Legal Support for Purchasing an Apartment in a New Building
Buying an apartment in a new residential development is a significant step involving major financial commitments and risks. Legal support helps verify the developer, assess the legality of the transaction, avoid fraud, and protect the investor’s interests.
Why Is Legal Support Necessary When Buying an Apartment in a New Building?
Key risks when investing in primary real estate:
- Missing construction permits and approvals.
- Construction on land with restricted or improper designated use.
- Denial of commissioning of the building.
- Double sale of the apartment or seizure of property rights.
- Non-transparent financing schemes (forwards, preliminary agreements, etc.).
Legal assistance allows you to identify hidden risks before signing the agreement and ensure the documentation provides actual guarantees of ownership rights.
Stages of Legal Support in Buying an Apartment in a New Building
1. Due Diligence of the Developer and the Construction Project
Legal experts from GlobalBud Ukraine provide:
- Verification of the developer’s registration data (State Register, licenses).
- Review of permit documentation:
- land ownership or lease rights (State GeoCadastre, Register of Property Rights),
- urban planning conditions and restrictions (UPC),
- notification or permit to start construction (DIAM),
- technical specifications.
- Analysis of the developer’s track record and previously completed projects.
2. Review of the Sale Scheme and Documents
Various legal models are commonly used in new developments:
- Agreement on the purchase of property rights.
- Preliminary sale and purchase agreement.
- Construction financing fund (CFF).
- Forward contracts (via Collective Investment Institutions).
Each scheme has its own legal implications, level of investor protection, and tax considerations. We assess:
- whether the scheme is legal,
- whether it is not fictitious,
- how to properly register your rights to the property,
- how to secure deadlines, pricing, and guarantees.
3. Verification of Property Rights to the Object
At this stage, the lawyer checks:
- whether the property is under lien or arrest,
- whether the rights have already been assigned to third parties,
- whether there are any legal disputes or bankruptcy proceedings against the developer.
4. Support During Contract Signing
- Participation in negotiations with the developer or agency.
- Introducing amendments to the contract in the client’s best interests.
- Verification of the parties’ details and signatory powers.
- Consultation on taxation, payment methods, and state registration.
5. Post-Transaction Legal Support
- Monitoring the developer’s obligations under the contract.
- Representation in case of delays or changes in contract conditions.
- Support in the building commissioning procedure.
- Registration of ownership rights to the apartment after obtaining a postal address and technical passport.
Which Documents Must the Developer Provide?
Mandatory:
- Land documents (ownership or lease agreement, designated purpose).
- Urban planning conditions and restrictions.
- Permit or notification to start construction works.
- Project documentation with expert evaluation (for complex buildings).
- Document confirming the right to sell (CFF agreement, power of attorney, AMC license, etc.).
Common Mistakes Made by Buyers
- Signing contracts without reviewing the sale scheme.
- Ignoring legal and technical due diligence of documents.
- Failure to include the developer’s liability for delays.
- Payments through third parties or without proper documentation.
Why Choose GlobalBud Ukraine?
Lawyers from GlobalBud Ukraine have many years of experience supporting transactions on the primary real estate market. We:
- Conduct thorough due diligence of the property and developer.
- Develop a legally safe purchase scheme.
- Protect your rights as an investor.
- Provide full legal support “turnkey” — from due diligence to ownership registration.
We work with both individual and legal entities, including non-residents and international companies.
