Real estate lawyers

How to check the developer yourself?

You can also read this material in Russian

Every year the number of apartments in the primary market increases. In Kyiv alone, their number reached 70,000 in 2017. At the same time, more than 100 new buildings in Kyiv are problematic. Although the era of fraudsters Elite Center already behind, but even today not all developers are bona fide.

Thus, many new buildings are erected without permits, which, in turn, either makes it impossible to put such a house into operation, or generates long-term delivery. In order not to be left without an apartment and money, you should carry out a full inspection of the construction site and the developer.

It is better to apply for a professional legal inspection of the new building and the developer to lawyers working in this field. If this is not possible, then a surface inspection can be done independently.

Let's help to buy real estate safely

 

What to pay attention to first of all?

  1. Earth.  For construction, the developer must own or lease land. Before signing the contract, the developer must request a document confirming the right to land (for example, a lease of land). It should be noted that the owner of the land, the contractor (the company that builds the house) and the company that sells the apartment may be different persons. In this case, it is necessary to demand from the developer the documents concluded between the land user and the seller of apartments.  

To verify the owner or tenant of the land created Public cadastral map. The information contained in it is open, so everyone can check location of the land plot, its cadastral number, form of ownership, purpose of the land plot, as well as its area.  For the construction of a house, the site must be assigned the correct purpose, for example: for the construction and maintenance of an apartment building.

Example of land search.

How to check the developer - public cadastral map

You can find out about the problems with the land plot (arrests, bans) after receiving a certificate from State Register of Real Rights of real estate, The search criteria can be selected cadastral number, which you found on the Public cadastral map, the address of the land or the name of the developer.

Example search.

How to check the developer - an extract from the real estate register

  1. Construction documents.

For the construction of a residential building, the developer is obliged to obtain town-planning conditions and restrictions on the development of the land plot. This is a document that contains planning and architectural requirements for design and construction. For buildings in Kiev, such information can be obtained from Urban cadastre of Kyiv. For other regions, information should be sought on local council websites. It has also been created on the website of the Kyiv Urban Planning Cadastre interdepartmental center of building of Kiev on which illegal constructions of the city are noted.

How to check the developer - urban cadastre of Kiev

In addition, in order to build a multi-storey building, the developer must obtain a construction permit, which can be checked on the website State Architectural and Construction Inspectorate of Ukraine On the specified site you can check and the contractor's license to carry out construction, the presence of which is mandatory.

Example of finding a construction permit.

How to check the developer - a permit for construction work

  1. Inspection of the developer's company.

After making a request to  Unified State Register of Legal Entities, Individual Entrepreneurs and Public Associations, you can check the founders of the developer, its activities, whether it is declared bankrupt or whether it is not open enforcement proceedings against him for outstanding debts. To find out about the debts of the developer to the state, you need to use the service State Fiscal Service.

Example of finding a company in the registry.

How to check the developer - the register of legal entities

An important step in verification is to search in Unified State Register of Court Decisions litigation not only on the object of construction and land, but also whether the developer sued the buyers for breach of their obligations.

 We should not forget about the reputation of the developer, the number of facilities put into operation and the number of years of activity in the market. You can use information obtained from the media or forums. However, such information may not always be true, so it should also be carefully checked.

As you can see, when inspecting a new building, you should take into account many factors. Of course, even the most positive conclusion about the developer is not a guarantee of 100% delivery of the object. However, having carried out a legal inspection of the new building, You will know exactly which object is better not to invest.

The article is published on the site "Liga.net"

Andriy Gevko, lawyer, partner of the law firm Bargen

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Andriy Gevko

partner of the law firm Bargen

Specializes in supporting real estate transactions and litigation

The total amount of accompanied transactions is more than UAH 100 million.

Bargen Law Firm

Voloska Street, 2, office 1, Kyiv

mob. (097) 786 53 06

info@bargen.com.ua

© Bargen Law Firm 2018

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