April 11, 2016
Rostyslav Melnyk, President of RIEL Corporation, commented on Forbes Ukraine on the most pressing topic in the field of real estate: how to protect the primary market from "ghost" developers.
In fact, the only tool that can somehow protect the investor is the Construction Financing Fund (CFF)." The manager of the BSF carries out independent control and evaluation of all documents related to the construction of the facility, documents for the land, the construction project that has passed the examination, building permits. In addition, the head of the fund receives as collateral property rights for the construction of the facility, and controls the construction and targeted use of funds," - said Rostyslav Melnik, president of RIEL Corporation.
"In the event that the developer violates the terms of the construction contract (non-compliance with deadlines, deviations from the project, etc.), the manager may, using the right of mortgage, take the object from the developer and transfer to another developer for completion. This process is legally prescribed, and there are cases of such transfer. And in case of bankruptcy of a construction company, the entire unfinished object is transferred to the manager of the BSE (bank or financial company) outside the liquidation procedure, as it is in a mortgage” Rostyslav Melnyk emphasizes.
Developers and experts believe that without increasing the requirements of the market situation can not be leveled. According to Rostyslav Melnyk, the state and local authorities should have more control over the process of obtaining permits and the compliance of construction with project documentation. "Otherwise, unreliable developers will always want to simplify the object by reducing the cost of structural elements and the deterioration of consumer properties of apartments," - said the head of RIEL.
