The developer is not building an apartment – what to do?

Failure by a developer to fulfill their obligations, including freezing the construction of a new apartment, entails legal liability. It is not uncommon to encounter a problematic developer who, after signing a contract, does not perform work on time, ignores communication and refuses to refund money for the inadequate quality of their services. In the article, we will talk about how to act in such a case and how to hold the relevant persons accountable.

When is a delay in construction by a developer (illegal)?

Buying an apartment in a new building is sometimes accompanied by unpleasant surprises in the form of significant delays in construction and subsequent commissioning. To effectively protect your rights, it is important to know when a delay on the part of the developer is considered legal and when it is not. To do this, you need to set up communication and be able to check the person in the registers (if necessary).

As a general rule, a delay in the construction of an apartment is considered legal if it is due to force majeure circumstances - events that the developer could not foresee. These include natural disasters, decisions of state bodies that directly affect the timing of construction work, epidemics, etc. In other cases, the developer will face financial sanctions. Examples of actions for illegal delay in the construction of an apartment can be:

• lack of permits;
• non-compliance of construction with the original project and DBN;
• non-fulfillment of technical conditions for connecting the house to engineering networks, and others.

What to do if you find that the developer is not building an apartment?

Legal analysis of the primary contract

The first step in the event of the developer's failure to properly fulfill his obligations will be a preliminary thorough analysis of the contract. It is worth paying attention to the points on the construction period, force majeure circumstances, the developer's liability and the conditions for terminating the contract. As a rule, the last two should contain provisions on a material violation of the terms of the contract, which entail negative consequences for the counterparty, respectively. Finally, the agreement should also describe a clear procedure for early termination of the agreements. It is recommended to do this step even before the start of cooperation.

Submitting a claim

This is followed by an official appeal to the developer in an official form. Among the types of such appeals, it is worth highlighting:

• first, an official request (to inform about the reasons for the delay, provide supporting documents, certificates of work performed, etc.)
• secondly, a claim (filed for pre-trial settlement of the dispute and the developer's obligation to pay a fine, penalty, the amount actually paid under the contract and compensation). An additional agreement on early termination of the contract is often sent to the claim.

Lawyer's request to regulatory authorities

If you suspect that the developer is acting illegally, you can order and file a lawyer's request to request documents or provide information. The specified document is an effective tool, since in accordance with the provisions of the Law of Ukraine "On Advocacy and Advocacy", state bodies are obliged to provide a response within the time limit established by law. Thanks to it, you can find out directly from the State Inspectorate of Architecture and Urban Planning of Ukraine:

• does the developer have all the necessary permits for the construction of an apartment?
• does the object meet the conditions for its commissioning?
• does the company have a license to build objects of the appropriate class of consequences?

Claim to court

The last stage, if the pre-trial settlement did not work, will be an appeal to the court. The statement of claim requires thorough preparation and includes:

• collection of evidence (contract with the developer, receipts for payment of services, copies of claims, etc.);
• compliance with the requirements of the Civil Procedure Code of Ukraine (there must be information about the parties, a detailed description of the situation, references to the norms of the law and the contract that were violated, clear requirements for the court, etc.);
• payment of the court fee in the appropriate amount;
• correct submission to the court (for a lawyer - through the ESITS).

How can an additional agreement to the main contract with the developer help you?

When the developer does not meet the deadline, he often offers investors to sign an additional agreement to extend the validity of the main contract. As a rule, if the company is in good faith, it must notify the investor sixty days before the date specified in the contract about the impossibility of completing the construction of the apartment on time. And only after that, bilateral negotiations are held and an additional agreement is signed. At the same time, you need to remember the possible risks of taking such actions. It is important to check that the additional agreement does not provide for:

• reduction of the investor's rights (in particular, regarding the collection of fines);
• indefinite deadlines for completing the work;
• the absence of additional guarantees of completion of the apartment construction from the developer.

In general, an additional agreement is a useful tool in interaction with the developer. Contacting a construction lawyer will help you resolve a dispute with your counterparty, develop quality documents for further interaction, and, if necessary, file a claim with a local court.

A lawyer from the Law Firm "Prikhodko & Partners" will act as a mediator in your negotiations with the developer and help you return the funds in case of violation of his obligations regarding the construction of the apartment. To find out the cost of his services, fill out the form below.