Legal advice

We are willing to buy a house and two plots of land underneath it. The house was built about 20 years ago, but has not yet been in commission and is not registered in any way. The owner of the house owns the plot of land on which the house is located, as well as the adjacent plot on which part of the house is located. Could you please advise, what should I pay attention to in this transaction and are there any penalties that can be imposed?

30.01.2024 Aleksandr Lenkovskis, member of the board

Unfinished construction can have 2 different statuses – (i) an unbuilt object which is not registered anywhere, or (ii) a building registered as a newly erected structure (this is some kind of an intermediate stage before commissioning). If you purchase a building that is not registered either in the Land Service or in the Land Register, then in this case you are not actually buying a building, but just building materials with a construction project and a building permit (of course, if its validity has not yet expired). It is necessary to check both the existence of an agreed construction project and a building permit, and the compliance of the built house with these documents. If the house was built 20 years ago, then it will definitely be necessary to involve construction experts who will be able to assess what the chances are of putting such a house in commission.

In relation to the acquisition of part of the adjacent land plot on which the house is partially located, you can go in two ways: (1) ask the owner of the house to separate part of the adjacent land plot and join it to the main land plot under the house, or (2) simultaneously with the purchase of the main plot of land under the house, buy an undivided part of the adjacent land plot with a separate right to use that part of the plot that is located under the house, including the right to fence it, build on it and generally do whatever you want on it (as long as it’s not contrary to the law), as well as with the right to sell it without asking the consent of the co-owner, and with the right to separate it and annex it to your main plot of land. In the second case, simultaneously with the purchase agreement, it is also necessary to conclude a separate use agreement, having previously invited a land surveyor to accurately measure and assess the possibility of further separation.

Due to the very fact of unfinished construction, no other fines (except for the increased real estate tax rate of 3%) should be imposed, unless violations were committed during the construction process within the framework of the building permit and project, or the fact of construction itself is illegal. In relation to any building (including one that has been put into commission), if violations were committed, the construction inspectorate may make a decision on the need to carry out reconstruction (changes) or even demolish the structure (if, for example, the structure threatens life and health). Due to the fact that the house you are about to purchasehas been “under construction” for 20 years, we recommend that before purchasing, you must obtain advice from lawyers and relevant construction experts regarding the legality of construction and the possibility of putting the house into commission.

Law Firm Inlatplus, having many years of experience in solving such problems, is ready to provide its clients with legal assistance on the above issues, provide the necessary advice and assist in completing all necessary legal procedures.

Recent News