News (#10 October 2016)

Law Digest

New procedure for state registration of rights to immovable property

The Government has revised the rules for state registration of real estate by redrafting the Procedure for State Registration of Rights to Immovable Property and its Encumbrances (as approved by the Cabinet of Ministers Resolution No.1127 of 25 December 2015).

Thus, the possibility was provided for the submission of copies of documents required for state registration if the original of the documents remain in files held by public authorities, local self-government bodies. In such case the copies shall be made directly by those authorities.

The list of registers, from which the state registrar is obliged to use information when considering application and documents for state registration, was extended. Thus, in addition to information from the Real Property Title Registry, the Unified register on restraint on alienation of items of immovable property and the State Register of Mortgages, data from other information systems will be used, access to which is provided to the state registrar, in particular, from the State Land Cadastre and the Unified Register of Documents giving the right to perform preparatory and construction works and certifying acceptance of completed construction objects, information on return on the finalization, denial of issue, cancellation and revocation of the said documents (hereinafter — the Unified register of documents). In particular, it is envisaged that information about the document, which certifies acceptance of a completed construction object, will be received by the state registrar in real-time directly from the Unified Register of Documents.

The list of cases, when application for state registration of rights to real estate may be submitted in electronic form, including in the event of state registration, was extended.

The peculiarities of registration of property rights on the basis of statements of the heir and the judgment are also stated.

Under the new rules a second copy of the certificate on state registration shall be provided to the applicant only at his/her request.

 

State registrars now obliged to check court decisions in registry first

On 8 September the Cabinet of Ministers adopted a Resolution which ordered notaries and other subjects of registration to verify judicial decisions on the possibility of their falsification prior to the conducting of any registration procedures. This activity is aimed at fighting raider seizure of property through fabricated court decisions.

 

Principle of zero-liability introduced

On 9 September the National Bank of Ukraine Board Resolution No.382 of 6 September On Amendments to Some Legislative Acts of the NBU came into effect.

Changes were introduced to the Regulation on the procedure of issue of electronic means of payment and of conducting transactions with their use, according to which the terms of agreement between a bank and the user on use of electronic means of payment shall not contain any requirements as for absolute liability for incorrect translation of the user of electronic means of payment. An exception shall be considered proven acts or omissions of the user, which led to loss of electronic means of payment, disclosure of the PIN or of any other information that provides means for initiating a payment transaction.

The so-called “principle of zero-liability” was introduced in Ukraine by the VISA system for its card holders in August 2016. That is, if fraudsters steal money from a customer’s card, the bank will be obliged to compensate the latter all his/her financial losses, unless it is proven that the theft of the money was caused by the client himself/herself.

 

NBU legalized BankID system

The National Bank of Ukraine has approved the procedure for the functioning of BankID, a unified national system of electronic remote identification of private individuals and legal entities.

This procedure regulates interaction of banks with NBU BankID system and with the parties to administrative services provision, also setting out the conditions and procedure for connecting subscribers to the BankID system. The Ministry of Justice’s portal, the State portal of administrative services of the Ministry of Economic Development and Trade, as well as administrative services portal of the city of Lviv are already connected to BankID.

JSC Oschadbank and PJSC First Ukrainian International Bank are already connected to the system, while JSC OTP Bank, JSC UkrSibbank, PJSC Ukrsotsbank (UniCredit Bank) have applied for connection.

 

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