Guaranteeing property rights to real estate to be constructed in the future

Reform objective

To reduce the potential risks of fraud by real estate developers when purchasing housing and protect residential real estate investors.   


Ensuring transparent attraction of funds of individuals and legal entities in construction, introducing a guaranteed share of real estate construction, and using it to build construction objects in case of construction project owner’s financial insolvency, establishing a special mechanism of the bankruptcy of legal entities acting as construction project owners, introducing a procedure of registration of future real estate objects. 


Draft Law #5091 “On Guaranteeing Property Rights to Real Estate to Be Constructed in the Future”. 


The draft law provides for the following changes: 

  • As a result of concluding a purchase/sale agreement, a buyer receives the status of a guaranteed buyer instead of the investor status with risks and, accordingly, is protected by laws on consumer protection (for individuals) and property rights. 

  • Special property rights will be registered for future real estate objects. This makes it impossible to resell them. 

  • A construction project owner/developer can start the sale of future real estate only after the registration of special property rights separately for all apartments or other objects. This also makes it impossible to purchase residential or non-residential premises in illegally constructed objects. 

  • The introduction of a guaranteed construction segment — a part of the object that a developer cannot sell before the completion of construction. This is an effective source to cover costs in case of completing unfinished construction objects by another construction project owner. 

  • A construction project owner/developer is obliged to agree on adjustments in the design documentation with buyers if such adjustments affect their interests. 

  • The law establishes mandatory requirements for the publication of information about construction project owners and future apartment buildings. 

Why is this essential for Ukraine?

In Ukraine, residential real estate investors often face serious problems instead of promised apartments they have already paid for: suspended construction projects, the bankruptcy of project developers, real estate developers that do not have construction permits, and in some cases, double sale of real estate. That is, sometimes an apartment is sold to two people at the same time.  

The official data of the Ministry of Regional Development shows that as of the end of 2019, there were more than 150 problematic housing projects in Ukraine. This means more than a hundred thousand affected citizens who did not receive their paid housing.