Constraction Scam

The instruction for the investor if the builder doesn’t fulfil the liability

Considering features of construction business of Ukraine, investors often come up against a situation when the builder isn’t able to fulfil properly the liabilities – whether it be a delay of the termination of a construction or “frost” of an object. As a rule, the majority of cases with liabilities execution suspension by the builder are unilaterally connected or with financial problems, or with the pressure of monitoring authorities (if an object is built with obvious violations of construction regulations and other provisions of the legislation).

How to return the square meters

To understand, how we could act in such situations we begin with the actions which the investor shouldn’t do at all:

It is doomed to a failure in advance:

  • agreement cancellation and requirement of investments return.This way is doomed to a failure in advance as if the builder has already experienced financial difficulties, then you can only help it to go to insolvency proceeding;
  • in court, you could require compensation of the lost investments. This way also, most likely, won’t result in success in connection with quite considerable term which will leave on lawsuits. Even having received the positive judgment, not the fact that by then the builder won’t go bankrupt and to perform the judgment often much more difficult than to receive it.

To yield to the builder or to hope for destiny?

To follow the tastes of the builder and “to sympathise” with his financial position, as a result, to sign supplementary agreements about the postponement of putting into operation or to perform other similar actions don’t conduct to permission of the current situation at all. It you will achieve only that postpone the moment of decision making, with a high probability,to “start” a situation so that will make any cardinal decisions already late.

To wait for resolving the situation with the builder?

To hope for the conscience of the builder and to expect, so far problems to be resolved in itself – is an absolutely unpromising case which isn’t bringing to any positive results. As they say “He who would eat the fruit, must climb the hill”. After we understood that investors shouldn’t do at all, we will walk according to the list of what more likely will allow to influence the builder and to receive long-awaited square meters:

  • to hold a meeting of investors of a construction object and to elect a committee which will represent all investors;
  • to address lawyers or advocates (who specialise in the real estate, the criminal law and fight against raiding);
  • to analyse a current status of the builder, a construction object for the purpose of identification of a perspective;
  • to develop an algorithm of actions for rendering pressure upon the builder within the legal framework.

Only united and timely actions of investors can change a situation and achieve from the builder execution of the liabilities by the last, is important, is final also the level of legal support of investors as all operational activity will be conducted by lawyers.

What is referred to the choice of legal support – investors shouldn’t sign any contracts with the persons who don’t have experience in the fight against raiding (and capture of the property of investors just and is raiding) and not having a specific algorithm of actions as chaotic actions  can’t be effective in principle.

Read also: The brief  review of today’s tendencies in construction of housing


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