URE Club Committee on Issues of Law Discussed the Draft Law No. 7084

On October 10, 2017, the URE Club Committee on Issues of Law considered the draft law No. 7084 On the Protection of Property Rights to Unfinished Construction and Future Real Estate Properties.

The draft law was developed by the BRDO (Better Regulation Delivery Office) experts in cooperation with the Ministry of Regional Development, Construction, and Housing and Communal Services of Ukraine and the Verkhovna Rada of Ukraine Committee on Construction, Urban Development, and Housing and Communal Services. It concerns future real estate properties and should protect the rights of construction investors, as well as attract lending for the purchase of new-built property.

Thus, according to information provided by the meeting organizers, over the past 6 years, Ukrainians have invested in housing construction 167 billion hryvnias. For comparison: it is 27% of the state budget for 2016. At the same time, these funds are virtually unprotected from the point of view of the law. This situation multiplies illegal development and scams with resale of apartments. To radically change this situation, according to the draft law, the future real estate property must be registered by the building owner, and sale of apartments in it will be based on the principle of alienation of the property parts under the scheme, which is now applied to the completed real estate properties.

It’s good to find out about approved laws from the news, but to participate in lawmaking is the prerogative of leaders. I am pleased to have been able to participate in discussing a draft of such an important for the construction industry law.

Managing Partner of the Rezultat law firm Maxim Polishkevych notes

According to the results of the meeting of the URE Club Committee on Issues of Law, it was decided to introduce some clarifying amendments to the draft law and return to its discussion during further meetings.