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Pavlo Petrenko The Minister of Justice of Ukraine
Pavlo Petrenko
The Minister of Justice of Ukraine

THE MINISTRY OF JUSTICE OF UKRAINE HAS PRESENTED DRAFT LAWS, WHICH WILL ALLOW TRANSFER OF REGISTRATION FUNCTIONS TO REGIONAL LEVEL

19.05.2015

The Ministry of Justice of Ukraine has developed, and is ready to submit for consideration to Verkhovna Rada of Ukraine draft laws, which will improve provision of administrative services in the state registration sector, and they will ensure transfer of registration functions to local authorities, banks, notaries and state enforcement officers. Such a statement has been made during a round table meeting at the Ministry of Justice of Ukraine by the First Deputy Minister of Justice of Ukraine Natalya Sevostyanova.

“We are introducing 2 draft laws, which are aimed at improving and simplifying the provision of administration services in the state registration of rights to immovable property and their encumbrances, as well as in registration of legal entities and natural person – entrepreneur sectors. Apart from local authorities and state administrations, the right to perform registration actions will given to notaries, banks, accredited by the Ministry of Justice and state enforcement officers when it comes to imposing or terminating encumbrances of rights to immovable property”, - noted the First Deputy Minister of Justice.

According to her, citizens were dissatisfied with quality and speed of registration services, since they constantly faced queues in registration services, corruption, the need to give bribes in order to speed up the procedure and a numerous number of unjustified refusals.

“Within the framework of the Government’s program, we have decided that administrative services must be decentralized. We are ready to renounce our authority that has been a monopoly of the Ministry of Justice of Ukraine. After passing these laws, citizens will have the right to chose, who would provide them these services. In this way, any possibility of corruption risks is eliminated – if a person sees that a certain organization demands a bribe from him, he is able then to go to any other professional”, - emphasized Natalya Sevostyanova.

She has also stated that amongst the subjects, authorized with the right to perform registration actions, there are more than 7 thousand only notaries. That is why the implementation of this reform will allow us to get rid of queues and over-workloaded registrars.

Deputy Minister of Justice of Ukraine Gia Getsadze has pointed out that Ukraine has no resources in order to develop a new system for providing services from zero, as well as Ukraine has no time for experts to come to a conclusion on how the new structure should look like.

“In order to receive quick results, we transfer these functions to institutes, which are ready for them. For example, notaries already have experience in fulfilling these functions, they have their own offices, that is why the state won’t spend significant means for the implementation of this reform”, - stated the Deputy Minister.

At this being said, he pointed out that the suggested system will help saving money on combating corruption.

“We won’t fight against corruption. After we implement this suggested model, corruption will become meaningless, and it will wither away on its own”, - emphasized Gia Getsadze.

In his turn the Director of the State registration department Sergiy Benedysyuk said: the main idea of these bills – withdrawal from the exclusiveness of fulfilling registration functions.

“We will ensure internal competition within each individually taken group, as well as competition between different registration subject groups – notaries, local authorities and banks”, - he stated.

He also stated that these bills provide extension of extraterritoriality principle during the reception of documents.

“It will be possible to register property not only within the area, but within the region. As for the business – it will be possible to register it anywhere in the country. This expands the competition area, which will stimulate registration subjects to provide better and faster services”, - pointed out Sergiy Benedysyuk.

Additionally, this reform provides the widest possible introduction of electronic document flow system and provision of electronic services, and documents are going to be filled in not by the client, but by the registrar.

Apart from that, a provision is being introduced which, in case of any encumbrances or absence of any of required documents, allows not to refuse the registration of property, but to suspend it up to 30 days in order for the client to find a way to handle this situation and to collect documents that are missing.

Amongst innovations, there is the introduction of the principle, according to which information from other government authorities must be automatically be transferred to registrars. At the same time it is planned to perform unification of state registers and registration procedures of different subjects, to cancel the necessity of annual verification and annual financial reports, as well as to enable citizens to receive information about property according to both the subject and the object.

An important element of this reform is the implementation of a mechanism of administrative appeal against registration decisions, performed by justice authorities.

“A two-level mechanism of appealing against a refusal to perform registration actions, as well as a mechanism of appealing against affirmative decisions regarding the state registration will be introduced”, - stated Sergiy Benedysyuk.

Apart from that, these bills normalize financial matters. If registration actions have been performed by local authorities’ or by state administrations’ specialist, 100% of the money paid for the service is transferred directly to local budgets. On the other hand, if similar services are going to be provided by private sector specialists, they are going to keep 60% and 40% are going to be transferred to the state budget.

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