Real estate market Kiev. Hidden problems.

real estate market kievAmong the developers of Kyiv survey was conducted. According to the survey, bribe officials to reach 30% of the buildings. In this regard, flats Kyiv became prohibitively expensive. The highest level of corruption in the structures that are responsible for commissioning and connection to all communications.

New Economic Truth published two articles on the responsibility of developers.

The first – the “elite center could be repeated” – examines the bill proposed by the Confederation of Constructors of Ukraine. This article will be interesting for everyone who is interested flats Kyiv.

This act provides developers turn right to enter into investment agreements and treaties equity to be able to raise funds without construction financing funds, and introduces compulsory insurance risk investors.

The second article – an interview with the author of this bill Yuri Serbin. In his view, this document may protect investors.

However, what this protection is unclear, because the proposed project activities do not solve any problem with guarantees for investors.

In fact guarantees for investors who are investing in housing, almost no one law or the treaties that developers enter into with them.

Real estate market Kiev. Guarantee of property rights.

We can not accept Serbyn about the fact that the introduction of construction funds – CFF – did not protect investors. No warranty investor funds were not brought. They only become superfluous padding.

Thus, cases like “Elita-Center” are multiplied. After paying the full cost of housing investors are only entitled to require the developer to transfer ownership of an apartment building after entering into service.

By the time all property rights to the apartment and other parts of the building are reserved by the developer. The contracts propysuvalosya always that way.

“Economic truth” already wrote about the two home where developers are given property rights to the apartment sold to people pledge of “Kyiv”. Then the two construction companies went bankrupt without paying the loan and property rights for apartments went bank mortgage contract developers.

Investors both houses sued several years with the bank. Finally in 2013 the Supreme Court ruled in favor of the investors of a house. Press wrote about the event as the final victory of investors and eventually ban for builders to force property rights to the apartment.

However, all is not well. Investors still need to ensure that the “Kyiv” has consented to the exclusion of apartments from the registry restrictions, and this is another long trial.

Developers are unlikely to meekly accept this decision as a last resort because it denies them the ability to attract bank loans.

To avoid such cases, developers should enter into agreements with investors buying and selling property rights to the apartment. Some companies are doing well.

Conclusion investment contracts and equity will not change anything, because they never observed and is unlikely to be displayed that property rights are transferred to the apartment investor immediately after the payment of all money.

Real estate market Kiev. Responsibility of the developers.

Another innovation of the bill – mandatory insurance risk investors.

Today the leading insurance companies are reluctant to insure the risks of investors in the construction of housing for the large number and nature of risks.

“Insurers can not get coverage because foreigners do not want to deal with Ukraine on such risks. We have thousands of unfinished objects “- said the deputy chairman of the League of Insurance Organizations of Alexander Zalotov.

Risks insurers increase and the low level of responsibility of developers to investors. High level of responsibility does not require legislation or conditions common market agreements.

“Based on how regulated the relationship builder and investor in Ukraine is extremely dangerous to invest inreal estate market kiev housing to buy it in new buildings. Number of conflicts in which can get an investor depends on the imagination of irresponsible builder “- the chairman of the Association of victim assistance investors Alexey Goncharuk.

The law “On financial and credit mechanisms and management of property in housing construction and real estate” allows developers did not fulfill its obligations as well as to carry out fraudulent transactions with new buildings, says senior partner of law firm “Kravets & Partners’ Rostislav Kravets.

“Contracts with investors prescribed so that by passing the money to the FSF, the investor can not control the construction and expenditure of the fund,” – he said.

Moreover, at the slightest fluctuation of the exchange rate is a high risk that the investor does not receive or acquire an apartment, or get it with a long delay and additional costs, concludes lawyer.

So the question arises: what is the insurer in their right mind would take over the duties to compensate investors in such circumstances?

Real estate market Kiev. About the drawback.

The situation of investment in construction is complicated by other factors. Most investors often do not check the reliability of the developer are not responsible for it.

real estate market kiev“Check of reliability extremely difficult. It requires a skilled lawyer. Analysis of available documentation may only last a few weeks. In addition, the domestic market is almost no one else offers such services, which means that demand for them is not “- says Hohcharuk.

Spending a lot of money, investors are buying up apartments as casually as to buying stuff. In conflict situations affect us try one. Most will remain on the sidelines and waiting for something all over. With several hundred investors to action resorted to only ten.

However, most developers are in a very unfortunate situation with tax and regulatory authorities. About the size of bribes that companies have to give representatives of local government, is legendary.

This year the European Research Association published the results of his research. It was found that bribes developers reach 30% of project cost. In this case more than 60% of respondents named the most corrupt bodies responsible for commissioning and connection to communication.

In such circumstances, it is difficult to expect that regulatory authorities will detect violations of building codes and help bring to justice unscrupulous developers. Offers are referred to the bill on the regulation of the construction market experts evaluated negatively.


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