The purpose of article is to justify needs for legislative regulation for formation of institutional environment for land property commerce and strengthening a role of the state in guaranteeing rights in this process. Research methods. In the research process the following scientific methods have been used: monographic method for analyzing the views of scientists on the studied problem; method of empirical research for evaluation of current state and development of the research object; dialectical method of cognition for analysis of scientific works of Ukrainian and foreign scientists; abstract and logical method for analyzing the research results. Research results. Necessity of the legislative regulation o land property commerce has been substantiated and an institutional mechanism for its improvement has been proposed. Importance of legalization and structuring of contractual relations for ensuring effective use of land plots (shares) has been determined. In order to efficiently organize land use in the agricultural production, owners of land plots (shares) and agricultural enterprises are understood as a network of contracts (agreements) in a range of land ownership relations between individuals. Elements of scientific novelty. Theoretical and methodological substantiation for formation and regulation of the institutional environment for land property commerce have gained further development. Practical significance. It is substantiated that formation of land property commerce should be carried out on legislative basis, combining interests of owners of land plots (shares), rural territories and its inhabitants, and thus to affect its formation, prices for land parcels and all what will be connected with it. Effective structure of contractual relations management and availability of reliable information on distribution of land ownership rights will ensure regulation and impact on development of market activity of land owners. Figs.: 1. Refs.: 25