It becomes safe to buy future apartments in buildings that are just under construction. From now on, the construction customer must first register special property rights for such housing in the State Register of Real Property Rights on immovable property based on information obtained from the Single State Electronic System in the Field of Construction (EDESSB), and then alienate them to buyers at any stage of construction implementation. Such registration is possible only if there is a valid right to perform construction works.
This became possible within the framework of the implementation of the Law of Ukraine 2518-IX, in the development of which BRDO team participated.
Why is this important?
From now on, information about each future apartment or other object in the future building – location and main technical characteristics – will be entered into the EDESSB, information about special property rights to them – recorded in the State Register of Real Property Rights. This will provide protection against many risks and frauds that have been prevalent in the market for the sale of newly built housing.
Thanks to the new mechanism of registration of special property rights, a Ukrainian can become a full-fledged owner even of a future real estate object at any stage of construction and has the right to demand from the developer exactly the apartment that is recorded in the agreement and in the register. Also, the developer will not be able to change the technical characteristics of the apartment without the consent of the owner.
What was before?
Previously, there were many schemes for the purchase of apartments in the primary real estate market (preliminary real estate purchase agreement, property rights purchase agreement, etc.). But such agreements did not guarantee either property rights for future housing, or the provision by the developer of housing with the characteristics stated in the contract. In the event that the developer fails to fulfill his obligations, the person who invested in the future apartment had to prove his property rights in court. This situation led to the spread of a significant number of abuses, in particular, as experts claimed, every fifth deal on the market of new buildings fell into the section of dubious ones.
The most common abuses were multiple sales of one apartment to different buyers at the same time, unilateral change by the developer of the technical characteristics of the future apartment, etc. Also, the fact that in the event of any problems with the developer before the end of construction, the citizens who invested in him did not have the right to future apartments did not work in favor of the buyers.
Developers constructing objects whose construction permits were issued after October 10, 2022, are already required to register special property rights for future real estate. You can check the date of obtaining a construction permit in the Register of Construction Activities on the EDESSB portal in the “Declarative and Permit Documents” section.
The single state electronic system in the field of construction was developed by the Ministry of Community Development, Territories and Infrastructure in cooperation with the Ministry of Digital Transformation with the support of the USAID/UK aid project “Transparency and Accountability in Public Administration and Services/TAPAS”.
Specialists of the BRDO participated in the development of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Improving the Procedure for Providing Administrative Services in the Field of Construction and Creating a Unified State Electronic System in the Field of Construction”, which introduced the possibility of obtaining services in the field of construction precisely in in electronic form, as well as the Procedure for Conducting the EDESSB.