Relations Refinement Registration with the Builder. Part IV

Relations Refinement Registration with the Builder. Part IV

04.10.2016 Analytics

Closing a topic of legal relations registration niceties with the builder, we have approached to the last which  LDaily so-called as a”scheme” of investment attraction. It is apartment purchase through securities.

This method deserves a special attention because it is simple, reliable and becomes more and more popular. Therefore builders practice the conclusion thicket and more often with the investor of forward contracts (they are securities),thus, arranging, the involved investments.

So: what are forward contracts? What risks / benefits for the investor  do involve such agreements?

First of all, we speak about the concept of “forward contract”. It is one of the derivatives types. It is the agreement according to which the builder undertakes to give  a real estate object to the investor. The investor undertakes to pay such object and to accept it.

Actually, the legislator imposes the same requirements to content as well as to the provisional agreement of purchase and sale to the forward contract.  You could read in details about provisional agreements of purchase and sale here:

Is there a difference

The forward contract differs from the purchase and sale provisional agreement only in a conclusion order. The contract is signed at commodity exchange and respectively is registered in the same place.

In practice builders sign 2 contracts with the investor:

  • forward contract;
  • purchase and sale agreement for property rights.

Thus, the builder divides the total amount of an acquired real estate object (which will be created in the future) into 2 agreements. The investor   pays 50%according to the forward contract and other 50% according to the purchase and sale agreement for property rights.

Benefits of the forward contract

The forward contract gives to the investor certain guarantees:

  • minimization of the builder possibility to sign several contracts with different persons for the same construction object;
  • risk minimization in a case of project payment cost of the real estate as payment by instalments.

About risks

Of course, the conclusion of the forward contract won’t be able to secure you for all 100%. A lot of things depend on conscientiousness of the builder, on the  presence of all construction documentation and many other conditions which LDaily has already informed the readers.

Therefore, summing up the results after consideration of all popular mechanisms of relations registration of the builder-investor which were stated in the previous articles, the  potential investors want to give the following very important advice:

  • check “history” of the builder;
  • check documents for the land under an expected construction;
  • check the technical documentation for a construction object;
  • read documents based on which you will purchase the real estate, regarding the hidden risks and obligations of the investor to make additional payments for benefit of the builder;
  • check availability of allowing documents;
  • be not afraid to ask lawyers for the help as the cost of legal services in an audit of an object costs much less than the cost of investments.

Other articles

Read also

Relations Refinement Registration with the Builder. Part IV
News

The former owner of Delta Bank suspected of evasion of 33 million UAH of taxes

Office of the Attorney General suspects the former owner of Delta Bank, Mykola Lahun, of tax evasion in the amount of 33 million hryvnias. According to the investigation, in February 2015, the former owner of Delta Bank JSC received more than 153 million hryvnias as payment for the purchase of registered shares of the bank […]

Next
Relations Refinement Registration with the Builder. Part IV
Analytics News

The instruction for the investor if the builder doesn’t fulfil the liability

Considering features of construction business of Ukraine, investors often come up against a situation when the builder isn’t able to fulfil properly the liabilities – whether it be a delay of the termination of a construction or “frost” of an object. As a rule, the majority of cases with liabilities execution suspension by the builder […]

Next
Relations Refinement Registration with the Builder. Part IV
News

Bezos is no longer the richest man in the world: the owner of LVMH overtook him

LVMH CEO Bernard Arnault topped the list of the world’s richest people with a fortune of $ 186.3 billion, surpassing Amazon founder Jeff Bezos by $ 300 million. This was reported by Forbes. The top three also included Tesla and Space X chairman Elon Musk ($ 147.3 billion). According to the publication, Arno’s wealth increased […]

Next
Relations Refinement Registration with the Builder. Part IV
News

The AMCU fined 4 dairy enterprises in Khmelnytskyi

Khmelnytskyi regional territorial office of the Antimonopoly Committee of Ukraine  has fined the privately-operated enterprise “Prometey consulting firm” in the name of the branch “Slavutskyi Butter Plant”, “Ryhalsky factory of the  desiccated milk ” LLC,  “Bimol” LLC, “Biscuit-Milk” LLC for 36.828 thousand UAH for anticompetitive concerted actions in the milk procurement market for industrial processing.  The Regional territorial office  found […]

Next
Relations Refinement Registration with the Builder. Part IV
News

State environmental inspectorate of Ukraine complained about non-admission to Akhmetov’s DTEK

Last year, DTEK’s largest energy holding company of Rinat Akhmetov did not allow representatives of the State Inspecyorate to inspect dozens of times last year, while some indicators of TPP are several times higher than normal. The chairman of inspection Andrey Malovany told about it in interview for Oilpoint. According to him, now, according to […]

