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LAW OF UKRAINE

of August 15, 2022 No. 2518-IX

About guaranteeing the corporeal rights to real estate units which will be built in the future

This Law determines features of civil circulation of objects of construction in progress and future real estate objects and is directed to guaranteeing the corporeal rights to such objects.

Article 1. Determination of terms

1. In this Law the stated below terms are used in such value:

1) the owner of special property right on future real estate object - physical person or legal entity behind which in the procedure established by the law the special property right on future real estate object is registered;

2) the owner of special property right on indivisible object of construction in progress - physical person or legal entity behind which in the procedure established by the law the special property right on indivisible object of construction in progress is registered;

3) the owner of special property right on divisible object of construction in progress - physical person or legal entity behind which in the procedure established by the law the special property right on divisible object of construction in progress is registered;

4) warranty share of asset construction of real estate (further - warranty share) - set of future real estate objects which is determined for each divisible object of construction in progress (each queue of construction of each start-up complex) the corporeal rights to which are encumbered before acceptance in operation finished by asset construction (queues / start-up complex) for the purpose of ensuring completion of the corresponding object with other persons (including as a result of bankruptcy, insolvency of the customer of the construction/developer of construction);

5) the developer of construction - the legal entity who based on the agreement signed with the customer of construction provides the organization and/or financing (investment) of asset construction according to the legislation (including by attraction of financial resources of other physical persons and legal entities), and also behind whom in the cases provided by the contract with the customer of construction primary state registration of special property right on future real estate objects is performed and who acquires the right of the first alienation, transfer to direct trust as method of ensuring accomplishment of obligations and making of other transactions concerning such objects;

6) future real estate object - the component of divisible object of construction in progress provided by the project documentation on construction which after acceptance in operation finished by asset construction will become the independent real estate unit (the apartment, the indoor parking space, other residential or non-residential premise, the parking place and so forth). Future real estate objects are subdivided into future objects of the residential real estate (the apartment, other premises, etc.) and future objects of the non-residential real estate (the indoor parking space, other non-residential premise, the parking place, etc.);

7) indivisible object of construction in progress - the real estate unit which will be built in the future (the building, construction), concerning which the right to accomplishment of construction works is acquired and which is not accepted in operation provided that as a part of such object there are no future real estate objects. Indivisible objects of construction in progress are subdivided into indivisible residential objects of construction in progress (objects which according to the qualifier belong to residential buildings) and indivisible non-residential objects of construction in progress (objects which according to the qualifier belong to buildings of non-residential and engineering constructions);

8) object of construction in progress - divisible object of construction in progress and indivisible object of construction in progress;

9) divisible object of construction in progress - the real estate unit which will be built in the future (the building, construction), concerning which the right to accomplishment of construction works is acquired and it is not accepted in operation provided that as a part of such object the project documentation on construction provides at least two future real estate objects;

10) special property right on object of construction in progress, future real estate object (further - special property right) - kind of property right on object of construction in progress, future real estate object which consists in:

ownership and the order of such object voluntarily, irrespective of will of other persons if other is not determined by the law, and arises after receipt of the right to accomplishment of construction works, but not earlier than state registration of such right, and stops after acceptance in operation finished by asset construction and state registration of the property right to the respective real estate unit;

the right of person behind which such right is registered, to require the termination of asset construction (including object which component is future real estate object) and its acceptances in operation that acquisition by such person has the investigation the property rights to the real estate unit which corresponds to the technical characteristics of the corresponding object specified in the agreement.

2. Other terms are used in this Law in the values given in the Civil code of Ukraine, the Law of Ukraine "On regulation of town-planning activities" and other legal acts.

Article 2. Turnover ability of object of construction in progress, future real estate object

1. Indivisible object of construction in progress can be in civil circulation only on condition of state registration of the property right or special property right, or encumbrance for benefit of person who paid partially the price of such object in the State register of the corporeal rights to real estate.

