On August 15, the Verkhovna Rada adopted in the second reading and in general law No. 5091 - on guaranteeing real rights to real estate objects that will be built in the future. 257 people's deputies voted "

The purpose of the law is to guarantee by the state the material rights of investors to real estate objects that are in the process of construction.

The law, in particular:.

establishes the conditions under which objects of construction in progress, future real estate objects may be objects of civil rights;

determines the features of investment and financing of facilities under construction using non-state funds;

defines the features of the contract for the organization and financing of the construction of the facility;

defines the basic requirements for the disclosure by the construction customer (construction developer, construction finance fund manager) of information about the divisible object of construction in progress (apartment building);

introduces a mechanism for state registration of property rights to objects of construction in progress and future real estate objects;

creates an opportunity to obtain the right to perform construction work and carry out state registration of ownership of the construction object and its components (apartments, garage boxes, other residential and non-residential premises, parking spaces, etc.). real estate objects) on the principle of "

Simply put, the Verkhovna Rada eliminated gaps in legislation in the field of attracting funds from individuals and legal entities in real estate construction.

The law is designed to protect the rights of investors in construction from unscrupulous developers. Therefore, to put an end to the practice of unfinished housing, the number of which is growing every year.

The adoption of the law was very positively received by the banking system..

“Banks promise to launch mortgages together with the NBU after its implementation,” commented Yaroslav Zheleznyak, First Deputy Chairman of the Verkhovna Rada Committee on Tax Policy.

Recall that investing in construction in Ukraine was an absolutely risky business.. Cases when investors could neither get ownership of real estate objects nor return the funds invested in the construction of such objects occurred throughout the country.

Among the factors that contributed to this in the past (and which were eliminated by law No. 5091), the following can be distinguished:.

When concluding contracts with the developer, most investors had limited information about the construction object, whether the construction customer has the right to perform construction work, project documentation for construction, the actual state of construction of the facility, etc..

The construction customer could mislead potential investors regarding information important to them. In the absence of this information, the investor could not qualitatively and fully assess the risks associated with investing in a particular construction project.

Also, the investor was deprived of a real opportunity to control the activities of the construction customer.

Due to the lack of a transparent mechanism for state registration of rights to real estate under construction, the investor was not able to reliably, without the help of the developer, determine the amount of funds attracted by him for the construction of the facility and the scope of the rights of third parties regarding the facility or residential / non-residential premises in it.

However, the risks didn't end there.. In addition, there was a practice when:.

the developer could change the technical characteristics of the object without the consent of the investor;

double resale of the object by unscrupulous construction customers was common;

there was an appeal of the right of ownership to future real estate, which is acquired, in particular, through a method of financing not provided for by part three of article 4 of the Law of Ukraine "

Also among the reasons for the emergence of problematic housing construction projects were:.

lack of a system to guarantee the fulfillment by the customer of the construction of obligations to investors;

construction of objects on illegally occupied land plots or in the absence of the right to perform construction work,.

construction financing on the principle of "

the direction of funds raised from investors in housing construction, not for the intended purpose,.

undertaking by the builder of obligations that he definitely could not fulfill.