Legal review of the Pioneer Quarter 2 residential complex by «Доброград» (LLC «Гранд-Чабани»)

Characteristics of the residential complex

• Class – Comfort
• Buildings – 1
• Number of floors – 10
• Technology – monolithic frame
• Heating – individual (in the apartment)
• Walls – aerated concrete blocks
• Insulation – mineral wool
• Ceiling height – 2.7 m (from floor to ceiling)
• Parking – parking lot

Developer «Доброград» (LLC «Гранд-Чабани»)

In promotional materials you will find information about the Dobrograd group of companies. From a legal point of view the Developer is LLC “Grand-Chabany”, but despite the fact that it has a building permit, I have a question. The building is being constructed with 10 floors, while the permit was issued for a 9-storey building. For the building to be commissioned later, it must be built exactly as authorized, but most likely the first floor of this building is considered a basement floor. Whether the basement floor is counted in the total number of floors depends on the level of the top of that basement slab. Such information is not publicly available, so I strongly recommend clarifying this point with the sales department before investing.

Infrastructure of Chabany

Pioneer Quarter 2 is being built in the Kyiv-Sviatoshynskyi district, the town of Chabany. The nearest metro station is Teremky, and it’s a 10-minute drive to Kyiv via the Odesa highway. I did not observe a major problem with traffic jams there, but it should be understood that active construction is currently taking place along the Odesa highway and the load on the road will only increase.

Considering that this is a suburb, the infrastructure is relatively good. Within 1 km there is Nova Poshta, Fora, a bank and a kindergarten, as well as a Megamarket (one and a half kilometers), which will meet many infrastructure needs. The complex itself is being built in the shape of a large letter P and the stylobate that connects the two parts of the building is being built for commercial use.

I would recommend that families with children think about schools in advance, because there are not many in the area and you will most likely have to choose between a local private school or a Kyiv school.

Land for the Pioneer Quarter 2 residential complex

The land is privately owned and the Developer has an agreement with this landowner for the development of the land plot. This is a perfectly legal scheme. I checked the land’s designated purpose, and it is in order – “for the construction and maintenance of a multi-apartment residential building”.

Investment scheme

When buying an apartment in Pioneer Quarter you will need to sign 2 contracts. The first is a derivative, which you sign with the company “Rubicon Invest”. That is, you buy from this company the right to go to the Developer and purchase the apartment from them.

The second – a purchase and sale agreement – you sign directly with the Developer – the company “Grand-Chabany”. The scheme with a derivative is quite common; it has both advantages and fairly serious disadvantages.

The second – a purchase and sale agreement – you sign directly with the Developer – the company “Grand-Chabany”.

The contract with the Developer specifies the commissioning date as Q4 2020. But this term can be extended by no more than 4 months.

I want to draw attention to the key points:

1. If before you register the apartment in your name you decide to resell it to someone, you will need to obtain the Developer’s consent and pay them 4% of the apartment’s price.
2. If you purchase the apartment in installments, you must closely monitor the payment deadlines. Because the contract provides for quite high fines and interest for late payment, and in case of payment delays of more than 30 days, the Developer may even terminate the contract with you.

All contracts must be studied independently, or you can order our full legal audit of the residential complex, in which we will discuss every contentious point with you in detail.

Наталья Чацкис
Senior lawyer of the litigation department

Pioneer Quarter 2 — problems that can be avoided.

Orlov FilippManaging Partner

• Unfinished construction. In Kyiv alone there are 70 unfinished projects. 18,000 apartments whose owners never received keys.
• Long-term projects (delayed construction). In Kyiv there are 8 well-known long-term projects that have been under construction for more than 12 years.
• Completed project not matching the promised one. This is when the developer said one thing, but it turned out differently. You expected to see a luxurious children’s playground, but in reality there are three swings. The visualizations showed a green yard with mature trees and shrubs, but in reality it’s all asphalt, with dug-up patches of earth around the perimeter and some shoots instead of lush crowns. They promised a car-free yard, but ended up with parking at the entrance. The pictures showed a beautiful lobby and corridors with finishing, but instead there are monotonous Soviet-style entryways. There are many such examples.

“Remember! Neither the realtor, nor the bank, and especially not the sales department will fully investigate all the problems with Pioneer Quarter 2, because for them the main thing is to close the deal and get their profit. Checking a new building and investment is your personal responsibility. Study all the documents, check all aspects yourself. If you want to reduce risks to zero, order a full check and we will do everything for you.”