By KYIV. Dec 2 (Interfax-Ukraine) – The start of new residential construction in Ukraine has been frozen due to the inability to enter data on the guaranteed share of projects in the State Register of Property Rights, the press service of the Finance and Investment Management Association (FIMA) told Interfax-Ukraine.
Reportedly, FIMA turned to MPs and public authorities for clarification on how to work in the absence of changes in the State Register of Property Rights, in which it should have been possible to fix the guarantee share in accordance with law No. 2518 "On guaranteeing real rights to property facilities to be built" in the future of October 10.
"Given the huge destruction caused by Russia’s armed aggression against Ukraine, housing construction is a top priority today, and in some regions of Ukraine, developers are ready, but cannot start building, due to the fact that starting from October 10, 2022, to start construction and finance it all participants in the process (customers, developers and financial institutions that raise funds to finance construction) must comply with the provisions of law No. 2518, namely: to start construction and finance it, information about the future construction object and a certain guarantee share must be entered into the State Register of Property Rights," according to the text of the FIMA appeal.
However, according to the information of public registrars, it is currently impossible to carry out registration actions regarding a special property right to an object of construction in progress, a future property object, encumbrances of such a right, since the State Register of Property Rights has not been brought into line with the changes provided for by this law.
Considering that any slowdown in construction and long-term expectations regarding the start of the registry operation are unacceptable in the current situation, FIMA asks for clarification on how, without violating the provisions of the law, it is possible to start housing construction and finance housing construction.
At the same time, in order to avoid violation of the requirements of the legislation by the participants in the construction process, FIMA proposes to amend law No. 2518 in accordance with the requirements established by this law, state registration of a special property right to an object of construction in progress, a future real estate object, encumbrances of such a right is not carried out.
It is also proposed to oblige construction customers, construction developers, managers of the construction financing fund after the State Register begins to function, to carry out state registration of a special property right to an object of construction in progress, a future property object, encumbrances of such a right within three months.
