Legal Support for Real Estate Transactions

Contracts related to real estate typically contain complex legal provisions and entail significant financial obligations. Therefore, when entering into such an agreement, it is crucial to have a reliable partner who guarantees complete legal security.

Legal support for real estate transactions ensures not only compliance with the law but also helps minimize risks, detect hidden problems, and protect your interests at all stages. The Dominion Law Firm offers professional support for real estate transactions to make the process of buying, selling, or renting property as safe, transparent, and comprehensible as possible.

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Legal Support for Real Estate Transactions on the Primary Market

The key complexity in concluding a deal for the purchase of a property on the primary market lies in the fact that there are a considerable number of possible transaction formats.

In particular, developers seeking to attract investors’ funds may propose signing:

• investment contracts;
• forward contracts;
• purchase and sale agreements for property rights;
• purchase and sale agreements for securities;
• preliminary purchase and sale agreements;
• agreements for partial (equity) participation in construction;
• agreements on participation in a construction financing fund, etc.

It is worth noting that on October 10, 2022, Ukraine’s Law “On Guaranteeing Property Rights to Real Estate Objects to Be Constructed in the Future” came into effect. This law largely regulates how private investors’ funds are attracted for construction financing. In particular, it clearly defines the types of transactions through which developers may sell future real estate objects.

However, the requirement to conclude only the transactions defined by this law applies to projects whose construction began after October 10, 2022. Currently, a significant number of developments are being constructed based on permits received before the aforementioned law came into force. Consequently, in the new-build market, alongside purchase and sale agreements for future real estate objects, other schemes for attracting investor funds will continue to exist for quite some time.

Even experienced attorneys who lack practical expertise in supporting new-build real estate transactions often do not know the key differences among the various types of contracts and are unaware of what to focus on when signing them. Without high-quality expertise and practical experience in real estate, it is impossible to determine which provisions of a contract may pose a serious risk to the investor.

Therefore, to be confident that the contract offered to you by the developer complies with legal requirements and that you clearly understand your obligations under it, we recommend enlisting the help of an attorney to support your real estate transaction.

What You Should Pay Attention to When Signing a Contract for Purchasing Property in a New-Build

1. Seller’s Authority
   Before concluding a contract, make sure that the seller of the future real estate (property rights) has sufficient authority to conduct such a sale. Often, the party commissioning the construction is one entity, while the seller of the property rights is another. In this case, it is crucial to ensure that the contract is concluded with the actual holder of the property rights. To verify this, check the agreements between construction participants and the protocols for allocating floor space. If the contract is signed by a company director, verify their authority in the relevant register. If a representative is acting under a power of attorney, be sure to review the original of that document.
2. Essential Contract Terms
   Before signing, carefully review whether the object’s characteristics are correctly stated: area, number of rooms, floor, section or building number, etc. Check the object’s price and the payment procedure (including the payment schedule) to ensure they match your prior agreements. Also, make sure the contract specifies the deadlines for completing construction and transferring the property to the investor. If the terms do not match your expectations or prior agreements, insist on making corrections so that the contract accurately reflects all agreed-upon conditions.
3. Parties’ Obligations and Liability
   Pay particular attention to the contract section detailing the parties’ obligations. The developer must guarantee completion of the construction within the agreed timeframe, commissioning of the building, and delivery of the property to the investor in good condition. The investor, in turn, must pay the cost of the property rights on time and in full. Be sure to review penalty provisions: developers typically charge a daily penalty for late payment, and a long delay may be grounds for terminating the contract. The contract should also include penalties for the developer if the construction deadlines are not met, and the buyer must have the right to terminate the contract if necessary.
4. Procedure for Registering Ownership
   Make sure the contract contains clear provisions regarding the transfer of ownership after construction is completed. The contract should specify a list of documents the developer is obligated to provide to register your ownership in the state register. In some cases, additional agreements may be required to complete the ownership registration, which must also be clearly stated in the contract.

Thus, a real estate purchase contract on the primary market is the key document guaranteeing your right to acquire the desired square footage in the future. Enlisting an experienced real estate attorney to support the transaction is a necessary step to ensure the deal is lawful and to protect your interests at every stage.

Legal Support for Acquiring Real Estate on the Secondary Market

Buying real estate on the secondary market is accomplished by concluding and notarizing a purchase and sale agreement between the Buyer and the Seller. Simultaneously, when signing the contract, the ownership right to the property is registered for the new owner at the state registry.

At first glance, the notarization of the agreement gives a sense of confidence and security—and to some extent, this is indeed the case. After visiting the notary, the buyer becomes the official owner of the property, and the acquisition process is effectively complete.

However, a deal on the secondary market has many hidden risks that require careful analysis. It is crucial to adhere to all legal formalities when signing the agreement to avoid potential legal complications and protect your rights.

What to Look Out for When Concluding a Deal to Acquire a Property on the Secondary Market

1. Property Inspection
   Before finalizing the transaction, it is important to conduct a thorough inspection of the property. For more details on how to check a property, see the section “Real Estate Due Diligence.” On the day of the transaction, make sure to obtain up-to-date information about the property from the State Register of Property Rights to Real Estate to confirm there are no mortgages, prohibitions, or other encumbrances. You should also verify the owner’s information using the relevant registers. If you are buying a residential unit, ensure there are no registered residents. This can be done by obtaining an extract from the Territorial Community Register.
2. Seller’s Authority
   You must examine the original title documents for the property, as well as confirm the authenticity of the seller’s passport using the electronic services of the State Migration Service. If the property was acquired by the seller while married, you need to obtain a notarized consent from the spouse for its sale. If the transaction is carried out through a representative, carefully check the power of attorney authorizing the sale and the representative’s documents.
3. Essential Contract Terms
   Carefully read the text of the contract, paying special attention to the accuracy of the seller’s and buyer’s information, as well as the property’s specifications and address. Check whether the price stated in the contract corresponds to your prior agreement. Additionally, the contract should clearly specify when the buyer will take possession of the apartment. Watch out for any special conditions, for example, if the parties agree that the seller has the right to occupy the apartment for a certain period after the transaction is concluded.
4. Payment Confirmation
   As noted above, the contract must state the actual market value of the property. Furthermore, it must clearly regulate the payment procedure. We recommend adhering to Ukrainian legal requirements and making payment for the property via non-cash methods. This ensures you have a payment document that serves as proof you have fulfilled your financial obligations under the contract.
5. Ownership Registration and Documentation
   After signing the purchase and sale agreement and making the required payment, the buyer’s ownership right is registered in the name of the new owner at the state registry. From that moment, the buyer becomes the owner of the real estate object. Confirmation of registration is provided by an extract from the State Register of Property Rights to Real Estate. In this extract, verify the accuracy of the new owner’s details, the contract references, and the property characteristics.

Once the transaction is completed, the notary hands over the original purchase and sale agreement and the extract from the State Register of Property Rights to the new owner. The previous owner is also obliged to provide the original technical passport and the keys.

Hence, conducting a transaction on the secondary market requires mandatory legal support. Failure to comply with legislative requirements during the process of purchasing real estate may jeopardize the validity of the deal.

For instance, the absence of a spouse’s consent for the sale or a power of attorney lacking sufficient authority for the representative can be grounds for declaring the contract invalid.

Moreover, during the agreement process, disputable issues may arise that need urgent resolution. Having an attorney acting in your best interests ensures your rights will not be violated and that the transaction’s objectives will be met.

Legal support for real estate transactions is an integral part of a safe property purchase. Qualified attorneys will safeguard your rights at every stage of the transaction.

Do not risk your investments — choose legal support from experienced professionals!

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