2. The sharing object of construction in progress cannot be in civil circulation, except:

1) the transactions connected with change of the customer of construction;

2) encumbrances of property by mortgage according to the Law of Ukraine "About financial and credit mechanisms and property management in case of construction of housing and real estate transactions" and addresses of collection on such subject of mortgage;

3) the encumbrance determined by the paragraph the seventh parts two of article 27-2 of the Law of Ukraine "About state registration of the corporeal rights to real estate and their encumbrances".

Such transactions and/or actions can be made only in case of state registration of special property right on the sharing object of construction in progress in the State register of the corporeal rights to real estate.

3. Future real estate object can be in civil circulation only on condition of state registration of special property right or encumbrance for benefit of person who paid partially the price of such object in the State register of the corporeal rights to real estate.

4. The transaction concerning object of the incomplete construction/future of real estate object made with violation of requirements of this Article is insignificant.

Article 3. Property right to indivisible object of construction in progress

1. Only indivisible object of construction in progress can be object of the property right.

2. The property right to indivisible object of construction in progress arises according to the law from the moment of state registration of such right.

State registration of the property right is performed according to the Law of Ukraine "About state registration of the corporeal rights to real estate and their encumbrances" if the following requirements are at the same time observed:

1) availability at the customer of construction of the right of property/right to use by the parcel of land on which the corresponding object is constructed;

2) the right to accomplishment of construction works is acquired;

3) technical inventory count of indivisible object of construction in progress is carried out.

The requirements determined by Items 1 and 2 of this part do not extend to indivisible objects of construction in progress, privatizeable.

3. State registration of the property right to divisible objects of construction in progress and future real estate objects is not allowed.

Article 4. Special property right

1. Objects of special property right are:

1) indivisible objects of construction in progress;

2) divisible objects of construction in progress;

3) future real estate objects.

2. Guarantees concerning protection of the property right extend to special property right (including removal of obstacles in implementation of special property right; recognition of special property right in case of its non-recognition, violation, contest, recognition of the property right after acceptance in operation of object).

The owner of special property right has the right to take a legal action on protection of the right, including with the requirement relatively:

1) the terminations of asset construction (including object which component is future real estate object) and its acceptances in operation. Adoption by courts of decisions on completion of object concerning which there is no right to accomplishment of construction works owing to its cancellation or cancellation, before recovery of such right is not allowed. In that case the owner of special property right has the right to choose other method of protection of the violated right;

2) recognitions of the property right to object concerning which the special property right is registered, after acceptance in operation finished by asset construction.

3. The special property right arises from the moment of its state registration in the State register of the corporeal rights to real estate.

State registration of special property right is performed according to the Law of Ukraine "About state registration of the corporeal rights to real estate and their encumbrances" after receipt of the right to accomplishment of construction works.

4. Primary state registration of special property right on object of construction in progress is performed by the customer of construction. Primary state registration of special property right on future real estate object is performed by the customer of construction and the developer of the construction according to distribution between them future real estate objects determined by the agreement by the organization and financing of asset construction.

5. State registration of special property right on object of construction in progress concerning which the property right is registered is forbidden.

6. Object of construction in progress, constructed facility of the real estate belongs to person for whom the special property right on such object is registered. Such object can belong to one or several persons (including with determination of shares of each of such persons).

7. Upon transition of special property right to indivisible object of incomplete construction / future real estate object (except the first sale) or the encumbrance of the rights registered for benefit of the buyer who paid partially the price for indivisible object of incomplete construction / future real estate object to the right receiver is at the same time passed by the rights and obligations of the buyer according to the purchase and sale agreement of indivisible object of the incomplete construction/future of real estate object (the first sale) or the contribution agreement in fund of financing of construction. Such right receiver is considered buyer/principal according to the purchase and sale agreement of indivisible object of the incomplete construction/future of real estate object (the first sale) or the contribution agreement in fund of financing of construction.

