Real estate violations: how businesses can protect their assets

Legal violations in the real estate sector are increasingly posing risks not only to property owners but also to legitimate businesses. Shortcomings in registration procedures, abuses by certain entities, and criminal proceedings can lead to the loss or restriction of property rights.

This was discussed by participants at the roundtable «Legal violations in the real estate sector: what threatens businesses and how to respond», organized by the UNBA Committee on business and investor protection. The event was attended by representatives of law enforcement agencies, government bodies, the notary sector, and the advocacy profession.

Opening the discussion, the event’s moderator, deputy chairman of the UNBA Committee on business and investor protection Serhiy Lysenko emphasized that the topic has long since gone beyond purely legal issues. According to him, it directly affects business stability, the investment climate, and the level of trust in the state.

An investigator with the National Police Valeria Kopin highlighted the need for effective cooperation between the police, the prosecutor’s office, and the Ministry of Justice during pre-trial investigations. According to her, in such cases, an investigator cannot work in isolation, as the outcome depends on coordinated actions, information sharing, and the use of oversight tools. One such tool is desk audits, which help identify violations during registration procedures and build a body of evidence.

Chairman of the Kyiv branch of the Notary Chamber of Ukraine Natalia Kozaeva focused on issues of notarial secrecy and the limits of law enforcement interference in notaries’ work. She highlighted the problems of vague requests, disproportionate searches, and the seizure of documents that have no direct connection to criminal proceedings. She also discussed the need to adhere to the principle of proportionality and to distinguish between situations where a notary is a subject of the investigation and those where they are merely a source of information. The speaker also emphasized the importance of conducting preliminary checks on real estate properties before concluding agreements.

The practice of privatizing municipal property through the Prozorro.Sales system was discussed by deputy director of the Kyiv City Department of Municipal Property Vsevolod Komarnytskyi. He assured that the procedures are conducted in accordance with the law; however, the Department faces criminal proceedings regarding privatization properties. He identified «retrospective appraisals» — conducted after the completion of transactions — as a separate issue, noting that, in his view, they cannot objectively reflect the property’s value at the time of sale. Such approaches create legal uncertainty and pose risks for investors.

Deputy chairman of the UNBA Committee on agricultural, land and environmental law Dmytro Navrotskyi presented practical approaches to verifying real estate, particularly land plots, prior to purchase. He outlined three main stages of such a verification: analysis of public registries and case law, a technical inspection involving specialists, and obtaining information from government agencies regarding potential restrictions or encumbrances. According to the advocate, it is precisely this comprehensive approach that helps reduce the risks of property being reclaimed or seized in the future.

Advocate Yuriy Kryzskyi spoke about the shift in the focus of law enforcement agencies from repressive measures to preventive ones. According to him, a biased attitude toward advocates, notaries, and officials involved in privatization processes negatively affects the investment climate and Ukraine’s image.

At the conclusion of the event, S. Lysenko summarized that commercial real estate is a core business asset, but at the same time a source of serious risks. Even bona fide purchasers, he said, are not immune to property seizures, restrictions on use, loss of control over the asset, or pressure from law enforcement agencies. Therefore, the key recommendation for businesses remains thorough due diligence on real estate properties — not only prior to acquisition but also regarding property the business already owns.