Constraction Scam

How the private investor does check the right to a building of the lot. Part ІІ

Lawyers Daily continues to inform readers and private investors about the  testimonial signs of the fact that the builder can’t legally put a construction object in the operation.The availability of all documents on the land plot  under a construction object, availability of all registered declarations and other allowing documents not always demonstrate that an object of a complete construction finally will be put into operation.

Technical compliance

According to regulations of the Resolution of Ukrainian government No. 461 of 13.04.2011 “About questions of acceptance in operation ended by the construction of facilities” all works on a construction object  shall be performed which are provided by the project documentation according to construction regulations, state standards and rules .

  1. If it is apartment houses of  І – ІІІ categories complexity, it is only necessary to register the declaration of readiness for a construction object operation for an introduction to its operation.
  • In connection with relative ease of І – ІІІ categories houses entering, the beginning builders prefer to category a construction complexity of such houses.
  • Also, it is connected with the fact that in the case of acceptance of  І – ІІІ categories complexity houses, the actual technical examination of a construction object, as a rule, isn’t conducted that in turn allows builders to make the small deviations from the project documentation.
  1.  IV and V complexity category houses are accepted in operation on the base  act-object readiness  for operation by the issue of architectural construction supervision of the certificate by authorities.
  • In similar cases, the staff of the State architectural and construction inspectorate of Ukraine is obliged not only to check formally information specified in the declaration (act) and other related documents but also to check compliance of a project subject documentation and to requirements of construction regulations, state standards and rules.

P.S. Private investors should pay special attention to the last requirement. It is the  necessity  of construction regulations  observance (DBN).

A juridical side of a question

The investors who having some experience in investment into housing and  the lawyers who provide an audit of a construction object and the builder give not enough attention to the observance of the state construction regulations by the builder .

At first sight, it seems that it is not work of the lawyer. It is  a construction technical component,the construction project which always possible to rewrite. However you should be very attentive and keep in mind: if the lawyer/attorney / law company undertakes liabilities according to the analysis of a subject to expected investment (and actually protection of your investments), he is obliged to execute them qualitatively or  not to undertake it at all.

Certainly, it will affect the price of such audit of an investment object. However, it is always necessary to remember that the more you save on audit, the less you know about an investment object. Therefore, the risk significantly increases to lose the invested means.

The legal services cost in our country, as a rule, not much. The  high-quality services which are provided by the lawyer/attorney and the engineer couldn’t cost a few.

The situation with one of construction objects in Irpen can be an example of neglect to an audit of technical documentation of the builder regarding compliance to the state construction regulations.

The builder,  who wish  violated town-planning conditions, but to construct as much as possible meters of housing, reduced height of the apartment  and won the height on the additional floor. It would seem that 10 centimetres shan’t influence strongly on breaking-in. However, the builder had done  violations of the apartment with minimum altitude   and  completely constructed construction object wouldn’t have put into operation. It was  “sentenced” to demolition by the court decision.

The summary for the investor

Some builders, who want  to put the house into operation which was built with violation of construction regulations or without the availability of allowing documents on a construction or the land,   arrange the property right to the newly created construction objects even judicially.

Point 10 of the resolution of the Ukrainian government  No. 461 of 13.04.2011 provided, that in a case of recognition of the property right to an object of an unauthorised construction by a court decision, it is accepted in operation according to regulations of this resolution on condition of a possibility of its reliable and safe operation by results of such object technical inspection. A technical examination is conducted by a subject of economic activity which incorporates the corresponding contractors who have  received the qualification certificate.

As the result, If investors are interested in the protection of the assets, the future or fulfilled investors have to know that the audit of a construction object has to be provided  not by the universal lawyer but by the group of lawyers of various specialisation.

Read also: How the private investor does check the right to a building of the lot.Part І