Shared-equity construction risks

Primary-market schemes and red flags — before handing money to a developer

'Flat via FOP' scheme

Buying a flat via a contract with the developer's FOP — legally you buy a 'service', not a flat. Near-zero protection: at bankruptcy you're a regular creditor.

Bonds/promissory notes

'Bond investment exchangeable for a flat' — unsecured bonds of an FOP issuer. The only check is an audit of the issuer.

Construction financing fund (FFC)

The only legal primary-market scheme in Ukraine: money on a bank escrow account, the developer gets it after completion. Always demand an FFC/property-rights contract.

Red flag: discount >15–20%

Price markedly below market = the developer is collecting cash to finish previous projects — a classic pyramid sign.

Red flag: 'resale from a buyer'

Buying 'claim rights' from a previous investor — check the primary contract and whether the object exists in permits.

What to check in a developer

Completed objects (go see them), construction permit and works-start declaration in the DIAB registry, court cases, debts, founders, links to previous 'frozen' complexes.

Documents before signing

Title documents for land (or servitude), construction permit, project declaration, master plan, the FFC contract itself — read, don't 'trust the brand'.

The only scheme with real protection is FFC/property rights through a bank. Anything called 'investment', 'letter of intent', 'FOP bonds', 'preliminary contract without state registration' — legally you're giving an unsecured loan to a construction company. The risk is non-zero even with 'reliable' developers.

Over Nieuwbouwrisico's

Nieuwbouwrisico's — shared-equity construction: FOP/bonds/FFC schemes, red flags. Vastgoed: renovatie-ROI, bezwaren, bouwen of kopen, herindeling, nieuwbouw, erfenis, verzekering. Gebruik onze tools zonder registratie of software-installatie. Alle berekeningen gebeuren in uw browser — uw gegevens worden nooit naar een server gestuurd.