How to Check a Developer Before Buying an Apartment: Step-by-Step Instructions

When you buy an apartment in a building under construction, you're effectively lending money to the developer. If the company doesn't finish the project, getting your money back is difficult and getting the apartment is even harder. Ukraine's history of "long-term construction" counts thousands of defrauded investors. That's why checking the developer is the most important stage of buying on the primary market. The good news: most information is available in open state registers, and you can do the check yourself in an evening or two.

Step 1. Find Out Who Is Really Building

A construction project usually has several participants:

• the client (customer) — the company that obtained the construction permit and holds the land rights;
• the general contractor — the company actually doing the work;
• the seller — the company selling the apartments (may be a separate legal entity or a fund);
• the developer (brand) — the group of companies under whose name the complex is marketed.

Often the brand is well known while the client is a new company with minimal share capital. This is normal practice, but you need to know who is a party to your contract, who holds the permit and who is responsible for the project.

Step 2. Check the Companies in Registers

Unified State Register of Legal Entities

Company data — registration date, founders, ultimate beneficial owners, director, share capital, activities — is available in the Unified State Register. Convenient aggregators that combine data from many registers include YouControl and Opendatabot.

What to watch for:

• the company was registered recently and the founders are nominees;
• frequent changes of directors and founders;
• the company is being liquidated or is in bankruptcy;
• beneficial owners are linked to citizens of the aggressor state or are under sanctions. Sanctions databases such as War & Sanctions by the Defence Intelligence of Ukraine are useful here.

Tax Debts

A significant tax debt is a sign of financial trouble. Information on debtors is published on the State Tax Service website and shown in aggregators.

Court Cases

In the Unified State Register of Court Decisions, search by the name and EDRPOU code of the developer, client and general contractor. Especially alarming:

• investors' claims for refunds or recognition of rights to apartments;
• cases on canceling construction permits or land leases;
• criminal proceedings against officials;
• disputes with local authorities over the land plot.

Step 3. Check the Land Plot

Land is the foundation of the project, literally and legally. Get the cadastral number (the developer should provide it) and check it on the Public Cadastral Map:

• designated purpose — it should be for construction and maintenance of an apartment building (code 02.03) or another appropriate code;
• form of ownership and type of right — ownership or lease, and the lease term;
• area and boundaries — do they match the marketing materials?

If the land is leased, make sure the lease doesn't expire before construction is finished. The legal regime of land is set by the Land Code of Ukraine.

Step 4. Check the Permits

Construction is governed by the Law on Regulation of Urban Planning Activity. Apartment buildings require:

1. Urban planning conditions and restrictions — maximum height, density and setbacks.
2. Design documentation with expert review — mandatory for consequence classes CC2 and CC3.
3. A construction work permit — issued under Cabinet of Ministers Resolution No. 466.

All these documents are registered in the Unified State Electronic System for Construction. Find your complex by address or the client's name and check:

• whether the number of floors and apartments matches the marketing materials;
• whether the permit has been canceled or suspended;
• whether the permit covers the specific phase where you're buying.

Construction oversight is carried out by the State Inspection of Architecture and Urban Planning.

Step 5. The General Contractor's License

Construction of CC2 and CC3 buildings is a licensed activity under the Law on Licensing of Economic Activities. Check that the general contractor has a valid license — licensee information is available in the construction e-system and aggregators.

Step 6. Assess the Developer's Track Record

• How many buildings has the company built and commissioned? Check the certificates of acceptance into operation (procedure set by Cabinet of Ministers Resolution No. 461).
• Did it meet deadlines? Compare the dates in advertising with actual commissioning dates.
• Are there frozen projects? Even one is a serious warning sign.
• How do residents of completed buildings live? Go there, talk to people, look at the quality of the facade, entrances and grounds.

Step 7. Check the Financing

• Sales scheme. A property rights purchase, a construction financing fund, investment certificates — each scheme has its own risks. Their specifics are covered in how to choose an apartment in a new building.
• Bank financing. If a bank lends to the project or has accredited it for mortgages, it has already done its own check — a plus.
• Sales pace. If the developer finances construction only from sales, a drop in demand can stop the work.

