Invest in New Construction With Legal Protection, Not Blindly
Land plot
DIAM permits
Company reputation
Contract analysis
Written report
Buying an apartment in a new construction is the largest investment in most people's lives. The Lviv market is growing: from Sykhiv to Bryukhovychi, dozens of new residential complexes are springing up, with prices ranging from €1000-2500 per m². Behind colorful renderings and sales department promises, serious legal risks often hide: absence of full permit packages, court disputes over land, double sales of apartments, schemes with technical sole proprietors, imposition of unequal contractual terms.
The «Developer Due Diligence» service from O'LAW attorneys is an «X-ray» of the project before investing. We don't listen to managers. We look at documents, state registers, and court practice. The result is a written report with a risk «traffic light», clearly showing: buy, negotiate amendments, or refuse. Information is current as of 2026.
Red flags we identify first
- Land designated as «gardening» or «private farm», yet a 10-story building is under construction — guaranteed freeze at the commissioning stage
- Absence of urban planning conditions and restrictions (UPCR) — the base of the entire permit pyramid
- DIAM declaration instead of permit for CC2/CC3 classes — effectively «no-permit» construction, risk of cancellation
- Land leased from municipal property with lease term ending soon — problems will arise when registering ownership
- Contract with a technical sole proprietor instead of the developer's legal entity — complications in case of disputes
- «Flexible» price (±5-10% at delivery) — typical abusive clause allowing price increase
- Developer's right to postpone delivery by 12+ months without penalty — really means years of waiting
- Multiple investor lawsuits in the Unified Register of Court Decisions — most important indicator of a problematic developer
5 areas of our legal audit
1
Land plot
Designated use (request to State Geocadastre), form of right (ownership, lease, superficies), contract term, absence of arrests, absence of environmental or historical restrictions, red building lines.
2
Permit documentation
Urban planning conditions and restrictions (UPCR), DIAM permit or declaration according to building consequence class (CC1/CC2/CC3), technical conditions for utility connections, general contractor license.
3
Developer company
Ultimate beneficiaries, corporate structure, court disputes (Unified Register of Court Decisions), enforcement proceedings, tax debts, financial status, related sole proprietors and «technical» companies.
4
Previous projects
Completed residential complexes, compliance with stated deadlines, presence of unfinished constructions, reviews from previous project investors, complaints in Lviv buyer communities.
5
Sales scheme and contract
Analysis of investor rights registration model (see below), reviewing the contract for abusive terms, penalties, right to change area/price, commissioning deadlines, liability.
6
Written «traffic light» report
Final document with specific quotes, register screenshots, references to legislation, and a clear conclusion: buy, negotiate amendments, or refuse.
Legal framework
Investment in new constructions is regulated by: Law No.2518-IX «On Guaranteeing Property Rights for Real Estate Objects to be Built in the Future» (since 10.10.2022 — the main law), Law on Investment Activity, Law on Urban Planning Regulation, Cabinet of Ministers Resolution No.461 (commissioning procedure), Article 18 of the Law on Consumer Protection (unfair contract terms), Articles 203 and 215 of the Civil Code of Ukraine (declaring contracts invalid).
Investor rights registration schemes: which is safer
How the developer offers to register your rights says about the scheme's honesty no less than the permits. Here are the main models we work with on the Lviv market:
safe
Sale-purchase under Law №2518-IX
Since 10.10.2022 — the main model. The future object is registered in the State Register of Real Property Rights, sale-purchase agreement for indivisible object of unfinished construction. Developer's guarantee share, impossibility of double sales.
with nuances
Property rights sale agreement
Common model before 2022, still occurs. Doesn't grant real right to the object, only obligatory. Possible in combination with payment under notarized contract, requires separate verification.
with nuances
FFB contract (Construction Financing Fund)
Classic banking scheme. Safer than «preliminary contract» but has nuances with fund tariffs and exit. We check especially carefully when present.
high risk
Preliminary contract without registration
«Agreement on intention to conclude contract in future». Doesn't create real rights, risk of double sale, difficulty returning funds if developer refuses to perform.
high risk
Forward contract
Derivative financial instrument. Complex tax model, risks in case of issuer bankruptcy, limited investor protection in case of construction freeze.
high risk
«Investment deposit» / informal receipts
Frankly opaque scheme: cash payment, receipt from manager, no notarization. In case of problems, chances of returning funds are close to zero.
Result — written report with risk «traffic light»
All documents are in order. developer has positive history, contract is balanced. Conclusion: we recommend investing. The report includes specific list of verified positions with references to registers.
There are nuances to discuss. Possible area change ±3-5%, presence of non-threatening enforcement proceedings, incomplete utility connection conditions. We recommend negotiating contract amendments or obtaining additional guarantees.
Critical risks. Court disputes over land, absence of main permit, signs of financial pyramid, abusive contract terms. Conclusion: we do not recommend investing — we provide specific grounds.
Who needs developer verification
- Buyers at the foundation pit stage — highest risks, greatest savings with early problem detection
- Investors in apartment packages — wholesale investments require comprehensive project and developer analysis
- Buyers of nearly completed new constructions — even if delivery is tomorrow, document issues may surface 5 years later
- Commercial space buyers in residential complexes — separate risks with designated use and homeowners' associations
- Mortgage borrowers — the bank will conduct its own verification, but it focuses on the bank's risks, not the buyer's
- Buyers of «turnkey» new constructions outside Lviv — Sykhiv, Bryukhovychi, Rudno, Vynnyky, Zymna Voda: different rules depending on the territorial community
Why clients choose O'LAW
Written «traffic light» report
Structured document with quotes, register screenshots, references to law. You understand the essence, not just «seems okay».
Express from 24 hours
If the deal is tomorrow — we'll make it. Express audit of key risks in 24 hours. Full due diligence — 3-5 business days.
Lviv market expertise
We maintain a database of Lviv developers, history of their projects, city notaries, local court decisions. We know «dark» investor communities.
Fixed cost
Price agreed at consultation after project description — no hidden surcharges. Investment in verification — 0.2-0.5% of apartment cost.
Frequently asked questions
Verify the new construction before you sign
Risk «traffic light» report in your hands within 1-5 business days. Specific grounds, register quotes, references to law. No «seems okay».
Don't invest blindly
Developer due diligence from O'LAW — written report with risk «traffic light». Express audit from 24 hours.
- +38 063 404 67 68
- +38 068 679 52 51
- t.me/olaw_help
- o3law.company@gmail.com
- 32 Doroshenka St., Lviv
- Mon-Fri 10:00-19:00, Sat 10:00-14:00
