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Legal aspects of buying Ukraine apartments on the secondary real estate market

In this article we want to consider the legal aspects of buying apartments in the secondary market in Ukraine from the buyer’s point of view. What needs to be addressed about the features and risks that can be posed to the buyer? Let’s try to answer these questions.

What you need to know if you decide to buy Ukraine apartments
on the secondary real estate market

When foreigners buying property in Ukraine there almost same rules as for Ukrainian citizens, however with some exceptions and extra conditions. However, recently it was establised that investment in property for sale gives foreigners a special ground for opening short term visa to Ukraine on this basis.

So, the apartment is purchased by entering into a sales contract with the seller in writing and certified by a notary. Ownership of apartment is registered by notary at the new owner in the State Register of Real Property Rights.

Investment in Ukraine via buying real estate is one of the most popular options

As a rule, the conclusion of the main contract of sale is preceded by the conclusion of a preliminary agreement , as well, in order to confirm the seriousness of intentions regarding the purchase of apartment, a potential buyer provides the seller with a certain amount of money (the so-called “deposit”, which in fact is not a deposit in the meaning of Article 570 of the Civil Code of Ukraine). The fact of the transfer of such funds must necessarily be recorded in writing. As a general rule, this is done in the previous agreement, which specifies the amount of funds transferred and the reason for their transfer. Otherwise, in case of not signing the main contract, you will not be able to return the transferred funds, because you will not be able to bring them to the seller – acceptable proof in this case will be only in written document.

However, before entering into a preliminary contract, to transfer funds to the account of pre-payment, and even more – to conclude a contract of sale, the apartment must be checked for its shortcomings not only technical, but also legal nature.

Before buying real estate in Ukraine it is necessary to do complex check of real estate

It is better to start the verification from the identity of the seller, verifying that the person is the real owner. Such verification is carried out through familiarization with the seller’s personal documents, legal documents for the apartment, and verification of the existence of a record in the State Register of real rights (it should be borne in mind that such record will not be in case if the ownership of the apartment was acquired before 2010 and was not subsequently registered with the Real Property Property Rights Register (which existed before 01.01.2013) and / or in the State Register of Real Property Rights (effective from 01.01.2013 to date).

Next, it is necessary to verify the basis for the acquisition of ownership of the apartment by the seller and the history of ownership transfer to the previous owners. Such information should also be included in the State Register of Real Estate Rights.

If the apartment used to be resold many times in the past, and especially few contracts for the alienation of the apartment were committed a short time, we recommend that you be especially vigilant in purchasing such apartment or at all abandoning its purchase.

To be vigilant and to be very attentive also in case if on behalf of the seller the representative acts on power of attorney; the seller makes duplicate rights-based documents; the price of the apartment is lower than that of the market.

Also, it is necessary to check that the right to own the apartment is not encumbered, that is, there is no prohibition on its alienation (mortgage, arrest, etc.).

The seller must request a certificate of absence of debt for utilities. Such reference is provided by the balance holder of the house or directly by the utility services, depending on who has an agreement on the provision of housing and communal services.

It is advisable to communicate with the management of the balance-holders of the building in which the apartment is located, with neighbors, whether they do not know about it any useful information for you about the apartment, such as the existence of court disputes, criminal proceedings in which the apartment appears, etc.

Before concluding the contract, it is necessary to check that all persons who were registered in the apartment were removed from the registration until the moment of its conclusion.

If, for some reason, the owner of the apartment (we note the owner, and not other registered persons) did not quit registration of the place of residence until the conclusion of the contract, such owner’s obligation should be provided for in the contract of sale, with the definition of the appropriate term for the performance of such an obligation ” bunch. If the owner subsequently fails to fulfill such duty, the new owner of the apartment will be able to remove the previous owner from the registration without seeking a court by filing the relevant application with the registration authority with the submission of the relevant apartment purchase agreement.

It should also check the relevance of the technical characteristics of the apartment.

If the apartment was purchased during the marriage period of the seller and is the joint matrimonial property of the spouses, the other spouse must give consent to the transaction of sale of the apartment.

Finally, the draft contract of sale should be properly analyzed, especially if it is scalded by notary, proposed by the seller.

It should be borne in mind that in case of recognition, for some reason, the contract of sale of the apartment concluded by you is invalid, the restitution takes place, that is, the return to the initial state – you return the apartment, and the seller returns the money to you, therefore we advise you to disagree with the understatement of the contract price apartments or make an alleged gift transaction, in which case you will be able to return only the amount provided for in the contract.