, but not for recognition of ownership of the apartment.

 

For other agreements, forecasts are much more optimistic. However, they depend on the specific features of a particular situation. Judicial practice in this category of cases is characterized by inconsistency and even contradiction. One of the key points is whether the investor has a deed for the apartment.

 

Recognition of property rights in case of inheritance

The need for an heir to file a claim in court to recognize rights to property by inheritance may arise for several reasons:

 

  1. no property documents (the testator did not formalize rights or did not complete the registration, did not privatize the housing and land plot, and so on);
  2. rights to inherited property are disputed by another heir or local government body.

 

In such cases, the notary refuses to accept the application for registration of inheritance. Such a refusal by the notary is one of those documents that must be attached to the statement of claim. In addition, you will need:

 

  • evidence of relationship with the testator;
  • death certificate of the testator;
  • any documents that confirm the testator’s rights to property, for example, a purchase and sale agreement or a warrant.

 

Such claims are considered in accordance with the general claim procedure at the location of the defendant or property. If there is evidence and justification, and the correct execution of procedural documents, the courts will preferentially satisfy the claims of the heirs.

 

Determination of ownership of building materials through the court

So-called long-term construction and unfinished construction is a common phenomenon in the Ukrainian real estate market. Developers do not always fulfill their promises regarding the completion of construction and commissioning of new buildings. Among the reasons is a lack of funds due to the rise in the prices of building materials during the construction process. That is, the funds invested by investors are not enough.

 

In such situations, investors can file a claim for recognition of ownership: 1) to an unfinished construction site; 2) for building materials and structural elements of the house. In this case, the terms of the contract with the developer are important. If, after analyzing the contract by a lawyer, good prospects in court are confirmed, then it is quite possible to file a lawsuit to obtain the rights to building materials / an unfinished construction project together with other investors and then complete the house and register the rights to the apartment.

 

Please note! Since the legislation does not establish a lower limit for the stage of readiness of an object, it is possible to claim rights to an unfinished construction project even if it is 10-20% ready.

 

In addition to situations with unfinished construction (unfinished and long-term construction), claims for recognition of ownership of building materials are sometimes advisable if spouses built a house together but did not complete the construction and get divorced.

 

Confirmation of ownership by prescription

One of the legal ways to acquire ownership is by prescription. We are talking about the fact that a person: 1) received in good faith property that does not belong to anyone else; 2) manages to own it continuously and openly; 3) the period of such ownership is from 5 years for movable property, from 10 years for real estate and from 15 years for a land plot. At the same time, state registration of a person’s property rights, even if all the above conditions are met, is carried out on the basis of a court decision.

 

Please note! The defendant in a claim for recognition of property rights by acquisitive prescription may be the previous owner of the property/his successor or the body authorized to manage this property of the relevant territorial community.

 

Establishing ownership rights to an unauthorized construction site

Although so-called self-builds are not a rare phenomenon, in some cases, they are quite difficult to legitimize. An unauthorized real estate property cannot be sold/exchanged/transferred by inheritance, and communications cannot be legally connected to it. Moreover, the law provides for a fine for self-building.

 

Please note! Considering the scale of the problem, the legislator made concessions: in many cases, such objects can be legalized without going to court. There is a so-called “construction amnesty” for houses built from 1992 to 2015, as well as a general and simplified procedure for registering objects. The need to go to the court arises only in certain complex cases.

 

The court considers cases only regarding completed construction projects. Wherein the court may refuse to satisfy the claims, if unauthorized construction violates any building codes and standards or the owner does not have rights to the land (ownership or lease agreement). If there are not enough documents, you have to go through a lengthy process of collecting them before the trial.

 

Determination of ownership of a land plot through the court

Among the grounds for obtaining land rights are: transfer of these rights by inheritance (including if the testator began but did not complete the privatization procedure regarding the land plot), prescription of use (from 15 years and more), presence on the property, which is property.

 

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Please note! In cases related to land plots – including shares – additional difficulties may arise, since such lands may not have a cadastral number. In this case, paper documents may be lost. However, in this case you can count on help of Lawrange lawyers, which will offer effective algorithms of action so that the owner can register land in accordance with all the rules.

 

Cost and terms of registration of property rights in court

Since the situations in which it is carried out the recognition of property rights in court are different, then the cost of the procedure is different. In a number of cases, our specialists carry out a rather complex process of collecting evidence for the court, submitting attorney requests, initiating examinations, and restoring lost documents. If you need to know the financial costs to solve your problem, contact us, and we will tell you.

 

Why you should contact Lawrange

Our team provides legal services for more than 10 years, receiving constantly grateful feedback from customers. We have successful cases for almost each of the categories of cases described above. At the same time, we always treat every case and all the client’s wishes with great care.

 

If there is even the slightest chance of avoiding trial and reaching an agreement with the opponent, we definitely suggest that the client try this option. At the same time, members of our team always speak honestly and openly about the prospects, chances, and possible complications of the trial. Together with the client, we set a goal and go towards it, sparing no effort.

 

Conclusions

If we talk about recognition of ownership of property judicially, then we are talking about cases of several categories at once. Such a claim may appear in disputes between former spouses, heirs, developers, investors, and so on. Often, obtaining a court decision on this claim is not the final goal, but only represents a link in solving a larger task. In particular, the property still needs to be reclaimed from someone else’s possession.

 

Moreover, many legal proceedings in this area are quite complex and require considerable experience from lawyers. Pre-trial preliminary preparation is of primary importance in such cases. And if it is carried out diligently and correctly, then you can count on good prognoses in court.

 

FAQ

What are the alternative means of resolving property ownership disputes other than litigation?

In this, as in other categories of disputes, a peaceful settlement can be reached with the other side. To do this, the lawyer conducts negotiations. For example, this could be negotiations with an ex-husband or ex-wife, with other heirs, with a developer, and so on. Much is decided by being an unbiased and neutral attitude lawyer to both sides of the dispute.

 

What are the penalties or consequences for filing false title claims in court?

If we talk about the negative consequences of an unreasonably filed claim, then this is not a fine. Negative consequences may include losing in court or leaving the claim without progress. The plaintiff will incur financial costs in vain without receiving anything in return. Therefore, you should always consult with a lawyer before filing a claim.

 

What are the main advantages and disadvantages of using the judicial route to recognize property rights?

In a number of cases, the judicial procedure for resolving the issue is the only option for obtaining ownership of the property due to a person. Therefore, it is not necessary to indicate the disadvantages and advantages if there are no other options.

 

 

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