Orest Hlado
Real estate

How to check a new build before handing over money

Five things worth checking in a new build in Lviv before you pay: developer, land, permits, contract, encumbrances.

Orest HladoOrest Hladolawyer, real estate Published 15 October 20262 min read
IN SHORT
  • A nice website and a contract don't guarantee anything. The problem is often deeper, in the land under the building.
  • Check the developer, the plot, the permits, the type of contract and any encumbrances.
  • A check takes a day or two and saves you years in court.

You've found a flat in a new build, you like the price, and you want to pay quickly before they're gone. A familiar feeling. But that's exactly the stage where people get burned.

A story from practice

Someone came to me literally one step before buying. A new build in Lviv, a nice area, a fair price, the money ready. All that was left was to pay.

Good thing they decided to check before paying.

When we looked at the land plot under the building, it turned out there were court disputes over it. Put simply, the very land under the new build was in limbo. And that means the building might never be commissioned because of that land. The person would have been left with neither a flat nor money.

The worst part is that everything looked perfect. The developer's website, the contract, the managers. The problem wasn't in the flat but deeper, and you can only see it if you know where to look.

1. Who the developer is

How many years on the market, what they've already completed, whether they're in court with buyers. The court register shows a lot: if buyers sue a developer en masse over missed deadlines, that's a signal.

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2. The land under the building

Whose plot it is, on what basis the developer uses it (ownership, lease, superficies), whether its designated use matches residential construction and whether there are disputes.

3. Construction documents

The permit to carry out construction work, planning conditions, the design. Some of this is visible in the unified electronic construction system.

4. What you're signing

New builds are sold in different ways, and each type of contract protects you differently:

ContractWhat to check
Purchase of property rightsWhether the property rights are registered and free of encumbrances
Investment agreementThe buyer's rights if construction stops
Construction financing fundWho manages it and what guarantees there are
Preliminary agreementNotarial form, the deadline for the main agreement, refunds

5. Encumbrances and seizures

Whether the plot and the property rights to the flat are mortgaged. Sometimes a developer takes a loan against the project, and then the bank has its own rights to what you're buying.

All of this takes a day or two, and it saves you years in court.

Planning to buy? Here's new-build due diligence in Lviv. If a deposit is required before the deal, read deposit or advance.

Frequently asked questions

Can I check a new build myself?

Partly, yes, most registers are open. But what matters is knowing what to look for and how to assess what you find.

What if I've already paid?

A check still makes sense: we'll see the risks and what can be done about them now.

How much does a check cost?

From €150. If there are several properties, I check them as a package.

This article is general in nature and is not legal advice. Every situation has its own nuances.

Orest Hlado
AUTHOR
Orest Hlado
Lawyer in Lviv. For 5+ years I've been helping entrepreneurs, IT companies and foreigners with companies, trademarks, contracts, real estate and residence permits.
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