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Refusal under the “eRecovery” program: what to do?

In today’s realities, unfortunately, we have a very high risk of destruction of property due to the full-scale invasion of the Russian Federation on the territory of Ukraine.

The state does not stand aside in this regard, and thanks to this, the “eRecovery” service was launched, which makes it possible to receive compensation for the restoration of certain categories of real estate objects damaged as a result of hostilities.

But, as usual, not everything goes smoothly for everyone, as there are certain nuances in providing this type of compensation. Some Ukrainians are denied compensation under the “eRecovery” program.

“In the period from April 7 to May 8, 1,651 families applied for compensation for destroyed homes. And only 26% of them were refused. At the same time, for example, the percentage of rejections as of March 3 was 34%.”

This was announced by the head of the Verkhovna Rada Committee on State Power Organization, Local Self-Government, Regional Development and Urban Planning, head of the Servant of the People party, Olena Shulyak.

Nevertheless, the % of rejections is ¼ of all applications (a month ago, the % of rejections was a third of the number of applications). Every fourth family received a negative decision.

Thus, more than 400 Ukrainian families have already received a refusal.

What is the reason for receiving a denial of compensation under the “eRecovery” program?

One of the main reasons for the refusal of compensation under the “eRecovery” program is the lack of registration of housing in the State Register of Real Property Rights (hereinafter referred to as the State Register of Real Property Rights). Since the DRRP started its work only in 2013, a large number of property owners have not yet entered data on their real estate ownership.

In order to receive compensation, it is necessary to make sure that the damaged object is entered in the State Register of Property Rights to immovable property or, in the absence of such an entry, to register it (paragraph 13 of the Procedure for providing compensation for the restoration of certain categories of immovable property objects damaged as a result of hostilities, acts of terrorism, sabotage caused by the armed aggression of the Russian Federation, using the electronic public service “eRecovery”, approved by the Resolution of the Cabinet of Ministers of Ukraine dated April 21, 2023 No. 381).

Справа в тому, що під час проходження відповідної процедури для отримання компенсації, необхідно буде здійснити дії щодо державної реєстрації припинення права власності на знищений об`єкт нерухомого майна (відповідно до пункту 13 Порядку надання компенсації за знищені об`єкти нерухомого майна, затвердженим постановою Кабінету Міністрів України від 30 травня 2023 р. № 600). Тільки за умови наявності відомостей щодо державної реєстрації припинення права власності на знищений об`єкт нерухомого майна, що містяться в ДРРП, можливе проведення виплат компенсації.

That is, both in order to receive compensation for the restoration of real estate objects and in order to receive compensation for destroyed real estate objects, it is necessary to have information about the real estate object in the DRRP.

But the problem also arises with the possibility of entering data into the DRRP. Some of the people who left the war zone lost property title documents + the archives of some local BTI have not been preserved.

What to do if title documents for real estate cannot be restored?

If the property was acquired before 2013, and the information about it was not subsequently entered in the DRRP, the only option to confirm ownership of the property will be to go to court.

Court practice shows that such a category of cases has a positive outcome – courts satisfy claims for recognition of ownership rights (of course, if the documents are properly prepared for the court.)

Along with this, the court is also approached if there is a need to recognize the right of ownership, if there is an error in the data in the certificate of the right to inheritance. This category of cases also has a successful outcome in most cases.

And also, in the context of this topic, we would like to draw your attention to this question. In cases related to the refusal of compensation under the “eRecovery” service, disputes occur when a person appeals the decision to refuse compensation, having received only an information letter with a notification of the refusal.

What does the judicial practice say about this?

As an example, let’s take case No. 520/33823/23 dated March 5, 2024. The executive body of the local self-government did not send the text of this decision, the applicant was only informed about the result of consideration of his application. But the problem was that even after demanding it through the court, this document was not provided by the executive body as part of the case. Without familiarizing yourself with the decision on the refusal to grant compensation, the court will not be able to effectively protect your right to compensation, even if there are all grounds for it. Therefore, in this regard, first of all, it is necessary to obtain the refusal decision itself (how to obtain it is another question), and only then to appeal to the court, if there are grounds for appeal.

The main thing in matters of compensation for destroyed objects is not to worry and not to make hasty decisions. And the lawyers of our “V.I.Partners” law firm can help you get your legal documents in order. If necessary – contact. We are always in touch with you!