Settlements purchasing selling real estate in Ukraine

By purchase and sale of real estate in Ukraine, cash and non-cash settlement is allowed. While the purchase and sale of real estate, the notary is not obliged to certify the fact of the transfer of money. After the settlement, the seller and the buyer confirm the fact of transferring the money to the notary. 

What you need to know about settlements purchasing selling real estate in Ukraine? According to the legislation, all real estate sales and purchases in Ukraine are settled in the national currency. 

Cash settlement when buying and selling real estate in Ukraine.

According to the resolution of the National Bank of Ukraine, during a cash settlement, the amount cannot exceed UAH 150,000.00 hryvnias. If the amount is larger, non-cash settlement is used.

 There are three ways to transfer money in cash when buying and selling real estate: 

• Preliminary settlement. The buyer transfers the money to the seller, after which a real estate sale contract is concluded and notarized. During the transaction, the seller still has the right to the property, while the buyer has already given him the money. 

• Settlement based on the fact of the owner's replacement. The agreement is drawn up properly, after which the money is transferred to the seller. In this case, the buyer already has ownership, but has not yet transferred the money.

• Mixed settlement. The transfer of money takes place after the signing of the agreement, but before the notarization of the ownership replacement of the property. The buyer can also use a hand receipt.

When paying in cash, at the time of money transfer, banknotes are checked for authenticity using a detector in a notary's office or a paid service in a bank.

  Cashless settlement when buying and selling real estate.

If the value of the property exceeds 150,000 hryvnia, the purchase takes place by bank transfer. Money is transferred from the buyer's account to the seller's account only in national currency. Accounts can be opened in different banks, but if the accounts of the parties are opened in one bank, it is possible to save on the commission.

In case of non-cash settlement, the parties - the Buyer, the Seller and the Bank conclude an agreement under which money is transferred from the account to the account only after certain conditions are met and if certain documents are available.

The seller can provide a notarized copy of the contract of sale to receive money to his account. The transfer of money takes place under the control of the bank, which guarantees protection against fraud.

The notary certifies the purchase and sale of real estate only if there are bank documents confirming the settlement in the national currency in non-cash form:

• the buyer deposits cash through the cashier, after which the bank transfers the money to the seller's account;
• money from the buyer's account is transferred to the seller's account.

Alternatively, you can use the deposit at the notary. The buyer in any way transfers to the account of the notary the amount specified in the contract, then after the alienation of property rights, the notary transfers money to the seller's account.

It should be taken into account that additional costs may be incurred during non-cash settlement, for example, for opening an account, for the bank's participation in the transaction, for transferring money from one bank to another, for transferring money into cash and buying currency. In advance, even before the conclusion of the agreement, it is worth deciding who will bear these costs.

Address:

3, Mykoly Solovtsova st.

Office 15

Kyiv, Ukraine 

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