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Real estate and construction Registration of property rights for unfinished construction

Kirilkin Radion

Head of real estate and commercial law practice

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kirilkin@prikhodko.com.ua

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Specialist in the field of commercial law and process. Real estate, construction support; land law and protection of property ownership.

Registration of property rights for unfinished construction

The procedure aimed at officially recognizing and entering into the state register information about a special property right to an unfinished construction object is of key importance for all participants in the construction process. First, such registration is one of the main mechanisms for protecting the rights of future owners. Second, it makes information about real estate public, which increases transparency when concluding relevant contracts in the real estate sector. Finally, the object of registration of property rights to an unfinished construction is not the object itself, but the right to claim it after completion of construction, which additionally provides appropriate guarantees for the developer and investor.

What are property rights to an unfinished construction?

This category is a specific type of property rights that arise in relation to real estate objects that have not yet been put into operation. Below are the main features of such rights:

firstly, the subjects of this right can be both individuals and legal entities that invest in construction;
secondly, registered rights can be the object of agreements, such as the assignment of the right of claim;
thirdly, registration can be used as a way to ensure the fulfillment of obligations under the contract;
fourthly, after the completion of construction, property rights are transformed into a full-fledged right of ownership of real estate (new construction).

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What real estate objects are considered unfinished construction?

Such real estate objects include structures, buildings or other real estate objects that are in the process of being created and have not yet been put into operation. The main characteristics of unfinished construction objects are as follows:

the presence of a valid construction permit;
the objects may be at different stages of construction;
the absence of an officially issued act of putting the object into operation.

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Registration of property rights to unfinished construction: main stages

Initial registration of documents in the Unified State Electronic System for Construction

One of the fundamental stages is the registration of documentation in the Unified State Electronic System for Construction (hereinafter – the Unified State Electronic System for Construction). This step involves obtaining:

technical specifications for real estate;
urban planning conditions and restrictions (if necessary);
design tasks from the customer;
design documentation for construction;
expert report on the compliance of the documentation with the established standards (if necessary);
building permit or notification of the start of construction work;
decision on assigning the building’s mailing address;
agreement on the organization and financing of construction (between the participants in the investment process).

The above list of documents must be uploaded to the system. After that, all that remains is to register the guarantee share. You can find out what it is and how the specified registration procedure is carried out by contacting our real estate and construction lawyer for legal advice.

Submitting an application for registration of a special property right for unfinished construction

The next stage is to create and submit an application in the UDESSB system. To obtain its form and further formation, it is necessary to upload the registration numbers:

document on determining the guarantee share and distribution of property rights;
document giving the right to perform construction work.

After that, the customer only needs to check the correctness of the displayed information and confirm the submission of the application, waiting for a response.

Making changes to the State Register of Real Property Rights to Real Estate

After successfully signing the application for registration of property rights to unfinished construction, the next step will be for the customer to apply to the state registrar to enter information into the State Register of Real Property Rights to Real Estate (hereinafter referred to as the DRRP). For this purpose, the following documents will also need to be provided:

application for state registration downloaded from the Unified State Register of Real Property Rights;
receipt confirming payment of the administrative fee;
documents stipulated in Article 27-2 of the Law of Ukraine No. 1952-IV.

Conditions for successful registration of property rights to unfinished construction

For successful official registration of rights to an unfinished construction site, the following requirements must be met simultaneously:

the presence of registered rights to the land plot by the customer;
no violations of legislation in the field of urban planning;
simultaneous registration of property rights to all future objects as part of the unfinished construction;
the administrative fee for state registration has been paid in full (determined as a percentage of the subsistence minimum or minimum wage).

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How can we help?

Prikhodko & Partners lawyers can play a key role in the registration process, providing legal support at every stage. The main areas of their assistance are:

consultation and analysis of the developer’s documents;
identification of potential risks and “pitfalls” throughout the procedure;
legal support of the registration process at all stages;
assistance in preparing and submitting the necessary applications;
legal assistance in case of violation of the terms of the construction contract (if necessary).

Real estate and construction lawyers are indispensable assistants for both investors and developers in the process of registering property rights to unfinished construction. To receive a consultation and find out the cost of legal support, fill out the form below.

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Were other lawyers handling your case?

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Are you in Kyiv or Kyiv region?

Yes

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Do you need legal assistance urgently?

Yes

In which regions of Ukraine do you work?

The department of real estate and land law, as a rule, works in Kyiv and the Kyiv region.

We provide our services in all regions of the Kyiv region, for example:
Bilotserkiv district (towns of Skvira, Tarasha, Bila Tserkva, Uzyn, Tetiiv).
Boryspil district (the cities of Boryspil, Pereyaslav, Yagotyn).
Brovary district (the cities of Brovary, Berezan).
Buchansky district (towns of Bucha, Irpin, Vyshneve).
Vyshhorod district (the cities of Vyshhorod, Slavutych).
Obukhiv district (towns of Obukhiv, Boguslav,
Vasylkiv, Kagarlyk, Myronivka, Rzhyshchiv, Ukrainka).
Fastiv district (the cities of Fastiv, Boyarka).

It is worth noting that on some issues (services) we work throughout Ukraine, contact and clarify information by phone!

Do you provide consultations online or over the phone?

Yes! If you do not have the opportunity to come to the office in Kyiv, then you can pay and receive a consultation by phone or in one of the applications for conducting calls/conferences.

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