An Article by the Partners of Juris ferrum LF Published in the Journal of the UNB Association: Unfinished Construction, Investor Risks and New Legal Safeguards

An Article by the Partners of Juris ferrum LF Published in the Journal of the UNB Association: Unfinished Construction, Investor Risks and New Legal Safeguards

The primary real estate market in Ukraine has long resembled a game of roulette — except that the stakes are measured in apartments. For years, it was marked by unfinished developments, double sales, sudden “project adjustments,” and developers who disappeared faster than the first floors could be completed. Investors were left alone with the risks, while the protection of their rights often boiled down to endless court proceedings.

Eventually, the state decided to intervene and adopted Law of Ukraine No. 2518 “On Guaranteeing Real Rights to Real Estate Objects to Be Constructed in the Future.” Sounds like a revolution? Almost.

Об'єкти незавершеного будівництва: правова природа, ризики та нові гарантії для інвестора

We waited a few years for the law to start working in real life, observed how it actually functions in practice — and then wrote an article. Because while the problems have certainly not disappeared, new legal tools for addressing them have finally emerged.

In the November issue of the Journal of the Ukrainian National Bar Association, an article by the partners of Juris Ferrum LF was published:

“Unfinished Construction Objects: Legal Nature, Investor Risks and New Guarantees” 

Authors of the article:

  • Nadiia Gnizdovska — Attorney at Law, Partner at Juris Ferrum LF, Head of the Construction Law Committee of the Odesa Regional Bar Council, Member of the NAUAA Construction Committee;
  • Ganna Gnizdovska — Attorney at Law, PhD in Law, Managing Partner at Juris Ferrum LF, Secretary of the Construction Law Committee of the Odesa Regional Bar Council.

What the article is about — and why it matters:

🔹 The legal nature of unfinished construction objects
A detailed analysis of how unfinished construction objects differ from expectancy property rights and why they exist on the borderline between “almost mine” and “not legally mine yet.”

🔹 Special property right as a new civil law institution
The article examines the legal essence of the special property right — temporary in nature, yet proprietary. In practice, it serves as a legal “bridge” between the moment an investor pays the funds and the moment the keys are received.

🔹 Divisible and indivisible construction objects
Why a multi-apartment building and a private house are subject to different legal regimes, and how this affects the scope of investor rights.

🔹 Sale and purchase agreement of property rights
An updated contractual model for the primary market: which terms are now mandatory, how to properly identify the object, and what developers are actually responsible for.

🔹 System of guarantees for investors
This is where it gets most interesting. Registration, financial and construction safeguards that finally provide investors with real protection mechanisms:

  • mandatory state registration of the special property right (to prevent double sales);
  • a statutory ban on double sales;
  • a 60-day deadline for refunding funds if something goes wrong;
  • the right to demand completion of construction through court proceedings (rather than waiting for the developer to “find the funds”).

The article combines a scholarly approach, analysis of legislative novelties, and hands-on experience in construction and investment disputes. This is not just theory — it is a practical guide to navigating the new reality of Ukraine’s primary real estate market.

Juris Ferrum LF is proud of the contribution made by its partners to the development of construction law and to shaping a modern practice of investor protection in Ukraine. Because someone has to make sense of this chaos — and explain to others how to live with it.