How to buy real estate without risks in 2026

The real estate market in 2026 will remain dynamic and at the same time unpredictable: demand is growing, but changes in construction financing, updated rules for registering future objects and increased control of transactions require the buyer to be much more attentive. In order to purchase housing without risks, it is important to understand the new regulations and be able to correctly assess the reliability of the developer. The risks that we will consider in this article relate to the primary and secondary real estate markets.

Disputed rights to the object and double sales in the primary market

One of the most dangerous risks, which concerns the primary market, is the situation with double sales and disputed property rights. After 2022, a significant number of developers, especially outside the western regions, faced a sharp drop in new sales and delays in payments under existing contracts. Some investors, who have already paid the cost of the future apartment in full, began to initiate legal proceedings to protect their interests and achieve recognition of ownership. Such cases can last for many months, and sometimes years.

In practice, a rather problematic situation is formed: while the investor is trying to confirm his property rights through the court, the developer can unilaterally terminate the contract, referring to the alleged termination of the relationship. Then he has the opportunity to sell the same object to another buyer who is unaware of the existing dispute. At the same time, in the future a court decision may appear that recognizes the ownership right precisely with the first investor. In such a case, the new buyer actually finds himself with an invalid transaction and serious financial losses.

To minimize the risks of double sales, it is important to conduct a thorough legal check before signing any contract with a developer. First of all, you should analyze all possible legal disputes regarding the developer and a specific object in the Unified State Register of Court Decisions. In addition, the contract must provide clear guarantees from the developer that there are no other contracts regarding this apartment and that there are no lawsuits that could cast doubt on his right to attract an investor.

Although the developer may provide false guarantees, such behavior creates a risk of criminal liability for possible fraudulent actions. That is why competent legal due diligence and clearly stated obligations are the basis for minimizing the risks of purchasing a new building.

Unforeseen financial charges when purchasing housing in a new building

One of the most painful risks in the primary market is the developer’s requirement to make additional payments for a future apartment or office during the construction process. This risk is especially relevant during protracted hostilities, when the increase in the cost of materials, equipment rental, and labor costs significantly affects the cost of the project. Developers often try to pass this difference on to investors, arguing that all calculations are made in hryvnia, and its depreciation has led to significant financial losses for the company. Therefore, investors are often offered to pay a certain amount in proportion to the area of ​​the apartment or, in case of refusal, are threatened with termination of the contract with a refund in hryvnia equivalent at the price that was before the war. Given the change in the purchasing power of the hryvnia by more than one and a half times, many investors are forced to accept the developer’s conditions.

However, the problem of additional payments applies not only to those who invested in a new building before 2022. A new investor who plans to purchase real estate in facilities under construction in 2026 may also face similar risks, even if the contract is signed after the market conditions are updated. The situation is complicated in cases where the buyer receives rights through assignment, that is, he buys property rights or a share contribution from the original investor. In this case, the settlements are made exclusively between the two investors, without the participation of the developer, and the price in the main contract remains the same as that determined several years ago. This means that even if the new investor has paid a significantly larger amount to the original investor, legally for the developer he is only a successor who has the same obligations and risks as the previous buyer.

As a result, after the re-registration of the rights, the developer may demand additional payments or threaten to terminate the contract. If the contract is terminated, the new investor will be able to return only the funds specified in the original contract. Regardless of the amount he actually paid to the previous owner of property rights. That is why it is extremely important to check what amount is fixed in the contract with the developer, and whether it corresponds to the real amount that the new investor plans to pay.

To minimize risks, the investor should ensure that the contract includes a clause on the return of funds tied to the inflation rate or the US dollar exchange rate on the date of signing the contract. This will avoid financial losses in the event of a depreciation of the hryvnia and provide a fair compensation mechanism in the event of termination of the contract at the initiative of the developer.

Implementation of new regulatory rules in the field of real estate in the primary market

After the implementation of the Law of Ukraine “On Guaranteeing Property Rights to Real Estate Objects to be Built in the Future”, a fundamentally new approach to financing construction and attracting investors was introduced. Developers who received a construction permit after October 10, 2022 are no longer entitled to use the old scheme for selling property rights. The new legal mechanism instead of property rights was the conclusion of purchase and sale agreements for rights to future real estate objects, the so-called MES.

If the developer continues to offer the investor the purchase of property rights, this is a signal of serious legal risk. Violation of the requirements of the law can lead to problems during the registration of ownership after the building is put into operation. In fact, the investor risks finding himself in a situation where he has paid for an apartment, but cannot register ownership of it due to the non-compliance of the primary agreement with current regulations.

