Because of the financial crisis, many developers are in the verge of bankruptcy and only create visibility of work, tearing all the time. What to do in this case, real estate investors, how to sue unscrupulous company and is there a chance to recapture the cost to buy housing?
The economic crisis provoked a sharp increase in long-term construction in the country. Many developers faced financial difficulties, as a result, the project grows with debt and close to bankruptcy. Formal statistics looks quite good. In 2011, the city “stroykompleks” revealed in Moscow on 320 of the problematic objects, and by 2014 the number had reduced by half — to 150 homes. Now, as noted by Maxim Morozov, managing partner of the development company M9 Development, there are about hundreds of objects in Moscow, which is officially recognized as problematic. However, the last two years a rapidly increasing number of companies who are in the verge of bankruptcy.
“This process takes place approximately two years and so much has been the ongoing crisis and recession in the economy. In the verge of bankruptcy are those developers who took a large financial leverage and has built a “pyramid” of the projects under construction and loans under them. Now this less, because Russian banks are effectively cut off from cheap Western credit and liquidity greatly reduced,” — explains the developer.
As he said, the house, even in high degree of readiness may not be passed if mistakes were made at the stage of coordination of project documentation.
While developers can, for years to delay the construction, staying afloat.
“Purely legal work on the sites, which we call “unfinished”, being: a couple of workers put a couple bricks a day, and a similar situation occurs for many months, and sometimes years. They receive a renewal of a building permit, formally from one year to the transfer deadline, notify the buyers in proper form. All formalities are complete, but construction is not actually underway,” says Alain Chuprakova, consultant practice of “development” consulting group “neo Centre”.
The current crisis in the construction industry is quite logical, experts believe.
“Developers use the imported materials, the cost of which is increasing due to the weakening of the ruble, interest rates on loans are rising and the purchasing power of the population falls — all this has a negative impact on market share building. The number of bankruptcies increases, respectively, increases the number of affected citizens”, — said Alexei Kuznetsov, Director General of the legal company “Business house”.
Nobody wants to live in a house without ventilation
Ordinary buyers from the fact that they are a victim of global economic processes, it becomes easier not.
“Delays in the commissioning of buildings in operation occur for a variety of reasons, from lack of adequate permits, for example for connection to utilities, to the deliberate omission of the developer, wanting to finish the implementation of unsold apartments before the advent of the secondary market of competitors — buyers of apartments purchased it in the early stages of construction”, — says Anton Babenko, partner of legal Bureau “Padva and Epstein”.
So, according to the message of Moskomstroyinvest, despite the fact that in December prepare a road map for the Moscow facilities of SU-155, the funding has not begun.
“The situation in Moscow is testimony to the helplessness of power in relationships with major developers. And affected citizens who have invested their money in improving housing conditions. In March 2015, Deputy Moscow mayor Marat Khusnullin instructed “Moskomstroyinvest in the shortest possible time to resolve the issue of protracted GK “SU-155″. To date, nothing has been decided”, — said the Deputy of the state Duma Alexander Ageev. As he said, the number of complaints from citizens is the most problematic unfinished in Fili-Davydkovo GK “SU-155”.
“Now the facility is not something that is not being worked on, with him take out the remaining building materials,” continues Ageev.
However, Konstantin Ivanov, Chairman of the national centre of public control in the sphere of housing construction “Installcentral”, recognizes that the situation with the houses destroem GK “SU-155” complex not only in Moscow but also in other regions.
“Clear plans with clear schedules of funding is not so far. People worry: again come to the protests, in some regions it comes to hunger. Of course, it’s not only in Bank “the Russian capital”, but also in the actions of the regional authorities. Rather, in their maximum interest to “solve the problems of the SU-155″ in its territory”, — he describes the situation.
The representatives of the shareholders and of shareholders of the SU-155 have often openly accused the company of intentionally delaying. Even for homes located in high stage of readiness, are unable to issue permits.
So, buyers of one of the buildings, SU-155 in Shcherbinka faced with the fact that the construction was illegal.
“Presented in AKB “the Russian capital” (JSC) schedule of completion of projects of SU-155 (which is coordinated with the regional state authorities) in the list of objects of the first stage (2016-2017) our target was not hit. Moreover, in the manufacture of the Moscow Arbitration court is a case on suit LLC “Grandlex” (the owner of the land plot at the address of building) to JSC “SU-155″ for recovery of debt under the lease from September 1, 2014 and the compulsion to return the land plot to the address,” says Michael gold, one of the buyers of apartments in this house.
If buyers of SU-155 are unable to the apartment, in the residential complex “tsarina’s” (the developer of OAO “Moskovskiy Kombinat KHLEBOPRODUKTOV”) are faced with the opposite scenario. We will remind that earlier the developer and the banks PJSC “Promsvyazbank” and JSC “Russian agricultural Bank” signed a tripartite agreement on debt restructuring. The message of Moskomstroyinvest, this year, the apartment needs to obtain 1.8 thousand shareholders LCD “Tsaritsyno”. As told to Julia Petrukhina, member of the initiative group of the affected holders, several buildings had to be completed and put into operation, however the construction quality is below any criticism. Find a management company that is willing to take such objects, failed.
“We have declared that will try to pass two buildings in the control of the city. To live in the house where there is no ventilation, no-one wants. Moreover, there are homes that have been rented a year and a half ago, but the underground Parking didn’t complete, all this time we hear only empty promises,” says Petrukhin.
To avoid the “gray” schemes
In cases where the developer does not transmit in a period apartment, the buyer has several ways of effective protection. It is possible to demand cancellation of the contract or the transfer of the apartment. You can also demand a penalty, damages.
To select the protection method it is necessary to attract a qualified lawyer who can offer the best option given the situation. For example, in the case where the developer is deliberately delaying the process of handing over the flat, as a rule, it is better to go to court and demand the transfer of the apartment, recognition of the right of ownership. In the event of bankruptcy of the developer, which is not even finished building, you need to apply to the arbitration court, which considered the case about bankruptcy, to enable your requirements in the register of creditors”, says Anton Babenko, partner of legal Bureau “Padva and Epstein”.
In turn cheprakova believes that the best way is to try to resell the right of the requirement of this apartment, even with a loss.
“Because at the time of delivery it will be a long time, and the quality construction will probably be worse than that of similar objects. And naturally, you should not take a “wait and see” position, because the earlier you start proceedings, the more likely that the claim will be satisfied,” she explains.
As recalled by Alexey Kuznetsov, equity contract can be concluded only with the developer.
“Money under the contract must be paid only to the developer, which is specified in the contract. If paying cash you must obtain from the Builder a cash receipt and a cash receipt, which should contain details of your contract (number, date, name),” he says.
There is a common “gray” schemes, under which the developer actually is not responsible.
“Recently, a large widespread sale of real estate under construction by joining the housing and construction (HBC) and housing savings cooperatives (WNC),” warns Kuznetsov. In this case, technically the customer of construction are cooperatives, and the Builder practically carries.
You should also avoid various “grey” schemes of payment, such as preliminary agreements, promissory notes, etc.
At the conclusion of the contract with the Builder should pay attention to the fact that it included ways to enforce developer obligations under the contract. The most common is the obligatory insurance of risk of the developer. Each participant of shared construction gets in the hands of the insurance policy, for which he is a beneficiary.
“The amount of insurance indemnity shall be not less than the contract price. Insurance claims: violation of the terms of the transfer of the construction object, the recognition of the developer bankrupt by a court decision, a judgment to foreclose on the collateral. An insurance company that is insured, needs to be included in the list of insurance that meet the requirements of 214-FZ,” — says Kuznetsov.
