The draft law on guaranteeing the rights to real estate under construction was adopted in the first reading
The Verkhovna Rada adopted draft law #5091 on guaranteeing property rights to real estate to be constructed in the future in the first reading.
The adoption of the draft law creates effective legal mechanisms for the state to guarantee property rights to unfinished construction projects and future real estate – from now on real estate buyers are much better protected and receive guarantees of protection of their rights in case of, for example, suspended construction.
What is changed?
- As a result of concluding a purchase/sale contract, a buyer receives the status of a guaranteed buyer instead of the investor status with risks and, accordingly, is protected by laws on consumer protection (for individuals) and property rights
- Special property rights will be registered for the future real estate object. This makes it impossible to resell it
- A construction project owner/developer can start the sale of future real estate only after the registration of special property rights, separately for all apartments or other objects. This also makes it impossible to purchase residential or non-residential premises in illegally constructed buildings
- Introducing a guaranteed construction segment — a part of the object that a developer cannot sell before the completion of construction. This is an effective source to cover costs in case of completion of unfinished construction by another construction project owner
- A construction project owner/developer is obliged to agree on adjustments in the design documentation with buyers if such adjustments affect their interests
- The law establishes mandatory requirements for the publication of information about a construction project owner and a future apartment building
BRDO experts actively participated in drafting the law. We are grateful for the support given by people’s deputies and look forward to the adoption of the draft law as a whole!