Most Common Violations
There is a set of problems facing Ukrainian real estate market today. “The first problem is that many buildings haven’t been finished. The second one is that we don’t have any effective control over construction activities,” Oleksandr Bosenko, a lawyer at the Union of Investors Protection told.
Vladyslav Kysil lists a range of possible violations developers can have: “They simplify the complexity of a project or they divide a project into several projects and each of them is considered as a simple project, even though it is one big project”. He explains that the bigger project would be, the more documents and expertises it needs. Every huge project have to be carefully analysed and only after a decision by the empowered state authority a company may start construction works.
And this is where the real problem lies. Vladyslav Kysil stipulates that state authorities do not fulfill their obligations. For example, all the licensing activities in Ukraine is done by the State Architectural and Construction Inspection. Its obligations also include verifying real estate projects, approve or disapprove them, monitor their implementation etc. On the contrary, Kysil says that it only grants licenses without even checking those projects. As a result, many of them are built with violations.
“This Inspection does not fulfill its function of urban construction police. It only receives money from the developers,” Kysil said, noting that this is a corrupt institution.
The Inspection refused to comment on this issue.
According to him, many cases of abandoned buildings could be prevented, if this Inspection performed its duties, namely functioned as a construction urban police. “This would reduce the number of illegal buildings to the minimum,” he presumes.
The Main Architect in Kyiv Oleksandr Svystunov acknowledges the problem. He confirms that such companies as UkoGroup developed its projects without documents or with only some documents. At the same time he thinks that fighting them is not an easy task.
“They are arrogant people, who don’t obey the law and believe that this can last forever. They make money selling apartments in buildings without proper documents. It is very difficult to fight, but possible,” he says.
Some development companies like UkoGroup violate the general plan of the city. They can build a house in an industrial area or in a place where a park was planned. This worsens situation, because either a city has to change a general plan or a building must be demolished.