Guide to Real Estate sale process in Ukraine.
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Whether you already own a property or considering purchasing one, it is essential to be familiar with the real estate property sale process of Ukraine.
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After all, many purchases are made with the intention of holding it for a period of time for appreciation and then selling them for profit, so it is critical information that every potential buyer needs. Solid professional advice and the right marketing strategy are the cornerstones to an effective and fast sale. At Ukraine Realty Group we will be happy to assist and guide you through all the nuances of the sale process along with legal or any other professional advice needed.
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Below are basic questions and answers that frequently have been asked by our past clients. Of course, not all answers can be contained on a web page, so if you are interested in selling your property and finding out more information or require a consultation service please do not hesitate to contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it or This e-mail address is being protected from spambots. You need JavaScript enabled to view it via email or by phone. Alternatively you can give us a call at UKR tel.: +38 (093) 520-0730 (MSK 9am-10pm) if you are in Ukraine or if you are in UK at UK tel.: +44 (20) 7100-5708 (GMT 9am-7pm) or if you are in United States (US tel.: +1 (800) 601-3327 (EST 9am-9pm) ) and we will be happy to assist you.
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What is the basic process framework for property sale in Ukraine? Read
What should I do to assure I receive the highest price? Read
I am planning to sell my property, will I need a realtor? Read
Who pays the brokerage fee in Ukraine? Read
I already have an interested party in my property, can I simply use Ukraine Realty Group to help me close the transaction? Read
What is the typical deposit amount? Read
What are the procedures of the closure? Read
What will be my expenses when selling my property? Read
How will I receive my payment? Read
How long does a transaction typically take from start to finish? Read
Can I use multiple brokers when listing the property for sale? Read
Are there taxes involved on sale proceeds? Read
I live outside of Ukraine and will need to transfer my proceeds to my country. How is this done? Read
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What is the basic process framework for property sale in Ukraine?
Similarly to real estate transactions around the world, the designated property for sale is listed with a realtor or marketed by the owner until a buyer is found and price is agreed upon. The buyer and seller then sign a preliminary agreement and relay deposit payment. A date is then set for final closure, payment of the balance and official property transfer.
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What should I do to assure I receive the highest price?
The property should be listed with a competent realtor that will market your property aggressively to assure the highest price is received. Also, a knowledgeable agent which is familiar with recent transactions should have some input for a realistic sale price. We at Ukraine Realty Group deal with Kiev & Odessa real estate market daily and will be happy to provide you with our thought as to what the price should be on your property. Of course the final listing price id entirely up to the seller.  Seller should also make sure that the property’s paperwork is in order, and the property is free and clear of any third party rights such as ex spouses or other previous residents or owners.
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I am planning to sell my property, will I need a realtor?
Technically a realtor is not required to sell a property. The property can be marketed by the owner until a buyer is found. However, typically a seller only has access to standard marketing outlets such as newspapers and other common publications. Realtors on the other hand have many propriety databases and also access to multiple listing services which allow for maximum exposure of the property to as many potential buyers as possible. Realtor also screens the phone calls for potential serious buyers and does not waste your time by showing properties to simply curious individuals. If a property is listed by an owner directly, one should be prepared to show the property to many parties who have no real desire to actually buy, but simply are curious.
Further, a good realtor will not only find you a prospective buyer, but will also structure the deal and protect your interests through the entire sale process. At Ukraine Realty Group we liaison with a number of skilled lawyers and notaries which are accessible at any moment for advice for any type of situation. Thus, having a competent professional realtor working on your side is highly advisable when selling your property.
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Who pays the brokerage fee in Ukraine?
As a standard the broker fee is paid by the buyer of the property, however, this can be negotiable. In many instances, the party that receives the realtor service is the party that pays the brokerage fee. The fees are negotiable and vary from 2% up to 6%.
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I already have an interested party in my property, can I simply use Ukraine Realty Group to help me close the transaction?
