How to Receive Payment Safely When Selling Agricultural Land in Ukraine

01

Distinguish preliminary arrangements from the sale payment

Before a notarised sale, the parties may make separate arrangements about document preparation, representation and funds transferred at that stage. They should record the legal basis, amount, recipient, evidence and what happens if the sale does not proceed. A power of attorney for representation does not itself transfer ownership of the plot or replace a sale agreement. Obtain case-specific legal advice before transferring funds.

When the parties conclude a sale of an agricultural land plot, Article 130 of the Land Code of Ukraine requires non-cash settlement of its price. The agreement and payment documents should reflect the actual price and payment terms. If funds were transferred earlier, have a lawyer, bank and notary review their purpose and effect on the final settlement; the label given to a payment does not, by itself, settle its legal character.

The seller needs an account capable of receiving the full amount, clear payment details and reliable evidence that the transfer was credited. The prospective buyer must also pass the checks applicable to agricultural land acquisition, including eligibility and lawful sources of funds under Article 130 and Cabinet Resolution No. 637. Start those checks before the appointment with the notary.

02

Prepare the receiving account

Ask your bank to confirm the IBAN, account currency, ability to receive the agreed amount, expected processing steps and how it can issue a statement or other evidence of credit. Any operational limits depend on the bank and payment channel; do not assume that all banks use the same process. Ask which documents the bank may require for the transaction.

Send account details through a controlled channel and check them again against the draft agreement. If the account, payer or payment purpose changes at the last moment, verify the change directly with the people and institutions involved. A forwarded message is not enough.

03

Make the payment clause precise

The draft agreement should clearly state the full price, settlement currency, payer, receiving account, transfer method, payment purpose, timing and the evidence the parties will use to confirm payment. It should also say what happens if a bank delays or returns the transfer, the amount arrives in parts, or account details must be corrected. A Ukrainian lawyer should check the clause defining when the payment obligation is fulfilled. It must match the actual banking procedure rather than treating the buyer’s click in an app as proof of receipt.

Read the draft before the notary appointment. Land documents, tax treatment and any tenant’s pre-emption rights require their own review. The LANDMARKET Ukrainian document guide and leased land guide cover those separate issues.

04

Agree the sequence with the bank and notary

There is no single payment sequence that is safe for every transaction. The bank and notary should explain what can be completed on the same day, when evidence of credit becomes available, which records will be checked and what the parties should do if payment is delayed. Different contractual structures may be possible; each must be assessed for the specific deal so the seller is not left without the price and the buyer is not exposed to an unagreed transfer risk.

The notary acts within the notarial and registration process. Notarisation and state registration do not automatically demonstrate that the seller’s bank has credited the funds. Ask the notary which payment fact will be stated in the contract, which document supports it and who will verify that document.

05

A payment order is not the same as a credited payment

A buyer may present a payment instruction, receipt or banking-app screen. It can show that a transfer was initiated or reached a particular stage, but it does not always establish that the seller received the money. Check your own account through your bank and obtain the available bank statement, confirmation or other record of the credit. Match the payer, recipient, amount, date and payment purpose against the agreement.

If the amount or details do not match, do not sign a declaration of full payment without an explanation and legal review. If your bank cannot yet confirm the credit, follow the delay procedure agreed in the contract with the bank, notary and lawyer. A message from the buyer or an unverified screenshot is insufficient evidence.

06

Settlement table

07

Allow for taxes and closing costs

The amount you ultimately retain depends on the contractual price, the tax treatment applicable to your circumstances and the allocation of transaction costs. Ask for a written calculation of the amount after taxes and costs. Tax rates and reliefs depend on the seller and parcel; have the notary or tax adviser check them. See the LANDMARKET Ukrainian tax guide. This article does not assign a personal tax rate.

08

Points to clarify before signing

• Earlier transfers of funds or additional arrangements have no clear written basis or have not been reconciled with the proposed sale terms.
• Pressure to acknowledge full payment before your bank confirms the credit.
• A screenshot or buyer message offered as the only evidence of receipt.
• Last-minute changes to the recipient account, payer, amount or payment purpose.
• Pressure to sign before the bank and notary explain how a delayed transfer will be handled.
• Split payments that are absent from the contract.

09

Seller’s checklist

1. Check your bank details, ability to receive the full amount and method for obtaining a statement.
2. Ask the notary how the buyer’s acquisition eligibility and source-of-funds checks will be completed.
3. Read the draft agreement for price, payer, account, payment purpose, timing, proof and delay procedure.
4. Obtain a written calculation of taxes and transaction costs.
5. Agree the exact transfer, notarisation and registration sequence with the bank and notary.
6. Know how you will verify actual credit, separately from a submitted payment order.
7. Keep direct contact details for the bank and notary and verify any changed instructions.
8. Save the final agreement, bank evidence of credit and relevant tax and ownership records.