Constraction Scam

Signs of the facility illegal construction

As the investor, who decided to purchase the apartment in a new building,how to understand that an object won’t be taken down at any time? The main sign is a presence at the builder of the land parcel under an expected object.   

You should know the rights and to understand a situation

Usually, large and average builders lease the parcels of land under a construction or redeem. The builders with the one and only building arrange the parcel of land under a construction on one of  the company owners builder or sign the contract on share participation (joint activities) with the company owning the land.

The builder acting only within the law and the person interested to attract investors shall be ready to show everything,  or almost everything, documents on an object of future construction in confirmation of such legality and gravity of the intentions. The investor also shall use it.

If the builder conceals from the investor documents of title on the land  or town-planning conditions it can mean only that they are absent also a construction object initially illegal.

What to ask in sales office

However, even if in sales office they  show you entitling documents for the land  (the lease contract, sale and purchase or other similar agreement) you don’t hurry to rejoice and at once to sign the agreement on the introduction of investments into a construction object.

That is why:

  • The parcel of land under a construction object according to the characteristics is obliged to correspond to a number of storeys of the building which is planned to be built. Especially, it concerns 6-7 floor construction objects within the Kyiv city.

For example, in some districts of Kyiv on the parcels of land intended for building houses of an average number of storeys (according to DBN B.1.1-16:2013 is 4-5 floor buildings), floor houses are built the 7th. It is absolutely illegal and similar objects have every chance to receive the status of an unauthorised construction and never to be put into operation.

  • Town-planning conditions contain the point in which requirements to the number of storeys of a subject to the building are specified. Some unfair builders, in town-planning conditions, are accustomed to referring to some letters of the Ministry of Regional Development, Construction and Housing which allegedly allowed to perform a construction of a bigger number of storeys, than it is provided by characteristics of the parcel of land and regulations of DBN B.1.1-16:2013.

However, practice shows that by results of requests in the Ministry, the last answer, something they didn’t send the letter with similar details at all, or the specified letter has no relation to a required construction object at all. It automatically equates a construction object to unauthorised and illegal, and such which is the subject to demolition.

  • The purpose of the land parcel doesn’t allow to build on it the apartment house. If you came up against a situation when the construction of the apartment house is conducted, however, the purpose of the site doesn’t correspond to the planned construction object, and managers convince that the purpose of the land would be brought into accord with legislative arrangements in the nearest future. The process of the land  purpose change  was begun prior to the beginning of a construction. It is 100% an occasion to stop and think whether you are ready to lose the investments.

As Lawyers Daily already has reported, “Elite centre” was an error of a part of investors just trustfulness to words of managers that is  the purpose of the parcels of land under a part of construction objects would be brought into accord with provisions of the national legal system “already tomorrow”. If you are ready to go  to meetings with requirements to complete objects of a residential construction for10 years or to return your terribly earned means, you can safely invest in similar buildings.

  • In the analysis of documents for the land you surely need to check the validity of the lease land parcel contract as the lessor could for any reasons terminate it unilaterally that also threatens the builder and his taken place investors with a possibility not of entering of a construction object in operation.

The most important are  the potential investor shall find out for himself before decides to sign the contract with the builder.

Remember!

You should pay a special attention to the following: if the builder has no documents on the parcel of land, it means that you need to think at least of the scale of risks, and at most — “to run” from similar building because the chance of entering of such construction object in operation, is almost equal to zero.