Developers often reassure buyers by promising to replace or bring contracts into compliance in the future. However, in this case, the investor becomes completely dependent on the developer’s goodwill, honesty, financial condition, and willingness not to make additional demands. In addition, the procedure for “replacing contracts” itself may be legally questionable and may provoke new disputes.

Therefore, for safe investment, it is critically important to conclude only those contracts that comply with the updated legislation and not agree to schemes that contradict the requirements of the Law.

Representation by a power of attorney drawn up by a foreign notary

During the period of mass migration caused by the war, concluding real estate purchase and sale agreements through representatives became a common practice. Owners who are abroad often grant their proxies the right to act on their behalf. However, it is at this stage that one of the most underestimated risks arises – the legitimacy of a power of attorney issued by a foreign notary.

The general rule is that such powers of attorney must be apostilled. However, there are countries with which Ukraine has agreements on mutual recognition of notarial documents without an apostille. As a result, in practice there are situations when a representative brings a power of attorney allegedly issued abroad, but a Ukrainian notary does not have the tools to verify it. Foreign powers of attorney are not subject to entry in Ukrainian registers, and therefore, it is impossible to establish their authenticity. This creates a serious risk of fraud, because it is much easier to forge a paper document than to bypass the electronic control system.

To avoid such threats, the optimal solution is to issue a power of attorney not at a private foreign notary, but at a Ukrainian consulate abroad. Documents issued by consular institutions, after their arrival in Ukraine, are subject to mandatory entry in the appropriate register. Usually, this is done by a notary who certifies the real estate alienation agreement itself. In such a situation, a specialist can check the legitimacy of the document and make sure that it is not a fake.

Although the law provides for the possibility of declaring the transaction invalid in the event of using a fake power of attorney, it is futile to count on a real refund from a fraudster. That is why it is much safer to prevent the risk than to later look for a way to return your money and prove the fact of forgery in court.

Marriage concluded abroad

When concluding real estate purchase and sale agreements, an imperceptible but very significant risk often arises – the seller has a marriage registered abroad. According to Article 65 of the Family Code of Ukraine, the alienation of property without the consent of the other spouse may be declared null and void. And although this rule has been in effect for a long time, during the period of mass emigration of Ukrainians abroad, the number of such cases has increased many times.

The main problem is that it is practically impossible for a notary to establish the fact of a foreign marriage. If the marriage is not entered into the Ukrainian register of civil status acts, the notary is forced to rely only on the words of the seller. And the seller, in turn, may not report it. Sometimes deliberately, but more often out of a banal reluctance to deal with the execution of documents or obtaining the consent of his or her husband or wife.

As a result, the buyer finds himself in a situation where the concluded agreement may be declared invalid due to the lack of consent of the other spouse. In this case, the return of funds can be a long and problematic process, especially when the actual amount of the settlement does not coincide with that specified in the contract.

To protect yourself, it is important to insist on entering the real value of the property into the contract. This will allow you to demand a refund of exactly the amount that was actually paid. In addition, it is worth carefully checking the seller’s documents and clarifying information about his marital status.

Although similar risks existed before, they have become much more common today due to the large percentage of citizens who are married to foreigners or sell real estate remotely.

How lawyers at DE-JURE help to safely purchase real estate

Purchasing real estate is always a responsible step, especially in wartime and constant changes in legislation. That is why the support of an experienced lawyer significantly reduces risks and allows the buyer to be confident in the safety of each stage of the transaction. Lawyers of the company “DE-JURE” conduct an examination when purchasing real estate in the primary and secondary markets and help clients avoid the most common mistakes. The list of legal services includes:

• verification of the developer, his permits, litigation and financial reliability;
• analysis of the terms of investment contracts, purchase and sale, assignment, MES and other financing models;
• identification of hidden risks: additional surcharges, double sales, encumbrances, arrests;
• verification of the seller’s property rights, marital status, the presence of powers of attorney and their legitimacy;
• consulting on the correct execution of settlements and protection of interests in case of force majeure;
• conducting negotiations with the developer or seller;
• representation of the buyer’s interests during the notarial registration of the transaction;
• support in litigation if the investor’s rights have already been violated.

Concluding a contract without assessing legal risks can cost much more than professional support. The company “DE-JURE” helps you avoid pitfalls and purchase real estate safely.