ElitExpert continues to prepare a rating of developers in the Odessa region, which will be released in the near future. In addition to the technical characteristics of construction, transparency of companies and the pace of completion of facilities, an important part of the assessment will be the analysis of legal aspects that directly affect the safety of investors. To draw readers' attention to potential risks, we asked for comments from lawyer Oleksandr Ryabets, managing partner of the Legal Partner Law Firm, who analyzed in detail the key legal "traps" that may await an investor when purchasing real estate.
"You need to start with the legal status of the object. You should check whether the seller has ownership of the object, whether the property is not pledged, under arrest, is not the subject of a legal dispute or joint ownership without the consent of other co-owners," notes Oleksandr Ryabets.
Special attention, according to the expert, should be paid to the developer: "In the primary market, most transactions are concluded not with the developer himself, but with an intermediary legal entity that is not responsible for putting the facility into operation. Therefore, it is important to check with whom exactly you are signing the contract and which structure owns the land plot and permits."
Another common area of risk is contracts concluded by power of attorney. As the lawyer warns, before signing the contract, you should not only read the power of attorney, but also check its validity in the notary register. Ideally, you should get the principal's contacts and confirm the validity of the powers directly.
Oleksandr Ryabets notes that in conditions of high competition in the market, many companies abuse the complexity of documentation.
"There is one piece of advice for investors: even if you plan to invest in economy-segment housing, do not skimp on legal due diligence. This is your personal safety. And it should start not with promises on a booklet, but with studying the real legal grounds for construction," the lawyer emphasized.