Step 8. Visit the Site

• Visit on a weekday: is machinery working, how many workers are there?
• Compare the pace with the developer's schedule.
• Look at historical satellite imagery in Google Earth to see how fast the site has changed.
• Follow the developer's official photo and video reports — regular reports indicate openness.

What Law No. 2518-IX Will Change

Law No. 2518-IX "On guaranteeing property rights to real estate objects to be built in the future" provides that a buyer's rights to an apartment in a future building are registered in the state register before construction is completed. Key innovations include:

• registration of the unfinished building and future apartments in the state register;
• a ban on double selling one apartment, since every deal is recorded in the register;
• the ability to use a future apartment as collateral for a mortgage;
• stronger control over the intended use of funds.

Most provisions are tied to the end of martial law, so check which rules are in force at the time of your purchase. Even when the law takes full effect, checking the developer yourself will remain necessary.

Checking "Through the Bank"

A useful indirect indicator of reliability is the banks' position. If banks have accredited the complex for mortgages or lend to the construction, they've already done their own legal and financial checks. Ask the sales office which banks the developer works with and verify this on the banks' websites. A large project with no partner banks at all is a reason to ask more questions.

Red Flags

• The developer won't show the construction permit, land documents or contract before payment.
• The price is well below competitors in the same area.
• Sales "hand to hand" through intermediaries without a direct contract with the developer.
• A demand to pay in cash or to a private individual's account.
• Construction has stopped for two or three months without explanation.
• More floors in the advertising than in the permit.
• Court disputes with investors and local authorities.

Documents to Request From the Sales Office

1. A register extract on the land plot or the lease agreement.
2. Urban planning conditions and restrictions.
3. The construction work permit.
4. A positive expert review of the design.
5. The general contractor's license.
6. A sample of the contract used for sales.
7. The construction and commissioning schedule.
8. Documents confirming the seller's rights to the apartment (if the seller isn't the client).

Compare the documents with data in state registers. If something doesn't match, ask questions or walk away.

How to Protect Yourself in the Contract

• A specific date for commissioning and handover of the apartment.
• Penalties for the developer for missed deadlines.
• A fixed price without currency pegging, or a clear mechanism for changing it.
• The buyer's right to terminate and get a refund in case of a substantial delay.
• A description of the apartment: floor, area, layout, finishing condition.
• How area differences after measurement are settled.

Always show the contract to an independent lawyer before signing.

Frequently Asked Questions

Can I trust big, well-known brands? A well-known brand reduces risk but doesn't eliminate it: in a crisis even big companies have problems. Check each specific project, not just the brand.

Does registration in the construction e-system protect me? A permit in the system confirms that construction started legally, but doesn't guarantee completion.

What if construction stops? Join forces with other investors, document violations, write to the developer and, if needed, go to court and state oversight bodies. Collective action is usually more effective.

How much does a legal check of a developer cost? Much less than your payment for the apartment. For expensive purchases it's an essential expense.

Should I buy in the last phase of a complex whose earlier phases are finished? It's one of the most reliable options: the developer has proven it can complete projects, and infrastructure already partly works.

Conclusion

Checking a developer means working with open data: company and court registers, the cadastral map and the construction e-system. Check the land, permit, contractor and company history, assess the pace of work in person and read the contract carefully. Once the building is commissioned, don't forget a thorough apartment acceptance inspection. And if you're still undecided about the type of housing, compare resale and new builds.

Sources

• Law of Ukraine on Regulation of Urban Planning Activity.
• Law of Ukraine on Licensing of Economic Activities.
• Land Code of Ukraine.
• Law No. 978-IV on construction financing funds.
• Cabinet of Ministers Resolutions No. 466 and No. 461.
• Construction e-system, DIAM, Public Cadastral Map, Unified State Register, Register of Court Decisions.

Read Also

• How to choose an apartment in a new building
• New-build apartment acceptance: a checklist
• Resale vs new build: which to choose
• Real estate investment in Ukraine