Investing in pre-construction real estate is an excellent choice for patient dreamers and entrepreneurs who are not afraid to play the long game. By purchasing an object on primary market, you save significantly and get a flexible frame for realizing your bold ideas. Redevelopment and bold design solutions will make it possible to turn any apartment into a real Sultan's palace or a minimalist corner of calm and inner harmony.
This is all possible provided that the developer does not violate your plans with his shortcomings and problems. You will be able to avoid unpleasant surprises thanks to the presence of intermediary, who will not allow you to cooperate with an unreliable company. If you have already stepped on the rake of disappointed investors, we have no choice but to help you get out of a difficult situation and resolve it peacefully (or not so peacefully).
Freezing of work in the realities of wartime
In the circles of not the most responsible and reliable developers, “freeze” was a frequent occurrence until 2022. With its onset, even top developers were forced to suspend their activities indefinitely for obvious reasons. Now that the situation in the country and on the market has stabilized, and more than 70% of construction sites are operating at full capacity again, the company can no longer justify its inaction with the big word “force majeure.” Artificial delay of the project may occur due to rising prices for materials, inconveniences with logistics, or due to the developer’s desire to minimize his costs and wait for increased demand.
If a temporary “freeze” still separates you from the treasured apartment, and the construction process is not visible end and edge, you can use a simple algorithm to protect your rights:
- contact the developer - ask him about the reasons for the suspension of work and the timing of their resumption;
- Request confirmation of a force majeure situation - if the company refers to issues related to military operations, it must provide you with a certificate of specific force majeure situations that directly affected its activities;
- Don’t believe the words and excuse - if you do not receive acceptable explanations, you should seek help from a lawyer. Empty words and promises will definitely not help you improve the situation.
To protect yourself, you can sign an additional agreement with the developer regarding new terms and conditions of payment. The ideal option would be to temporarily suspend payments and restore them only with the start of construction work. In some cases, it is possible to exchange housing for a similar one, but in an already completed project. If it was not possible to solve the problem using one of the listed methods, there are only two options left: terminating the contract or going to court.
Escape routes: how to terminate a contract with a developer?
Disagreements with the developer may arise either through his fault or due to your personal circumstances. Whatever the reason, it is important to have a way to resolve the problem as painlessly as possible. If you want to terminate the contract and return the funds already invested, you may be faced with one of the possible scenarios:
- peaceful path - the developer understands your wishes, so you discuss the terms of termination of the contract and return of funds, and then record it all in writing so that there are no misunderstandings in the future;
- a controversial point - the developer is not against terminating the contract, but has a negative attitude towards the issue of returning his profits. Provide him with a formal written statement outlining your position. You will have to defend it in court;
- There will be no peaceful solution - the developer does not want to terminate the contract, much less return the money. As in the previous case, it is necessary to submit a written appeal to him for consideration. After receiving an official refusal, feel free to go to court to resolve the dispute.
It goes without saying that the reason for terminating the contract must be compelling. If you simply change your mind about investing in real estate, no one is obliged to be understanding and meet you halfway. Buying an apartment or house is a responsible and balanced step that should be taken only when you are truly confident in your desires and capabilities.
It smelled like something was cooking: when is the only thing left to do is go to court?
Resolution of disagreements with the development company in court is resorted to only as a last resort. You can turn to the blind but fair Themis if:
- the developer, without your knowledge, made any changes to the previously agreed upon project (its layout, footage, etc.);
- the company arbitrarily decided to change the price of the object, although you previously agreed on a specific amount;
- you are denied registration of property rights for the purchased housing;
- construction terms are strikingly different from those specified in the contract;
- the construction of the residential complex in which you invested is “frozen” for an indefinite period and for unknown reasons;
- when inspecting an already completed project, you discovered that it was made poorly or does not meet the requirements specified in the contract (there are obvious defects, the wrong windows or doors were installed, the characteristics of the materials used differ from those that were promised to you).
Going to court would be appropriate if you are faced with obvious violations of building codes or a contract, and the company itself ignores your complaints, refuses to resolve them peacefully, or even demands from you something that you did not agree on.
Proper preparation: how to file a claim against a developer?
Of course, we do not recommend you do this yourself. Your interests should be represented by a specialist who can competently present them and resolutely defend them to the last. In order to file a claim against a company, you need to contact a professional and:
- write a statement with details about the situation that became the reason for going to court;
- attach a copy of the previously signed agreement between you and the developer;
- add receipts showing that you have already paid part or all of your contribution;
- provide evidence of violation of the terms of the contract, building codes or any other points that served as the reason for appealing to a higher authority.
You must submit your application and all accompanying documents to the court at your place of residence / location of the new building / location of the development company. Any of the options is acceptable, so feel free to choose the one that is most convenient for you.