New Civil Code Passed by Ukraine's Parliament Poses Risks for Property Owners

Usufruct Right Introduced in Updated Civil Code

According to ХВИЛЯ: Ukraine's parliament, the Verkhovna Rada, has approved a new Civil Code in its first reading, strengthening the legal concept of usufruct. This grants a person the right to use someone else's property and derive benefits from it without the owner's consent, based on a court decision. Journalist Iryna Polyakova has outlined the risks this poses to homeowners and offered advice on protecting property.

Under the new provisions, usufruct is defined as the right of an individual to use another's property and gain profit from it without being the owner. Crucially, a court can establish this right without the owner's approval if it finds sufficient grounds, potentially complicating matters for those who own homes.

Iryna Polyakova: 'Although the owner will formally remain the owner, managing the property, selling it, or evicting someone will become significantly more difficult.'

Recommendations for Property Protection

Polyakova stressed the importance of following certain rules to safeguard property. Specifically, the journalist recommends:

• Rule one: never allow anyone to use your home without a written agreement.
• Rule two: explicitly state in the contract that the user acquires no property rights, including usufruct.
• Rule three: to terminate residency, send a written notice with clear deadlines.

It should be noted that the new Civil Code has not yet been finally adopted, with a second reading still ahead. However, it is already important to pay attention to the potential risks that homeowners may face.

The changes to the Civil Code could significantly impact the real estate market and legal relations between property owners and users. Since the right of usufruct can be established without the owner's consent, this increases risks for those who rent out their homes or allow others to use them. Homeowners should take steps today to protect their rights, as having proper documents and contracts in place can substantially reduce potential legal consequences in the future.

As the legal landscape evolves, it's crucial for property owners to stay informed about recent legislative changes. In addition to the potential implications of the new Civil Code, the recent law recognizing verbal agreements in contract formation may further complicate property rights and obligations. Understanding these developments can help homeowners navigate the risks associated with property management more effectively.