Article 5. Features of state registration of change of object of construction in progress, real estate unit

1. State registration of change of indivisible object of construction in progress concerning which the special property right is registered on divisible object of construction in progress is allowed under condition:

1) if availability of future real estate objects is provided by the project documentation on construction in the corresponding object;

2) availability of written consent of obremenitel of the corporeal rights to indivisible object of construction in progress, its part - if in the State register of the corporeal rights to real estate there are data on encumbrance of the corporeal rights to indivisible object of construction in progress, its part.

2. State registration of change of indivisible object of construction in progress concerning which the special property right is registered divided into object of construction in progress is performed in the following procedure:

1) state registration of the termination of special property right on indivisible object of construction in progress;

2) state registration of special property right on the sharing object of construction in progress for person behind whom the special property right on indivisible object of construction in progress was registered;

3) state registration of special property right on all future real estate objects which are parts of again divisible object of construction in progress, for person whose special property right on the corresponding indivisible object of construction in progress is stopped / the developer of construction;

4) state registration of encumbrance of the corporeal rights to future real estate objects included in warranty in shares, and divided into object of construction in progress.

3. State registration of change of divisible object of construction in progress concerning which the special property right is registered on indivisible object of construction in progress concerning which the special property right is registered, is allowed provided that as a part of divisible object of construction in progress there are no future real estate objects which are aloof, transferred to direct trust as method of ensuring obligation fulfillment or the corporeal rights on which are encumbered. Such state registration is performed irrespective of availability in the project documentation on construction of data on apartments, indoor parking spaces, other residential or non-residential premises, parking places and so forth.

4. State registration of change of divisible object of construction in progress concerning which the special property right is registered on indivisible object of construction in progress concerning which the special property right is registered, is performed in the following procedure:

1) state registration of the termination:

special property right on divisible object of construction in progress and all future real estate objects which are components of divisible object of construction in progress;

encumbrances of the rights to future real estate objects included in warranty share and on divisible object of construction in progress;

2) state registration of special property right on indivisible object of construction in progress for the owner of special property right divided into object of construction in progress. If the special property right on future real estate objects is registered behind several persons, the share of each of them in indivisible object of construction in progress is determined by the agreement which is subject to the notarial certificate.

5. State registration of change of indivisible object of construction in progress concerning which the special property right is registered on indivisible object of construction in progress concerning which the property right is registered, is allowed under condition:

1) observance of requirements, stipulated in Article 3 presents of the Law;

2) availability of written consent of obremenitel of the corporeal rights to object of construction in progress, its part if in the State register of the corporeal rights to real estate there are data on encumbrance of the corporeal rights to indivisible object of construction in progress, its part.

6. State registration of change of indivisible object of construction in progress concerning which the special property right is registered on indivisible object of construction in progress concerning which the property right is registered, is performed in such procedure:

1) state registration of the termination of special property right on object of construction in progress;

2) state registration of the property right to indivisible object of construction in progress for the owner of special property right on indivisible object of construction in progress.

7. State registration of change of divisible object of construction in progress concerning which the special property right is registered on indivisible object of construction in progress concerning which the property right is registered, is allowed under condition:

1) observance of requirements, stipulated in Article 3 presents of the Law;

2) if as a part of divisible object of construction in progress there are no future real estate objects which are aloof, transferred to direct trust as method of ensuring accomplishment of obligations or the corporeal rights on which are encumbered. Such state registration is performed irrespective of availability in the project documentation on construction of data on apartments, indoor parking spaces, other residential or non-residential premises, parking places and so forth.

8. State registration of change of divisible object of construction in progress concerning which the special property right is registered on indivisible object of construction in progress concerning which the property right is registered, is performed in such procedure:

1) state registration of the termination:

special property right on divisible object of construction in progress and all future real estate objects which are components of divisible object of construction in progress;

encumbrances of the rights to future real estate objects included in warranty share and on divisible object of construction in progress;

2) state registration of the property right to indivisible object of construction in progress for the owner of special property right on divisible object of construction in progress. If the special property right on future real estate objects is registered behind several persons, the share of each of them in indivisible object of construction in progress is determined by the agreement which is subject to the notarial certificate.

