When can a sale and purchase agreement be declared invalid?

An unprofessional approach to buying property can lead to making the wrong choice and, as a result, to the loss of money and your new home. There are cases where transactions are declared invalid due to various breaches of the law. To prevent this from happening, you must take every opportunity to verify the legal validity of the documents relating to your chosen property.

Key points regarding the invalidation of a transaction

Under Ukrainian law, there are two types of invalid sale and purchase transactions, resulting in the return of money and property to their owners. These include:

• Void transactions. These are invalid without any expression of intent, solely by virtue of the law, and are deemed so immediately upon conclusion. Once a problem is discovered, the parties may part ways by mutual consent. If one of the parties objects, the matter is referred to court.
• Contested transactions. Only a court can declare such transactions invalid. In disputable transactions, everything is in order from a legal point of view, but the rights of interested parties (close relatives) are infringed.

Additionally, a sale and purchase transaction may be declared invalid in the following situations:

• in the event of unauthorised alterations;
• if previous transactions involving the property have been declared invalid;
• if third parties hold rights to the property, for example, if the property is under an official tenancy agreement, has been seized, is pledged as security, is subject to an easement agreement, etc.;
• if there are outstanding utility bills;
• the legal entity conducting the transaction is not authorised to carry out such activities.

If you are planning to enter into a sale and purchase transaction in the near future, use the services of Svarog. Our specialists will verify the authenticity of the documents and the validity of the transaction, so you won’t have to worry about its legality!