Ukraine Strengthens Protection of Bona Fide Real Estate Owners
On April 7, 2025, the President of Ukraine has signed a law adopted earlier by Ukrainian Parliament amending the Civil Code of Ukraine, introducing significant changes to the protection of bona fide purchasers of real estate. From now on, the statute of limitations for claims to reclaim property transferred from state or municipal ownership will be calculated from the moment the first owner’s property rights are registered.
Restrictions on Property Reclamation. The new law significantly limits the circumstances under which property acquired under a paid contract by a bona fide purchaser can be reclaimed. Such property can only be reclaimed if it was lost by the owner, stolen, or transferred out of their possession involuntarily.
Statute of Limitations. The state and territorial communities will no longer be able to reclaim real estate if more than 10 years have passed since its transfer into private ownership.
Exceptions for Strategic Assets. The new rules do not apply to critically important facilities, such as infrastructure, strategic enterprises, military properties, nature reserves, hydraulic structures, and cultural heritage sites. These assets, even if they were transferred out of state or municipal ownership, can still be reclaimed regardless of the statute of limitations.
Compensation for Bona Fide Purchasers. If a court orders the return of real estate to the state or a local community, the bona fide purchaser is entitled to compensation at market value. Under the new rules, government authorities or the prosecutor must first deposit the required compensation amount into a court escrow account before a reclamation decision is made.
Retroactive Effect of the Law. The new rules apply not only to future transactions but also to properties acquired before the law’s adoption, provided no court ruling has yet been issued regarding them. This ensures the protection of owners who legally acquired real estate but may still face claims from the state or territorial communities.
The law will take effect the day after its official publication.