How to deal with developers-crooks?! - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine

How to deal with developers-crooks?! - News about real estate, Kiev, Kyiv region. Real Estate In UkraineRecent Scam with the block again brought to the agenda the vulnerability is simple...Recent Scam with the block again brought to the agenda the simple vulnerability of the Ukrainian Everyman who wants to purchase a house. Equity participation in the construction, as experience shows, is a fairly common form of fraud. Poland expressed its desire to share its experience in dealing with "building" Scam.Poland goes to the rescueDuring the visit of the Ukrainian Minister of construction, architecture and housing and utilities of Paul Kachura in Poland, an agreement was reached with the state Secretary of the Ministry of transport and construction of the Republic of Poland Peter Stystem about conducting in the fall of 2006 on the territory of Ukraine of the Ukrainian-Polish construction forum.The theme of the development of an effective legislative base has acquired a special connotation due to the fact that fraud in the construction industry is a burning issue not only for Ukraine. Acting President of Warsaw mirosЕ‚aw Kochalski noted that the policy of the authorities of Warsaw relative to the protection of citizens from fraud in the construction industry, with whom the poles have faced in the 90-ies, was to inform the public about the dangers of this phenomenon and dissemination of legal advice on entering into contracts.As for the compensation of material damage to the victims, the Polish government took no action, shifting the responsibility for negligence on the investors themselves. Were later introduced the real estate fair - the so-called bidding-submission of apartments for sale, during which Polish citizens more widely, reliable information about construction companies, projects and consulted with lawyers.The speculator the speculator strifeThe real estate market experts distinguish two categories of scams. Some firms create the appearance that they are investors. Entice people by showing the possible co-investors allegedly built their house, and, having collected the required amount, simply disappear - and in the wind. This is fraud in its purest form, for which the organizers should be held criminally responsible. But such cases are rare. A more common phenomenon today is that the real participants in the construction business, which remain formally within the law, and to bring charges against them very difficult.In the second case, citizens as co-investors are involved for a very simple scheme: the company acquires the right to build a house and concludes with the co-investors of the Treaty which are not given the time construction is completed, provided no liability to the company for breach of contract. Thus, firms accumulate huge funds of depositors, "scroll" them and gain huge profits. And the depositor at best, after some time, return the money, only excluding inflation.Russia has already adopted the lawIt is no secret that such cases may happen again. This is understandable, because the activities of construction companies is not regulated at the legislative level. The number of enterprises in this sphere increases enviable pace, and the lack of "reliable" information about the developers forcing the layman to believe the beautiful commercials and "swallow the bait". In addition to Poland, to Ukraine can also be useful from the experience of neighbouring Russia, which in the post-Soviet space are faced with similar problems.At the end of last year, Russia adopted the Law "On participation in shared construction of apartment buildings and other real estate objects". It creates a legal framework to protect the interests of the citizens against the actions of financial pyramids, as well as from unscrupulous investors. Unfortunately, it only applies to companies, permission for construction of projects which are obtained after its entry into force (1 April 2005).Of particular interest are the actions of the municipal authorities of Moscow are currently working on creating a so-called "Registry of business reputation of partners of the government of Moscow". It will help the layman to navigate in the sea of construction firms and to distinguish honest from dishonest developers. In the Registry will accumulate objective information about the activities of the organization: how many years is on the market for a certain firm that built and where, it always fulfils the obligations.Better safe than sorryLaws are laws, but the attentive investor is also able to avoid the scams, if you will be performing the elementary rules of precaution. First, when a contract co-investment the first thing that should be alerted - the cost of future housing. In particular, you would be puzzling if the price obviously lower than the price in the market.In addition, suspicious is the reluctance of firms to give you the contract home to study, the lack of precise timing of completion of construction, the liability of the company in case of breach of contractual obligations.It is also necessary to check the presence of a construction company Charter documents (where registered, type of activity). Mandatory administrative documents on the basis of which the construction is performed. All these documents are open and on demand they should provide you. All the issues of co-investment should be agreed upon in writing in the contract.



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