9. State registration of change of indivisible object of construction in progress concerning which the property right is registered on the sharing object of construction in progress is allowed under condition:

1) availability of future real estate objects in the corresponding object which is provided by the project documentation on construction;

2) absence in object of construction in progress of components which after acceptance of object in operation are independent real estate units, the corporeal rights to which belong to the third parties;

3) availability of written consent of obremenitel of the corporeal rights to object of construction in progress, its part if in the State register of the corporeal rights to real estate there are data on encumbrance of the corporeal rights to object of construction in progress, its part.

10. State registration of change of indivisible object of construction in progress concerning which the property right is registered on the sharing object of construction in progress is performed in the following procedure:

1) state registration of the termination of the property right to indivisible object of construction in progress;

2) state registration of special property right on divisible object of construction in progress for the previous owner;

3) state registration of special property right on all future real estate objects which are parts of newly created divisible object of construction in progress for person whose property right to the corresponding indivisible object of construction in progress is stopped / the developer of construction;

4) state registration of encumbrance of the corporeal rights to future real estate objects included in warranty share and on the sharing object of construction in progress.

11. State registration of change of the real estate unit (the building, construction) concerning which the property right is registered, on the sharing object of construction in progress is allowed under condition:

1) availability of future real estate objects in the corresponding object which is provided by the project documentation on construction (reconstruction, restoration, capital repairs);

2) absence in the real estate unit of the components which are independent real estate units, the corporeal rights to which belong to the third parties;

3) availability of written consent of obremenitel of the corporeal rights to the real estate unit, its part if in the State register of the corporeal rights to real estate there are data on encumbrance of the corporeal rights to the real estate unit, its part.

12. State registration of change of the real estate unit (the building, construction) concerning which the property right is registered, on the sharing object of construction in progress is performed in the following procedure:

1) state registration of the termination of the property right to the real estate unit;

2) state registration of special property right on divisible object of construction in progress on the previous owner of the real estate unit;

3) state registration of special property right on all future real estate objects which are parts of again divisible object of construction in progress, for person whose property right to the corresponding indivisible object of construction in progress is stopped / the developer of construction;

4) state registration of encumbrance of the corporeal rights to future real estate objects included in warranty share and on divisible object of construction in progress.

13. The state registration provided by this Article is performed according to the Law of Ukraine "About state registration of the corporeal rights to real estate and their encumbrances".

14. Action of provisions of this Article does not extend to buildings, constructions which have the status of monument of cultural heritage or again revealed object of cultural heritage.

Article 6. Features of attraction of money for asset construction of real estate

1. Direct or indirect attraction (investment, financing) by the customer of construction, the developer of construction, the managing director of fund of financing of construction of means from physical persons and legal entities, including in management, for construction of the real estate unit with the subsequent acquisition by such persons of the property right to the respective real estate units can be performed exclusively in such a way:

1) by the conclusion of purchase and sale agreements of indivisible objects of incomplete construction / future real estate objects (share of indivisible object of construction in progress):

the customer of construction who is legal entity or physical person entrepreneur;

the developer of construction who is legal entity;

2) by the conclusion of contribution agreements in fund of financing of construction by the managing director of fund of financing of construction through funds of financing of construction according to this Law taking into account the features determined by the Law of Ukraine "About financial and credit mechanisms and property management in case of construction of housing and real estate transactions";

3) by issue of target corporate bonds which repayment is performed by transfer of object (part of object) of housing construction according to the Law of Ukraine "About the capital markets and the organized goods markets" with condition of transfer of object (part of object) of housing construction according to the signed notarial contract between the customer of construction and the owner of such bonds on reservation (booking) of object (part of object) of housing construction. Requirements concerning the purchase and sale agreement of indivisible object of the incomplete construction/future of real estate object (the first sale), except Item 19 parts two of article 13 of this Law are applied to such agreement.

2. Requirements of part one of this Article do not extend to cases of financing of the constructed objects only at the expense of own, credit or borrowed funds of the customer of construction and/or the developer of construction.

3. Managing directors of funds of real estate transactions can raise funds from physical persons and legal entities, including in management, for construction of real estate units according to the Law of Ukraine "About financial and credit mechanisms and property management in case of construction of housing and real estate transactions".

Article 7. The agreement on the organization and financing of asset construction

1. The customer of construction can sign the contract with the developer of construction concerning the organization and financing of asset construction (including by attraction of financial resources of other physical persons and legal entities).

2. Essential terms of the contract about the organizations and financings of asset construction are:

1) procedure for the organization and financing of asset construction by the developer of construction;

2) the party providing disclosure of information on the sharing object of construction in progress (apartment house) according to this Law;

3) distribution of future real estate objects concerning which primary state registration of special property right, between the customer of construction and the developer of construction will be performed;

4) the list of future real estate objects constituting warranty share, the corporeal rights to which will be encumbered;

5) the term during which the parties shall make changes to the list of future real estate objects determined by Items 3 and 4 of this part in case of change of the project documentation on construction which causes need of such changes;

6) operations procedure of the parties for ensuring completion of object in case of agreement cancelation (transfer to the customer of construction of special property right on future real estate objects which are not aloof; transfer to the customer of construction of the unused funds raised on asset construction according to purchase and sale agreements of future real estate objects (the first sale), and so forth) or losses by the customer of the right to the parcel of land.

If the agreement on the organization and financing of asset construction consists before development of the project documentation at the time of the conclusion of the agreement are not specified the construction, essential terms of the contract determined by Items 3 and 4 of this part. In that case the parties shall make changes to the agreement, having specified such essential conditions, after development and approval in the procedure for the project documentation established by the legislation construction.

3. According to the decision of the customer of construction accomplishment of part of functions of the customer of construction, except powers of the customer of construction concerning acquisition of rights to the name of the rights to accomplishment of preparatory and construction works, acceptance in operation of the finished with construction of facilities and other powers determined by the law can be assigned to the developer of construction. The developer of construction bears the responsibility provided for the customer according to the law for inadequate accomplishment of such functions.

4. The agreement on the organization and financing of asset construction is subject to the notarial certificate.

Article 8. Disclosure of information on divisible object of construction in progress (apartment house)

1. If the asset construction of real estate (apartment house) is performed with attraction of non-state means (direct or mediated) physical persons and legal entities, including in management, for further acquisition by such persons of the property right to the respective real estate units, the customer of construction, the developer of construction (in the presence), the managing director of fund of financing of construction (in the presence) shall post such information on the websites:

1) the construction object identifier (finished with asset construction);

2) the main technical characteristics of divisible object of construction in progress according to the list determined by the Cabinet of Ministers of Ukraine, but in amount not smaller, than it is specified in Single state electronic system in the sphere of construction;

3) information about the customer of construction, developer of construction (in the presence), managing director of fund of financing of construction (in the presence):

a) for the legal entity:

the name of the legal entity including reduced (in the presence);

identification code of the legal entity in the Unified state register of the companies and organizations of Ukraine (for the legal entity - the nonresident - code/number from the trade, bank or judicial register or number of the registration certificate of regional authority of foreign state about registration of the legal entity);

form of business;

information about the head of the legal entity and other persons who can make actions on behalf of the legal entity including sign agreements, file documents for state registration and other (in the presence): surname, name, middle name, data on availability of restrictions concerning representation of the legal entity;

data of rather final beneficial owner (controller) of the customer of construction (developer of construction, managing fund of financing of construction): surname, name, middle name; the name and identification code (for resident) the founder of the legal entity in whom this person is final beneficial owner according to the Unified State Register of Legal Entities, physical persons entrepreneurs and public forming;

location of the legal entity;

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