The new bill restricts the rights of completing ONS Developers

03.10.2011 16:40
Articles about real estate | The new bill restricts the rights of completing ONS Developers September 29th regular meeting of the Committee on Law Ukrainian Real Estate Club. During his two bills were discussed: the draft of the order of the Town Planning and Monitoring Draft Law regarding incentives to completion of construction in progress, the press service of the committee.

The essence of the first project is to organize, regulate and improve the system of observing, assessing and forecasting the state of all objects in the territory of Ukraine. The project aims to ensure the collection of information on existing structures and the formation of a structured set of data about them. In other words, without such a system for collecting, processing and structure, public services, in turn, will not be able to prepare authentic town-planning cadastre.

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Overall, the project experts gave a positive assessment, but were marked and some unrecorded moments. The experts noted that the draft is not spelled out the responsibility of legal persons for failure to provide information or providing false information about the buildings. Specifically, it concerns the monopoly of the market, information on which, as noted by the committee members themselves, it is difficult not only receive but also to check.

The second part of the expert section was devoted to the draft Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine (to stimulate the completion of construction in progress)", prepared by the Ministry of Construction.

The bill would impose an additional tax burden on developers in the event of delay in commissioning of facilities. The amount of tax varies from 1 to 5% of the estimated cost of construction.

According to members of the committee on the rights URE Club, the proposed mechanism has significant shortcomings, namely, unnecessarily increases the financial burden on developers, that in the final regulation leads to more expensive facilities and the loss of their investment attractiveness. In addition, the introduction of the new tax goes against the ongoing construction in the country of reform, whose main objective is the liberalization of regulations in the field of development. In this regard, Vladislav Kisil, chairman of the Committee on Law URE Club, partner JC "Efficiency Consulting", said: "The penalty, in fact, encourage the completion of the method is contrary to the legitimate rights of owners and users in the construction of their plots, which is unreasonable restrictions ".

Committee members were unanimous that the bill creates the preconditions for corruption, as a function of administration of the new tax is proposed to transfer to commercial structures. Following discussion, the Committee considers it necessary to note that the project, if adopted, would threaten the development of the domestic real estate development. The Committee's position is to offer to the Ministry of Construction to withdraw the proposed law because it essentially contradicts the interests of participants in the domestic real estate market.

In the work of the Committee on Law URE Club was attended by representatives of real estate, legal and consulting companies, and financial institutions that are members of Ukrainian Real Estate Club.
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