CONSTRUCTION INVESTMENT LEGISLATION IMPROVED

Legal alerts

CONSTRUCTION INVESTMENT LEGISLATION IMPROVED

Law of Ukraine “On Ensuring Proprietary Rights to Real Estate Objects to be Constructed in the Future” No. 2518-IX (“Law”) entered into force on 10 October.

This Law aims to protect the rights of those investing in construction and eliminate some legislative gaps in this area.

To achieve this goal, the Law:

  • introduced a new party responsible for the organisation and financing of construction – the developer
  • provided for a future real estate object (“FREO”) as a new object of civil circulation, which a construction initiator or a developer (“Constructor”) may sell after registering a special proprietary right before the start of construction
  • granted the owners of special proprietary rights to the FREOs the right to demand in court the recognition of the ownership right to the object in respect of which the special proprietary right arose
  • established a fine for the Constructors that fail to comply with requirements on public disclosure of information about future residential construction
  • established FREO sale and purchase agreements, agreements for participation in a CFF, issuing of target corporate bonds and REOF certificates as the only options to invest in construction
  • restricted partial disposal of FREOs by the Constructors before the objects are commissioned

The Law prevents the double resale of objects but needs further development in part of introducing effective tools to protect investors’ rights from unfair Constructors.

We will be happy to help you assess the Law’s impact on your future projects.

Related industries

Posted on October 17, 2022

The Antimonopoly Committee of Ukraine updates the Merger Regulation

The Antimonopoly Committee of Ukraine (“AMC”) has updated the Merger Regulation. This step is part of a more significant reform of Ukrainian antitrust law (find more information about the reform here). Below, we are sharing a brief overview of the main changes in the Ukrainian merger control landscape brought about by the antitrust reform and […]

Posted on February 28, 2024

AVELLUM acts as Ukrainian legal counsel to Stellantis on the acquisition of AI technologies and IP of CloudMade

AVELLUM acted as Ukrainian legal counsel to Stellantis N.V., a multinational automotive manufacturing corporation, in connection with acquiring the artificial intelligence framework, machine learning models and intellectual property rights and patents of CloudMade, a developer of smart and innovative big data-driven automotive solutions. CloudMade’s software technology will support Stellantis’ strategy of developing intelligent mobility products […]

Posted on February 13, 2024
Subscribe to our Newsletter
Back
Search results: