How to check a developer when buying an apartment

Checking a new development before purchase includes several key indicators of construction legality to pay attention to first:

1. Verification of the land plot for construction.
2. Availability of construction permits.
3. Transparency of the investment mechanism.
4. Whether the construction company has a license to carry out construction work.
5. Obtaining information about all participants in the construction process (developer, general contractor, landowner, financial companies with which you sign a contract).
6. Checking for the presence of protected zones of cultural heritage sites.
7. Checking for possible complications due to the geological characteristics of the site.
8. Checking technical conditions for connecting the future building to all utility systems.

How to determine the reliability of the developer

One of the first questions a potential buyer has is how to check the reliability of the developer and obtain information about them. The simplest and most effective way is to consult publicly available information on the developer’s website or other online resources.

Information can be obtained from the advertising board at the construction site. It must contain information about the document on the basis of which the construction works are carried out, as well as information about the liabilities of the developer and contractor in accordance with Part 6 of Article 34 of the Law of Ukraine “On Regulation of Construction Activities”.

Information about all participants in the construction process should be checked in public registries for:

• when the construction company was registered, the director’s full name, size of the authorized capital, and whether there are tax debts (EGR registry);
• whether there are court disputes involving them (Judicial Register);
• review the materials of court decisions (Register of Court Decisions);
• examine documents confirming land rights, for example, the land lease agreement with the developer (Public Cadastral Map).

What documents the developer should have

For investors allocating a large sum to construction, it is important to study the developer’s documents.

Required list of documents

The developer’s construction permits. This document should specify the construction details for multi-storey complexes – construction address, cadastral number of the land, number of floors, details of all construction participants (developer, general contractor/contractor, landowner, asset management companies with which contracts are concluded).

The developer’s rights to the land plot and its designated use – deed of ownership, lease agreement, agreement on permanent use, or superficies agreement. If the right is absent or disputed in court, you should not invest in such a new development. The designated land use can be checked using public sources such as the Public Cadastral Map of Ukraine, or by requesting it from the developer.

Availability of technical conditions for connection to all utilities in the residential building – gas supply, heat supply, electricity, water supply, sewage. Certainly, without knowledge of technical standards it is difficult to evaluate everything, but it is necessary to ensure these documents exist.

Checking the compliance of urban planning documentation and restrictions regarding the master development plan and zoning. Confirm the project’s name, its permitted height, how many floors have actually been built, and what is allowed to be constructed on the plot. You can find them on the website of the State Architectural Inspectorate of Ukraine.

How to check the legality of a new development

There are four ways to check the legality of a new development:

1. Who is involved in the construction process? Information about the developer’s legal entity, the construction client, the financial company (if involved), the legal form, size of authorized capital, how long it has operated in the real estate construction market, the number of completed and delivered projects — using the Unified State Register of Legal Entities, whether there are unfinished enforcement proceedings, existence of tax debt, and the ultimate beneficiary.
2. Documentation. Check land ownership documents, the form of ownership, whether there is a construction permit, and whether the developer’s construction plan matches the approved plan.
3. How is the project financed? Through investors, the developer’s own assets, investment by a foreign company (trust), or commercial bank loans.
4. Reputation check. The first thing you need to do is find sources about the developer. These can be thematic and investor forums, websites, and media information. Check the “blacklist” of unscrupulous developers compiled by the Confederation of Builders of Ukraine (CSU).

How to check the construction permit and the general contractor’s license

The investor should check construction permits and the general contractor’s license in the Unified Register of Licenses of Ukraine. This information will allow you to verify the presence or absence of a license for the company you plan to cooperate with and invest in. You can find it by specifying its series and number. If such information is not available, you can use the EDRPOU code for legal entities or the taxpayer identification number (TIN) for individual entrepreneurs. In any case, data from the license register is necessary to check counterparties before signing a contract and making the right decision.

How to check the commissioning of the building

Commissioning of a residential building involves obtaining a commissioning certificate (construction category SS2, SS3) or a declaration of readiness (category SS1). After inspection for compliance with all building standards, the commission of the State Architectural Inspectorate (GASI) decides whether to issue the corresponding document. The presence or absence of a certificate can be checked on the GASI of Ukraine website in the construction activity register by entering the customer’s or general contractor’s EDRPOU code and selecting the relevant region.

Read the contract terms carefully before signing the purchase agreement. It should specify:

• subject of the contract,
• date of commissioning,
• whether the price is fixed in the national currency,
• the presence of penalties for delays,
• penalties in case of termination or delays,
• what obligations arise under the contract for the developer and for you.

Pay attention to the apartment’s characteristics in the new building: construction address, section, apartment number, floor, number of rooms.

Study the clauses concerning the rights and obligations of the parties under the contract.