The construction company "Intergal-Bud" and the "Globus" bank have launched a pilot project aimed at transitioning current construction projects of the developer into the format of future real estate objects (MON) and incorporating them into the relevant registry, as reported by the company's press service.
"As a leader in the real estate market, our company supports constructive changes in legislation aimed at enhancing buyer trust and preventing fraud in the new build market. We strive to ensure maximum transparency in our operations and offer investors reliable mechanisms for raising funds. We hope this initiative will gain support in the market, and soon most construction projects will be implemented using the new investment mechanism," quoted Anna Laevskaya, Commercial Director of "Intergal-Bud," in the press release.
According to the announcement, projects that received construction rights before the enactment of Law No. 2518 on the protection of investors' rights in real estate have been transitioned to the new format.
The law guarantees buyers property rights to an apartment in a building registered as MON, which significantly reduces risks for both the buyer-investor and the bank during the mortgage lending process, believes Elena Dmitrieva, First Deputy Chairman of the Board of "Globus" bank.
"The practical implementation of the law 'On Guaranteeing Property Rights to Real Estate Objects That Will Be Constructed in the Future' can fundamentally change the mortgage landscape in Ukrainian realities. We expect that the share of mortgage loans will grow, and our bank, which has long been a leader in mortgage development, will do everything possible to support this," she stated.
As reported, the law "On Guaranteeing Rights to Real Estate Objects" (No. 2518-IX), which will be constructed in the future from August 15, 2022, came into effect on October 10, 2022. According to this law, a future real estate object can only be in civil circulation following the state registration of a special property right or encumbrance in favor of a person who has partially paid the price of such an object in the State Register of Property Rights to Real Estate. Moreover, the document requires the construction customer to specify the list of future real estate objects that will constitute the guarantee share during the initial state registration.