Real estate due diligence in Ukraine. Why it is imperative?

Feod Group established in 1992 has vast experience of providing property search and due-diligence in Ukraine and Internationally to corporate and individual clients, stand ready to assist in all legal and business matters. Our lawyers in Ukraine speak English, Spanish, Italian, Greek languages.

In recent months, we have observed an increase in foreign investors seeking to purchase Ukrainian real estate. This applies equally to commercial and residential property.

One should note that there are no legal restrictions for the purchase of real estate by foreigners in Ukraine, except agricultural land. In this respect, no permits are required.

We strongly recommend you to instruct competent lawyers who carry out a thorough due diligence.

The most common risks related to the purchase of real estate are:

– anomalies in the preliminary contract resulting in the non-return of the prepayment for the proposed purchase;
– restriction of the seller’s rights to sell;
– encumbrances/ mortgages;
– rights of third parties – as an example, minor children officially residing in the residence who can not be evicted without official permission;
– claims from third parties who have a vested interest;
– undervalued sale price resulting in the sanction of tax authorities challenging the agreement as fictitious;
– complications with permits and funding of proposed purchase;
– tax issues.

As a result of the risks listed above, without necessary due diligence, the prospective purchaser stands to lose money, time and effort.

Legal review of transactions in real estate

Services we offer our clients typically include:

– investigation of report on the title to the property and/or legal restrictions affecting its use;
– investigation of report on the history of the particular real estate – previous sellers and re-constructions;
– official searches on the seller – criminal cases, the debt owed to creditors;
– physical inspection of the property;
– independent valuation of the property;
– assisting with negotiations with the seller;
– assisting in opening of bank accounts;
– reviewing and amending of the preliminary agreement, the deed of sale;
– advising on the contractual, taxes, expenses aspects of the purchase.

We are in the position to advise you on your proposed investment and how to structure it.

Investments and Immigration

Additionally, Feod Group is able to provide clients with high quality immigration services including temporary or permanent residency permits, family reunification.

Feod Group has within its team highly experienced brokers who are able to assist in identifying property suiting the client’s needs and at the same time protecting the client’s legal interest.

Feod Group is a diversified company specializing in various legal and business activities for international clients worldwide. Ukrainian lawyers and foreign experts jointly conduct each case. All the company’s lawyers speak English, as well as other foreign languages.

We will assist you in all aspects of the proposed property purchase.

For a detailed discussion of your issues, please schedule a meeting with Feod Group Directors.

If you are in Ukraine, to arrange an appointment, please contact our office in Kiev
+38 044 383 90 30
+38 050 393 90 30
+38 093 345 40 40
or in Odessa
+38 048 770 50 60

If you are abroad – you can contact us by e-mail ([email protected]) or by Skype (feodgroup)

Article author

Anastasia Taran Head of Corporate Services
Ukraine

In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes i...