This article analyzes Bill No. 13663 of August 20, 2025, which proposes to simplify the procedure for amending land lease agreements.

Draft Law No. 13663 of August 20, 2025, has been registered with the Verkhovna Rada and could significantly change the rules of the game in the land lease market. 

The essence of the bill is simple: state registration will be mandatory only when the term of the lease agreement is changed, while all other changes—such as the rent amount, payment terms, or conditions of land use—can be formalized without additional registration if the leasehold right is already recorded in the registry.

✅ Benefits of the bill

1. Legal certainty and resolution of judicial conflicts

This is the key objective and the most significant advantage of the bill. Currently, there is a direct contradiction in the rulings of higher courts, specifically:

"The Supreme Court, sitting as the Chamber for Cases Concerning Land Relations and Property Rights of the Commercial Court of Cassation, in its ruling dated March 16, 2020, in case No. 922/1658/19, concluded that only the creation of a real right—the right to lease a land plot and its term—is subject to state registration, and not the terms of the land lease agreement, such as the amount of rent.

At the same time, the Cassation Administrative Court within the Supreme Court, in its ruling dated March 28, 2024, in case No. 160/240/23, concluded that the supplementary agreement to the lease agreement was subject to state registration. Since the court proceedings established that the supplementary agreement to the land lease agreement had not been state-registered, the parties to this supplementary agreement did not acquire the rights and obligations stipulated therein. "

The draft law clearly stipulates that only changes to the term of the agreement are subject to state registration. This establishes a uniform and clear rule for all market participants, eliminating legal uncertainty.

2. Reducing the Bureaucratic Burden and Saving Resources

The procedure for making amendments is simplified for the parties to the agreement. It will no longer be necessary to apply to the state registrar, prepare a package of documents, or pay an administrative fee for each amendment that does not relate to the term of the agreement. Any amendments can be made by signing a simple written agreement. This reduces the bureaucratic burden and saves time and money. 

3. Faster Entry of Changes into Effect

Under the Civil Code of Ukraine, amendments to a contract take effect upon reaching an agreement, unless otherwise specified in the contract. Eliminating the mandatory registration requirement for most amendments will allow this principle to be applied directly. New terms (such as a revised rent) will take effect immediately upon signing the amendment, rather than after a lengthy state registration process.

❌ Drawbacks and Potential Risks of the Bill

1. Reduced transparency and risks for third parties

The State Register of Real Property Rights is the primary source of reliable information about a property. If changes to rent, restrictions, or other important terms are not registered, this could create problems for:

Banks and creditors: When a leasehold interest is pledged as collateral, the bank will be unable to verify the current rent amount in the registry, which affects the assessment of the asset’s liquidity.

Land buyers: When purchasing land, the new owner will see only the basic terms of the contract in the registry, while the actual financial obligations may differ.

2. Complications in Tax Administration

The case that prompted the drafting of this bill specifically concerned the calculation of tax liabilities based on rent payments. Tax authorities often rely on data from state registries to verify the accuracy of tax payments. If the information on the amount of rent in the registry is outdated, this could complicate oversight.

3. Reduced transparency

State registration ensures the public nature and accessibility of information regarding the terms of the agreement. Eliminating mandatory registration for most changes reduces the transparency of lease relationships, which could be critical, especially in the case of leases of state- and municipally-owned land.

Considering all of the above, in my opinion, the proposed bill is a logical step toward deregulation and simplification of lease relationships. It will reduce the number of bureaucratic procedures and establish uniform rules for registering changes.