Construction and Real Estate

Real estate and construction are among the most capital-intensive and heavily regulated areas of business. Changes in urban planning legislation, risks of acquiring defective assets, refusals to issue permits, or prolonged disputes with contractors can stop a project at any stage and cause major financial losses.

KAVCHUK & PARTNERS Law Office provides comprehensive turnkey support for construction projects and legal protection for real estate transactions. We help developers, investors and business owners minimise risks, protect capital investments and successfully commission completed properties.

Stages and components of our service

Our approach covers the full life cycle of a real estate asset — from due diligence of the land plot to final registration of title to completed construction and protection of rights and interests in court.

1. Legal Due Diligence of real estate and land

• Title review: we thoroughly analyse the history of title to real estate or a land plot and identify hidden encumbrances, pledges, arrests or third-party claims.
• Urban-planning risk analysis: we verify the designated purpose of the land, the property’s compliance with the city’s master plan and zoning, and applicable restrictions such as protected zones or historic areas.
• Expert report: before an acquisition or design stage begins, we provide a detailed report assessing all legal risks.

2. Support for development and construction projects

• Obtaining permits: we assist with all procedures before the State Inspectorate of Architecture and Urban Planning of Ukraine (DIAM), from obtaining urban planning conditions and restrictions to permits for construction works.
• Drafting construction contracts: we prepare robust general contractor, design, technical supervision and architectural supervision agreements, including contracts based on international FIDIC standards.
• Commissioning: we support certification of completed properties, registration of declarations and preparation of technical passports.

3. Structuring investments and transition to the Future Real Estate Object (FREO) model (For developers)

• Designing financial and legal models: we develop lawful capital-raising structures with regard to Law No. 2518-IX. We integrate corporate investment funds/collective investment institutions, target bonds and forward contracts as elements of internal tax optimisation, including reduction of VAT and corporate income tax burden by 15–20% as described in the service model.
• Digitisation and registration of properties in the Unified State Electronic System in the Construction Sector: we support developers when submitting project documentation to the electronic system and obtaining unique identifiers for each future real estate object (FREO).
• Calculation and blocking of the guarantee share: we ensure correct allocation and registration in the State Register of Rights of the statutory guarantee share of properties (5–10% of total area) to comply with licensing requirements.
• Initial registration of special property rights: we support initial registration of Special Property Rights (SPR) in favour of the construction customer in the State Register of Rights.
• Drafting first-transfer agreements: we prepare legally secure templates for notarised sale and purchase agreements for future real estate objects, taking into account more than 30 mandatory statutory terms, including detailed instalment mechanisms and registration of security encumbrances.

4. Protection of investors and purchasers of future real estate objects

• Comprehensive developer audit: we verify the legality of construction through the Unified State Electronic System in the Construction Sector, valid permits, designated land use and the absence of relevant court disputes.
• Review of FREO sale and purchase agreements: we assess risks in first-transfer agreements for Special Property Rights, including fixed construction deadlines, penalties, procedures for changes in area and refund terms.
• Support for transactions under the eOselia and eRecovery programmes: we assist with legal due diligence when purchasing property under construction using mortgage financing or state housing certificates.

Court representation in construction and real estate disputes

Construction disputes involve significant technical expertise and complex evidence. We provide professional representation at all stages of dispute resolution:

• 📜 Protection of title and Special Property Rights: we protect clients in disputes concerning recognition of rights to future real estate objects, removal of obstacles to use, and cancellation of unlawful registration actions in the State Register of Rights.
• 🔍 Disputes with public authorities: we challenge unlawful refusals by DIAM to issue permits or certificates, as well as decisions of local authorities cancelling land rights or urban planning conditions.
• 🤝 Disputes between customers and contractors: we handle court proceedings involving recovery of payment for completed works, termination of construction agreements and damages for defective or delayed construction.
• 🔨 Judicial termination of FREO agreements and recovery of funds: where construction is delayed, we initiate proceedings to terminate contracts and compel the developer to return investments within the statutory period.

What do you receive as a result?

• For the developer: a lawful and transparent fundraising model protected against claims by the securities regulator, additional tax assessments and blocking measures.
• For the investor: secure acquisition of a genuine property right (Special Property Right), protected against double sales and recorded in the state register.
• Clear contracts: construction agreements that protect your deadlines and funds and clearly establish contractors’ liability.
• Asset protection: preservation of title to real estate and land against unlawful interference or raider schemes.