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A new procedure of inspecting the facilities put into operation may not only violate the constitutional rights, but also result in the property redistribution. This is the conclusion reached at the meeting of URE Club Legal Committee held on October 24th at President Hotel.
According to the draft Resolution of the Cabinet of Ministers, the new Procedure will establish a procedure to inspect completed construction projects in order to assess their compliance with the main technical requirements and to ensure their operation reliability and safety during their entire lifecycle.
The draft CMU’s Resolution «On Approval of the Inspection Procedure for Completed Construction Projects» was developed on the basis of the rule set forth in Article 39-2 of the Law of Ukraine «On Regulation of Town Planning Activities» instructing that owners must inspect and examine the property during their entire useful life. Specialized organizations will be vested the inspection powers to be listed and published by the Ministry for Regional Development, Building and Housing of Ukraine.
According to the Inspection Procedure, building structure and engineering system quality data will be subject to inspection inter alia: mechanical resistance and stability, fire safety, human life and health safety and environment protection, operational safety as well as noise protection and even energy saving. Inspections will be conducted on a regular basis (within 3- to 7-year period, depending on building type and operating conditions).
Therefore, the new procedure may become a lawful source of information not only on emergencies in buildings but also about unauthorized construction and, for instance, about unlawful apartment replanning. However, on the other hand, according to the participants of the URE Club Legal Committee meeting, the procedure of building inspection is regulated not enough transparently. In particular, it is not clear whether all buildings and structures will be subject to inspection or only those commissioned after 1 January 2014. Consequently, the draft in this wording may result in abuses by regulatory bodies.
Sergei Onishchenko, a partner in Chadbourne & Parke, a multinational company, believes «While the need to inspect completed buildings is well-grounded, the inspection mechanism is formulated in a vague manner, while these issues require clarity and detail. The proposed wording leaves the opportunity open for abuses and even for property redistribution».
The main controversy contained in the draft is a conflict between the need of mandatory regular inspection of real estate property after they are put in operation and the constitutional principle of private property protection as well as the provision on inviolability of residence. To this end, the Chairman of URE Club Legal Committee, a partner in KPD Consulting Law Firm, Vladyslav Kysil, noted: «The state again expands the set of mechanisms to control the private sector. Is this, indeed, in the interests of individuals’ safety or only under the cover of such kind of care? The findings of the proposed procedure analysis, unfortunately, tips the balance in favour of the second version».
Summarizing, the members of the Law Committee of URE Club unanimously note that the draft CMU’s Resolution «On Approval of the Inspection Procedure for Completed Construction Projects» requires detailed revision.
Photo Report on the outcome event
Background
Ukrainian Real Estate Club is a highly professional branch organization on the Ukrainian real estate market, contributing to its development and improvement. We are a unique platform for cooperation and communication between members of the Ukrainian and foreign real estate markets, as well as various related segments.
Speakers and participants of our events are leading experts of the real estate market, as well as other areas (information technologies, economics, law, banking, trade, investment, development and many others).
Among our activities are forums, conferences and summits. In addition, thematic business breakfasts, roundtable meetings and sessions of the UREC Legal Committee are held regularly.
URE Club Legal Committee
The legal regulation of activity of real estate market players is one of the most important elements of market infrastructure. Recognizing the importance of creating a transparent legal environment conducive to the development of the real estate market in Ukraine, Ukrainian Real Estate Club has organized a standing Committee on Legal Affairs (Committee of URE Club).
Regular meetings of the Committee will be held in facilities that provided by the Club or members of the Club. Ukrainian Real Estate Club provides full cooperation, technical, informational and organizational support to the Committee of URE Club.
The main tasks of the Committee of URE Club are:
• Systematic work, that is aimed at improving the legislation regulating of the property market in Ukraine.
• Facilitation of the members of the Club in resolving the legal and regulatory issues related to the activities of the Club.
The participants of the Committee of URE Club members are leading experts in the field of law, representing law firms - partners and members of the Club. In addition to legal experts in the Committee of URE Club involves all stakeholders from member companies of the Club. Members of the Committee of URE Club from among its members annually at a general meeting of the Committee URE Club shall elect two co-chairs of the Committee of URE Club.
