INVESTORS IN UKRAINE ARE PROTECTED BY A NEW LAW

August 15 was the day for Ukraine to adopt an important law that will significantly protect investors investing in Ukrainian real estate. This legislation was long overdue and reflected the demands of those people who want more security, certainty and assurance when investing their resources in real estate in our state.

So the law "On guaranteeing property rights to real estate objects that will be built in the future" was adopted, with which we can now congratulate everyone who was waiting for it.

What preceded the adoption of the regulatory act?

There are several factors at once that influenced the fact that the law was adopted. Including:

• The need to protect investors from possible cooperation with unscrupulous construction companies.
• Significant amounts of housing destruction and the need for the real estate sector to be sufficiently regulated, secure from chaos and ready to begin active reconstruction immediately after victory. The legal field should facilitate this.

That is why there was an urgent need to adopt a law that would allow us to deal with a number of long-standing problems.

What exactly does the new law provide?

So, among the constructive changes, it is worth noting that:

• The new legal act has made it impossible to sell apartments if the developer does not have a full range of permits, on the basis of which he will be able to complete the building.
• It is also impossible to sell apartments that do not belong to separate objects of property rights.
• The developer has an obligation to the investor not to hide information about how many apartments have already been purchased in the building.

Enshrining these important provisions in the legislation was an important step towards qualitatively normalizing Ukrainian legislation, adapting it to the objective needs of the time.

What else has changed?

As noted by the legislators, previously the scheme was quite common, according to which the non-residential premises of the building were sold as residential. This happened when one large apartment was divided into several small ones. The current order, which provides for stricter registration of all objects, makes such a situation impossible.

And there is also an opportunity for the investor to terminate the contract with the developer company, which is unprofitable for him. This can happen when the developer, for example, decided to change the technical parameters of the apartment without warning. But this is not the only situation. This is also possible if the date of putting the house into operation has been delayed by more than six months.

So, it is worth noting that such legislative changes are positive. Although they impose more obligations on construction companies, the orderliness of the legal field is not terrible for those developers who do not want to violate legal norms. At the same time, investors will have more certainty and peace of mind investing their money in truly reliable construction projects.