You're reading: Cabinet authorizes ProZorro.Sale to conduct electronic land auctions

The state enterprise ProZorro.Sale, subordinate to the Ministry of Economy, was appointed administrator of land tenders for the sale of land plots and the acquisition of rights to use them (lease, superficies, emphyteusis), and also approved the requirements for the preparation and conduct of land tenders.

The corresponding resolution was adopted by the Cabinet of Ministers at a meeting on Sept. 22, setting also the deadline for its technical and legal revision at one day.

The government resolution also determines the form of documentation for the lot to be placed in the electronic trading system for land tenders, as well as the list of documents required to confirm the compliance of a potential buyer with the requirements of the Land Code of Ukraine.

According to an explanatory note to the document, conducting electronic land auctions will allow increasing the economic efficiency of the sale of land plots and rights to them.

As reported, on May 18, 2021, the Verkhovna Rada adopted as a whole bill No. 2195 on amendments to the Land Code of Ukraine and the law on land lease regarding the sale of state and municipal land plots at electronic auctions, or the rights to them.

The document specifies that land tenders will be held in accordance with the agreement between the organizer of the tenders and the operator of the electronic platform. The decision to hold a land auction will be made by their organizer, indicating the starting price of the lot, the term and other conditions for the use of the land plot, as well as the person authorized by him to conclude the relevant contract.

Based on the results of the auction, a contract of purchase and sale, lease, development rights or inheritance of the land will be concluded with the participant who offered the highest price (price offer) for the land plot or the highest fee for using it.

The innovation of the document is a change in the registration and guarantee fees, the amount of which in the future will be determined taking into account the requirements of the Cabinet of Ministers, but will not be less than 30% of the starting sale price of the land plot (the starting size of the annual lease of the land plot).