We at Ukraine Realty Group offer variety of services including real estate consultation and other related services for any type of situation. Please give us a call or email us to find out our quote as every situation is different. As a standard, simply using URG for the legal structuring of the transaction is typically 50% of the standard brokerage fee.
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What is the typical deposit amount?
After agreeing to purchase the property, the buyer and seller sign a preliminary agreement and a deposit is conveyed. The agreement contains a time frame during which the transaction will take place. It also contains the amount at which the property sale has been agreed. The deposit as a standard is 5% of the purchase price but can be negotiated up or down.
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What are the procedures of the closure?
Once the seller has verified that the funds are legit and exist at the designated bank, an agreement is signed at a state authorized notary office at which point it is submitted for state registration, upon which the actual transfer of the ownership rights takes place. It is also logged into a state registrar computer system and a hard copy ownership document is created.
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What will be my expenses when selling my property?
As a standard all the expenses associated with property sale are absorbed by the buyer. There are no additional sale taxes or fees on the sale proceeds. However, if some other arrangement was negotiated during preliminary agreement then the seller will be responsible for those expenses which were negotiated.
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How will I receive my payment?
Unfortunately with Ukraine being largely a cash economy, most of the real estate transactions are made in cash. However, the actual transaction process always takes place inside a bank, in a designated room or a state notary office. The bank provides either an escrow service or a transaction can take place inside a state notary’s office which verifies that the funds are legit and have been paid to the seller by the buyer. The seller receives the amount of the sale as a standard in cash and can deposit it right away into a bank of their choice. The seller also must verify that the bills are legit using equipment provided by the bank or the notary’s office.
Wire transfers are becoming more common, however, lack of established institutions providing secure escrow services makes wire transfers less common and in some cases riskier than cash transactions. Be assured that if you have Ukraine Realty Property on your side, we will do our best to assure that your sale process goes as smoothly as possible without any glitches.
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How long does a transaction typically take from start to finish?
The preliminary agreement outlines the time frame between which the agreement is signed and the time that remainder of the payment is made, along with the rest of the procedures. There is no set rule, but typically the time frame is one month. It is not recommended to set a time frame for more than three months as the real estate market can go through changes making the buyer rethink the purchase due to lower prices or the opposite if the prices have gone up - the seller may rethink selling at the agreed price creating various complications. Â Sometimes a preliminary agreement outlines that the closure date can not exceed certain date and if it does, there is a penalty incurred. The long time frames are typically needed when a seller needs to find another property to which they will move.
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Can I use multiple brokers when listing the property for sale?
Using multiple brokers to list one property is a common approach taken by many sellers in Ukraine thinking that it will give them the best price and the highest number of interested buyers. Ironically, it often does the opposite as when a property is placed with a broker on a non-exclusive basis, the realtor usually has less incentive to spend resources on advertising and marketing the property. Further, various brokers with whom the property has been placed are often competing for the same buyers, usually advertising the property for a lower price than a competing broker as naturally clients will call them before the broker with higher price. This often results in a lower price for the seller of the property. The optimal way to sell a property is to have a diligent exclusive broker that will aggressively market the property to potential buyers and give the seller professional advice from start to finish during the transaction.
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Are there taxes involved on sale proceeds?
Current laws of Ukraine dictate the only the buyer pays taxes on the property purchase. The seller of the property pays no taxes of any sort, unless they have mad more than 3 property sales in one year in which case they must pay 15% tax on the income (difference between purchase and sell price) on each of their investments. The idea is to tax only entities which make purchasing and reselling properties as their primary business. To see the details on taxes paid by the buyer, please see our Ukraine property purchase guide.
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I live outside of Ukraine and will need to transfer my proceeds to my country. How is this done? Read
An account at any local Ukrainian bank is opened and a wire transfer is made to yourself into your home country. You will need to show proof of documentation that the amount you are sending to yourself is in fact consistent with the proceeds from your sale. There are numerous reputable banks in Kiev and Odessa, many which are affiliates of Western European banks operating in Ukraine. The wire transfer fees range from 0.5%-1.5% of the amount. We can advise as to which banks are best for this purpose.
