Challenges in Proving Property Ownership for Compensation Claims in Wartime

Over the past two years, the following regulatory acts have been adopted:

Procedure for Determining Damage and Losses Caused to Ukraine Due to Armed Aggression by the Russian Federation (Cabinet of Ministers of Ukraine Resolution No. 326, dated March 20, 2022)

This procedure regulates the process of establishing and accounting for the losses incurred by the state, citizens, enterprises, and institutions in Ukraine due to hostilities starting from 2014. It includes methods for assessing material and non-material losses, as well as the documentation and verification process for the losses.

Procedure for Submitting Information on Damaged and Destroyed Real Estate Due to Hostilities, Terrorist Acts, and Sabotage (Cabinet of Ministers Resolution No. 380, dated March 26, 2022)

This procedure organizes the information about real estate of Ukrainian citizens that was damaged or destroyed due to hostilities and terrorist acts. It regulates the procedure for submitting informational notices about such damage.

Procedure for Providing Compensation for the Restoration of Specific Categories of Real Estate (Cabinet of Ministers Resolution No. 381, dated April 21, 2023)

This procedure establishes the process for receiving compensation through the electronic public service "eVідновлення" (eRestoration). It defines the criteria for providing compensation, conditions for submitting applications, damage assessments, document review, and decision-making regarding compensation payments. It also outlines control and reporting mechanisms to ensure transparency in the property restoration process.

Law of Ukraine "On Compensation for Damage and Destruction of Certain Categories of Real Estate Due to Hostilities, Terrorist Acts, and Sabotage Caused by Armed Aggression of the Russian Federation" (Law No. 2923-IX, adopted by the Verkhovna Rada of Ukraine on May 22, 2023)

This law defines the legal and organizational aspects of providing compensation for real estate damage resulting from warfare and terrorist acts. It establishes and maintains the State Register of Property Damaged by Military Events.

Key Provisions of Law No. 2923-IX:

• Owners of residential property destroyed or ruined due to hostilities have the right to compensation.
• Property owners must submit an application to the relevant executive authority (village, settlement, or city council, or military-civilian administration).
• The executive body forms a commission to consider matters concerning compensation.
• The commission examines issues related to compensation for real estate destroyed due to hostilities, terrorist acts, or sabotage.
• Owners can receive compensation in two forms: a housing certificate or a monetary payment.

• Requirement to Provide Title Documents
  According to Paragraph 1, Part 7, Article 4 of Law No. 2923-IX, an application for compensation for destroyed real estate must include a title document confirming ownership rights.

• Documents Confirming Ownership Rights
  Such documents include:
• A purchase agreement;
• A gift agreement;
• A certificate of inheritance;
• A certificate of ownership issued by local authorities.

• Registered Rights in the State Register
  If ownership rights are registered in the State Register of Property Rights to Real Estate, it is sufficient to submit an extract from the Register confirming ownership, even if other documents are lost.

• Challenges When Not Registered in the Register
  If ownership rights are not registered in the Register, it is necessary to restore lost documents. This process can be complicated due to:
• The destruction of documentation;
• Loss of access to registration databases caused by the occupation of Ukrainian territories.

• Complications Due to Occupation and Administrative Boundary Changes
  The occupation of territories complicates the determination of the competent authority for restoring ownership documents, as administrative boundaries and territorial status may have changed.

• Adapting Legislation to Wartime Conditions
  It is crucial to adapt legislation to wartime conditions to address legal challenges. One step in this direction was the roundtable discussion in Kyiv titled “Access to Compensation for Destroyed Housing,” supported by Council of Europe projects.

• Judicial Restoration of Ownership Rights
  If ownership rights are not registered in the Register and title documents were lost before 2013, judicial proceedings are required to restore ownership rights.

• Current Proposals
  Participants at the roundtable proposed measures to reduce the duration of proceedings for recognizing ownership rights in cases of lost documents, including:
• Resolving inconsistencies in the application of simplified claim proceedings;
• Providing methodological support to local courts from the Supreme Court;
• Amending the Civil Procedure Code to expand the list of cases eligible for simplified proceedings.