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Real estate

Risks when buying housing from a developer

Most residents of Kyiv consider the most prestigious and popular cities within a 30-kilometer radius of the capital to be Irpin, Bucha, Brovary, Vyshneve, and Vyshhorod. A slightly smaller number of respondents spoke in favor of Boryspil, Ukrainka, and Boyarka.

What makes the suburb so attractive, and how much money is needed on average to get an apartment there? What risks may arise when purchasing apartments from a developer in Irpin?< br>
The suburb attracts Kyiv residents with tempting prices, but one must be prepared for risks. In addition to traditional high-rise buildings offering apartments from developers, Irpin can offer buyers apartments at lower prices in 3-4 story buildings, construction of which is mainly carried out by individuals. The main risks are associated with these apartments, especially if the purchase uses a scheme with preliminary contracts.

What is a preliminary contract essentially? It is an agreement that the developer undertakes sometime in the future, upon obtaining ownership rights to the residential premises, to sell it to the buyer at an agreed price. Moreover, such contracts rarely specify exact deadlines for the completion of the house.

Thus, it turns out that you are not buying an apartment, but only the right to buy it in the future under a purchase and sale agreement. Moreover, in almost 100% of cases, the developer demands money upfront, formally – in order to ensure that the buyer does not refuse the purchase in the future.

An additional risk is that the apartment may turn out not quite as described in the contract. Moreover, the developer bears no responsibility for such discrepancies – the only thing the buyer can do is demand compensation in case of a 'shortage' of square meters.

You should also pay attention to the status of construction, as individual developers often engage in unauthorized construction, which ultimately leads to problems with obtaining documents for the house and its commissioning.

The most fundamental risk remains that the legislation does not yet provide mechanisms for effective debt recovery from individuals, so getting back the money paid from an individual developer, 'if something happens,' will be very problematic.

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