Minimum Lease Term for Land Lease: What the Legislation Provides.

Ukrainian owners of land shares often lease them to farmers. However, many people do not know that the law establishes restrictions on the minimum term of land lease.

When leasing a plot of land, it is important to discuss not only the amount of rent and conditions for using the land but also to know the minimum lease term.

According to the Land Code of Ukraine, the minimum lease term for land plots depends on their purpose:

Agricultural land – minimum of 7 years. Now, land share owners cannot lease them for a short term, only for a minimum of 7 years. This is done for the stability of the agricultural sector and the rational use of land.

Reclaimed land – minimum of 10 years. This will protect the interests of farmers who invest in the creation and maintenance of reclamation systems.

Non-agricultural land – there is no strict minimum term. For such plots, lease terms are determined by the parties to the contract, allowing for flexible property management.

The law does not allow a land lease agreement for 1-2 years – the minimum term for agricultural land is established in legislation, so a notary or registrar will not register such a short-term agreement.

There are also risks for farmers. If the contracts were short-term, lessees could avoid responsibilities for maintaining and improving soil quality.

Moreover, in such a case, it would be difficult to terminate the contract early, even if the lessee does not fulfill their obligations.

Simple rules when concluding a lease agreement:

• Check the terms of the contract before signing – read all points carefully, especially those concerning the possibility of termination of the agreement.
• Provide for penalties for violations – in case of non-fulfillment of obligations, the lessee should face fines or other consequences.
• Seek advice from lawyers – professional help will help you avoid traps and protect your rights.