The new project of development of urban planning documentation will lead to decrease in the investment attractiveness of the objects – the expert

On November 2 took place a regular meeting of the Legal Committee of URE Club. Committee participants have considered two legal documents: The order of state registration of immovable property and their charges, that will become operative since 1st of January 2012, as well as the draft order of development of urban planning documentation.

During the first expert section, of the meeting of the Legal Committee of URE Club members offered their assessment of the Draft Order of the development of urban planning documentation prepared by the Ministry of Construction. The essence of the project is to reform the approach to urban planning documentation: general plans (plans and country planning), detailed plans of the territories (DPT) and a new kind of urban planning documentation of zoning plans.

The draft of order is, in effect, a compromise between different approaches to the issue of development of urban planning documentation. As noted by the meeting, the importance of this document is related to the fact that from January 1, 2012 begins the action of moratorium allotment of land plots on which there is no developed planning documentation. The project is a document which proposes the introduction of procedures for the development of urban planning documentation, without which the receipt of rights to land developers from January 1, 2012 would be impossible.

The biggest drawback of the Project was named laid down in the document the approach of passing the functions of development of urban planning documentation with the public administration (government bodies and local authorities) to a private investor or developer. As the chairman of the Legal Committee of URE Club, partner of Law Company KPD Consulting Vladislav Kysil mentioned, «this principle will inevitably lead to higher property values and reduce their investment attractiveness». Among the disadvantages of the bill under consideration by experts also was noted the lack of precise boundaries of the territory, which the documentation will need to develop and a priority of such development. In addition, lack of transparency in the relations between the competent authorities and private individuals in the development of urban planning documentation can lead to new corruption schemes.

During the Regulatory section of the meeting by participants was reviewed the order of state registration of immovable property and their charges, that will become operative since 1st of January 2012. According to experts, in general, the project includes a significant number of positive aspects on the introduction of title registration model, property rights, but not effectively solves the issue of protecting the interests of the mortgagee.

Members of Committee noted that changes in the procedure for registration of immovable property and their charges can seriously complicate the process of registration of mortgages. First of all, the changes in this area will affect banks, which will have to substantially change the existing lending procedures. As noted by the meeting, a possible solution to problems encountered would be giving the status of notary's registrar of mortgages.

In the work of the Legal Committee of URE Club took part by representatives of real estate, legal and consulting companies, financial institutions that are members of Ukrainian Real Estate Club.

Photo Report of the Meeting

Organizing partners of the Legal Committee of URE Club