27 July 2007, 09:39
The authors of the Bill deem necessary to adopt the Law in order to procure protection of rights of citizens-housing construction investors, to extend amenability of builders and managing financial institutions, to create conditions for equal fair competition, to prevent financial malpractice in the process of housing construction and investing, which will promote stabilization of situation on the primary housing market.
The Bill (Reg. No. 4020), submitted by the Cabinet of Ministers of Ukraine, envisages amendments to the following Laws of Ukraine: "On Financial and Credit Schemes and Property Management whilst Housing Construction and Operations with Real Estate", "On Publicity", "On Investments", "On Insurance". The Bill imposes a ban on financial institutions construction financing funds managers to exploit funds of construction investors and finance the construction of relevant residential house till procurement of a building permit by the builder under the established procedure.
The Bill also regulates the issue of concluding insurance contracts by the builder as an obligatory statement of an agreement between a manager and a builder.