Grounds for termination of ownership rights: explained in simple terms

Property rights are the legally established rights of individuals or organizations to own, use, and dispose of their property. However, there are situations when these rights are terminated. Such cases are defined in Article 346 of the Civil Code of Ukraine.

Voluntary grounds

Most often, ownership rights are terminated at the owner’s request. This may be:

• Alienation of property — when the owner sells, donates, or exchanges their property, and the rights are transferred to another person.
• Renunciation of ownership rights — for example, a person has decided to give up a land plot or apartment. Such a renunciation must be formalized through an application and registration.

When property cannot belong to a person

Sometimes a person owns something that the law does not allow them to own. For example, this may be agricultural land that cannot be owned by legal entities whose participants or beneficiaries are foreigners if such land is located closer than 50 kilometers from the state border of Ukraine (except for the sea border), in accordance with Article 130 of the Land Code of Ukraine.

Termination of rights due to destruction of property

Another common reason is destruction of property. If a house has burned down, been demolished, or no longer physically exists, ownership rights to it are terminated.

For movable property (such as a car or equipment), ownership rights are usually terminated automatically after physical destruction, unless it is subject to mandatory state registration. For real estate, however, it is mandatory to apply to the state registrar.

But if it is real estate (a house, apartment, garage), the fact of destruction alone is not enough. The owner must apply to the state registrar to make changes to the State Register of Property Rights.

To do this, you need to submit documents confirming the destruction — a technical inventory report, a fire certificate, or a conclusion from the relevant authorities. Without these actions, the right of ownership continues to exist legally, even if the property is actually missing.

Court practice confirms that without the owner contacting the registrar and without evidence of the destruction of the property, it is impossible to terminate the right of ownership.

Compulsory termination

The state may terminate ownership rights on grounds of public necessity or violation of the law. Such cases include:

• expropriation of property for public needs (e.g., for the construction of a road or school)
• Requisition — seizure of property for state needs with compensation to the owner, which may be temporary (e.g., during martial law) or permanent, depending on the circumstances (Article 353 of the Civil Code of Ukraine).
• Confiscation — when property is seized by court order as punishment
• enforcement of a debt against the debtor’s property.

In the event of compulsory termination of ownership (e.g., redemption for public needs or requisition), the owner is usually entitled to compensation, except in cases of confiscation as punishment for breaking the law (Articles 350–353 of the Civil Code of Ukraine).

Other grounds

Ownership rights also terminate upon the death of a natural person or the liquidation of a legal entity. In the first case, the property is inherited, and in the second, it passes to the successors or the state.

In addition, the law may establish other cases of termination, such as the redemption of cultural heritage sites. Ownership rights may also terminate due to the expiration of the statute of limitations if another person legally owns the property (acquisitive prescription, Article 344 of the Civil Code of Ukraine), or due to the loss of rights to property that has become part of another object (for example, building materials used for someone else’s house).

Ownership rights may be terminated either at the initiative of the owner or by decision of the state or a court. In any case, this must be officially confirmed through contracts, decisions, or applications to the registry.

Understanding these rules will help avoid misunderstandings and legal risks. If a situation arises involving the destruction, seizure, or sale of property, it is advisable to consult a lawyer to properly formalize the termination of ownership rights.

If you have any questions, please contact the lawyers at Strategic Advocacy for advice.