Early termination of a land lease agreement
Vasil Kisil & Partners have successfully represented Rele construction company for the second time in a dispute with the Kyiv City Council related to the premature termination of a land lease agreement.
Both the Court of Appeals and the Cassation Court have acknowledged that, after finishing the construction and commissioning of the building, a good-faith lessee of the land plot leased out for construction and maintenance of that building is entitled to rescind the land lease agreement. In view that the title to the premises in the building constructed by the lessee and the right to use the land plot has passed to the new owners of the premises in the building, the courts have arrived at a conclusion that the long-term land lease agreement must be prematurely terminated.
As a result of premature termination of the long-term land lease agreement made for 49 years, the construction company no longer has the duty to pay the rent for another 30 years for the land plot it is not actually using.
Rele Science and Production Firm specializes in the construction of the residential and commercial property.
Senior Associate, Attorney-at-Law
Restructuring and Insolvency,
Restructuring and Insolvency