Buying an apartment in Ukraine could be very convenient, because of lower real estate prices and more profitable rental rates than in other European countries. But there are some risks. Gregorii Tripulskyi, founder and managing partner of De-Jure Law Firm describes the main ones.
The risk No.1 – The unfinished property
Very often, the hope of acquiring your own square meters turns into an eternal wait, as the developer violates the deadlines for the completion of work or the commissioning of the object. As a result, the buyer does not get a comfortable home, but a headache, trying to solve the current situation and trying to somehow push the developer to finish building the house or get his money back. It is very important to check the documents of the developer, his rights to the land plot, as well as find out his reputation.
The risk No.2 – «Incorrect» agreements
Not really understanding the documents, the buyer can sign an agreement, that doesn’t guarantee him the receipt of square meters. For example, a simple written agreement, in cases where a notarial form is required. Lack of correct consent of the spouses. To minimize taxation, some sellers suggest signing a gift agreement instead of a sale or purchase or lowering the value of the transaction. And some even become victims of developers who can sell the same apartment to several people.
The risk No.3 – The «troubled» real estate
The «troubled» real estate can be found in both the primary and secondary real estate markets. For new buildings, problems most often relate to permits for construction or registration of a land plot. For the secondary market, the range of problems is much wider: improperly withdrawn mortgages, arrests that were not entered in the register, frequent suspicious change of owners of an object, the emergence of new co-owners who did not use their pre-emptive right to purchase, non-compliance with the privatization procedure, and many others.
The risk No.4 – The fraud
The fraud can come in many different forms: forged documents, sale without the consent of co-owners, sale under fake powers of attorney, fraud in receiving an advance payment and signing a preliminary agreement.
The risk No.5 – Bankrupt
When buying real estate, an important role is played by the status of an individual or entity, which is a seller, since if it is declared bankrupt, transactions made within three years prior to such a decision will be cancelled.
All these risk described above for real estate transactions can be managed thanks to a proper support by a law firm, which can check if the contracts are correct, if the seller has legal power for the transactions and how to protect the investment.
For in-depth information: De-Jure Law Firm in Odessa