Next
Relations Refinement Registration with the Builder. Part IV
News

Ukraine’s economic downturn has slowed sharply

The downturn in Ukraine’s economy in the first four months of 2021 slowed to 0.2%, according to a preliminary estimate by the Ministry of Economy. “The Ministry of Economy estimates a slight reduction in GDP at 0.2% (down 2% in the first quarter of 2021 by 4.9% over the four months of 2020),” the statement […]

Next
Relations Refinement Registration with the Builder. Part IV
News

Big business has increased budget allocations

Ukrainian large taxpayers transferred UAH 362.3 billion in tax payments to the state budget in January-November 2020. According to the press service of the Office of Large Taxpayers of the State Tax Service, this is 11% more than in the same period last year. The share of tax payments from large businesses served by the […]

Next
Relations Refinement Registration with the Builder. Part IV
News

Prosecutor General considers the case of historical Howard Theatre debts in Washington, DC

 Historic Howard Theatre, which is located in northwest Washington (DC), owed the government more than $ 260,000 over unpaid taxes. Several years ago, the theater had a reconstruction, which cost the sum of $ 29 million. After the reconstruction of the theater, it was opened to the public in 2012. Officials say that the theater […]

Next
Relations Refinement Registration with the Builder. Part IV
News

PIFs brought a million dollars to the budget for the year

Currently, there are almost 2 million entrepreneurs in Ukraine, and each of them pays an average of 13 thousand hryvnias a year. Thereby, in 2019, the turnover of the PIF`s economy amounted to 1 million dollars. “Over the past eight years, revenue from private individuals to the budget have increased by 24 times. In the […]

Next
Relations Refinement Registration with the Builder. Part IV
News

MEDT told how to attract $ 5 billion in investments

Ukraine plans to attract $ 5 billion in investments this year. Deputy Minister of Economic Development Iryna Novikova stated this at the Ukraine 30 business forum. The Ministry of Economy believes that this amount of investment will be able to attract thanks to concessions, support for large investment projects and industrial parks. Thus, Novikova noted […]

Next
Relations Refinement Registration with the Builder. Part IV
News

Ukrainian tutor search service Preply enters the Brazilian market

Internet service Preply, that was designed for searching of local and online tutors, announced the release to the Brazilian market. For this purpose, the company made a localization to Portuguese, implemented the accepting of payments in reais, and hired a Brazilian student Lucia in Kiev office. Her responsibilities will include support for tutors in the […]

Next
Relations Refinement Registration with the Builder. Part IV
News

The court barred Uber and Lyft from classifying drivers as contractors in California

Uber has already tried to give drivers more autonomy so that they are considered contractors rather than employees. A California court has issued a preliminary order ordering Uber and Lyft to immediately retrain drivers from contractors to company employees. The order will take effect in 10 days. As independent contractors, Uber and Lyft drivers do […]

Next
Relations Refinement Registration with the Builder. Part IV
News

McDonald’s will start selling alternative meat

McDonald’s will start producing vegan chops for burgers next year. This was reported by CNBC with reference to the company’s president Jan Borden. According to him, McDonald’s will independently produce vegan chops for its burgers. While we are talking about beef substitutes, but in the future in the restaurants may appear vegan “chicken”. “Vegetarian chops […]

Next
Relations Refinement Registration with the Builder. Part IV
News

The price of bitcoin exceeded the mark of $ 18 thousand

The value of bitcoin for the first time since December 2017 exceeded the mark of $ 18 thousand. The cryptocurrency rate reached $ 18,174. For the first time since December 2017, the bitcoin exchange rate exceeded 18,000. This is evidenced by data from the electronic cryptocurrency exchange Coindesk and the portal CoinMarketCap. So, on the […]

Next
Relations Refinement Registration with the Builder. Part IV
News

LDaily became a media partner of the “Keep It Up!” project in the Tsekh Gallery

On October 20, the Kyiv Art Gallery Tsekh hosted a presentation of the «Keep It Up!» project created by the artist and sculptor Yevgeny Petrov. The LDaily Business Edition became a media partner of this wonderful project, which highlights the theme of sport. The exhibition is currently open to the public and will be exhibited in the gallery until […]

Next
Relations Refinement Registration with the Builder. Part IV
Analytics

Real Estate Market: Slow Growth

In general, over the past 2 years, the real estate market has shown positive dynamics in almost all segments, especially since the situation has equaled both in the capital and in the regions. Let’s consider more different segments. THE RESULTS OF THE 4TH QUARTER OF 2017 AT THE OFFICE REAL ESTATE MARKET IN KIEV The […]

Next
WP2Social Auto Publish Powered By : XYZScripts.com