Contract of purchase and sale of property rights to the object of unfinished construction

Today, the purchase of property rights at the stage of real estate construction is one of the most popular ways to purchase real estate.

In current Ukrainian legislation, property rights are defined as “waiting rights”. It is an integral part of property as an object of civil law. Many potential buyers of real estate are interested in how to conclude an agreement for the purchase and sale of property rights for an object of unfinished construction. Specialists of our law firm Prykhodko and Partners will talk about this in this article. You can rest assured that all services will be provided at a high professional level.

Peculiarities of the onset of property rights to an object of unfinished construction

Property rights to real estate and real estate itself are different things. When an investor acquires property rights to real estate, after some time they are transformed into real estate ownership. At the same time, the courts and tax authorities also maintain the position that the sale of property rights is the sale of the real estate itself.

The right of ownership of a real estate object arises from the moment when this object is put into operation. Of course, if it is stipulated by the concluded agreement or the law.

In the interpretation of the Civil Code of Ukraine, such an object receives the status of a full-fledged object after passing all stages of registration with state authorities.

As for the object that is in the “construction in progress” status, this is real estate for which construction permits have been issued and the costs of its construction process have been recorded. At the same time, such a real estate object was not put into operation in accordance with the current Ukrainian legislation.

Also, the Civil Code of Ukraine regulates the following: before the construction is completed, a person is considered the owner only of the equipment and materials that were used during its construction.

Nuances related to the registration of property rights

Legalization of the right to property involves the following stages:

• Creating a document database

The developer creates a special database of documents that will be needed to register property rights for each of the construction objects. All these data are in the Unified Electronic System of Ukraine in the field of construction.

Information contained in the database:

1. Data about the developer.
2. Information about the construction object (floor area, area, cadastral number, etc.).

• Submission of documents for registration of property rights

At this stage, the official registration of the future real estate object takes place.

After that, the property right is recorded in the State Register of Property Rights to real estate objects.

In addition, the law provides for a mandatory guarantee by the developer of the realization of rights to property, i.e., an object of unfinished construction.

How is ownership of an object under construction processed?

The legislation of Ukraine clearly regulates the procedure for registration of the ownership of an object of unfinished construction.

The procedure is as follows:

Obtaining documents from the Department of Urban Planning and Architecture

We are talking about the construction passport and urban planning conditions.

Carrying out works on technical supervision

On the basis of the received data, the project and the author’s supervision are developed. In the future, the notification regarding the start of construction works will be registered. The final stage is obtaining a construction permit.

Recognition of ownership

Ownership is registered in a special Register. Its confirmation is the receipt of the extract.

Assistance of professional lawyers in concluding an agreement for the purchase and sale of property rights for an object of unfinished construction

In order for you to properly invest your own funds to obtain property rights to an object of unfinished construction, you need to enlist the support of professional lawyers.

Lawyers Prykhodko and Partners will develop an effective algorithm for securing own assets in the matter of real estate purchase. We will help you draw up the contract correctly, without “pitfalls”. Our lawyers know all the intricacies of current legislation in the field of real estate.

Do you still have questions? We are waiting for a preliminary consultation! To calculate the cost of a lawyer’s services for concluding a contract of sale of property rights for an object of unfinished construction, fill out the form below.