Legal support for construction companies

Legal support for the developer is constant monitoring of legal issues: support for the developer at all stages of project implementation, from acquiring land use rights, obtaining permits to commissioning the building and transferring the property to investors.

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Ivan
Topor

Head of real estate and construction practice, lawyer, candidate of legal sciences

Appointment for consultation

to the lead lawyer

Not only the buyer, but also the developer needs legal support – especially in times of war, when an unfinished real estate object that has not been put into operation may suffer from the arrival. The law firm “DE-JURE” provides services for the preparation of permitting documentation, legal due diligence before the start of the project, analysis of legal risks in construction, and, if necessary, helps to defend interests in court.

What is legal support for a construction company and why is it needed?

Legal support for a developer is a constant monitoring by a lawyer of legal issues: support for the developer at all stages of the project implementation, from acquiring land use rights, obtaining permits to commissioning the building and transferring the property to investors. It also includes legal analysis of contractual documentation, corporate and personnel issues, research and writing responses to claims, requests, applications, preparation of legal opinions and consultations, legal support, etc.

As a result, the developer avoids downtime and fines, increases investor confidence, does not waste time on resolving controversial issues and delegates interaction with regulatory authorities or judicial protection of his interests to a lawyer. All this helps to focus on important issues of construction and sale of real estate in an atmosphere of security and self-confidence.

At what stages of construction is legal assistance needed?

The best option is to work proactively and involve a lawyer for the developer at the initial stages before the start of construction, as this can protect the developer from risks in the future. In addition, proactive work is always more cost-effective than the costs of correcting mistakes.

Thus, the best time to involve a lawyer is the period of searching for a land plot for development. However, if the developer has independently gone through certain stages of project implementation (for example, checked land documentation, analyzed contract agreements, etc.), one should not ignore the possibility of involving a lawyer in the future, because in the process of his activities, the developer is constantly faced with actions that have legal consequences, including negative ones. They can arise both immediately and over a certain period of time.

How does a legal support consultation for a developer take place?

The initial consultation with a lawyer regarding legal support for construction takes place in the format of a 30-minute phone call to clarify the request. After that, the developer sends a scanned package of documents for preliminary review.

Then, at a personal meeting, the lawyer and the client discuss the goals and most relevant risks of the project, the lawyer answers questions and provides advice. At this meeting, the format of interaction is also determined, taking into account the goals set: in the case of long-term cooperation, the law firm and the developer draw up a cooperation agreement, and in the case of a one-time interaction, oral or written consultation is sufficient (at the client’s choice).

What documents are needed to start legal support?

For legal support of construction, a lawyer needs certain documents. The client can provide scanned versions before the face-to-face meeting or bring them with him to the consultation. The list of documents that are required during the support of investment projects includes:

  • title documents for the land (lease agreement, extract from the State Register of Property Rights to Real Estate (DRRP), state act, etc.);
  • urban planning conditions and restrictions, technical conditions, project, expertise, construction permit, etc. – depending on the stage of project implementation of the developer and what issues need to be resolved;
  • the charter and registration data of the developer’s company.

If the sale of future real estate has already started, before the meeting, the developer should provide templates of agreements with investors.

What services are included in the legal support of construction companies?

Legal services for a construction company cover all stages of construction: from licensing construction activities to registration of real estate rights and representation in court in the event of disputes with authorities of various levels. In particular, a lawyer resolves the following issues for the developer:

  • preparation of legal opinions and consultations upon requests;
  • support of permitting and approval procedures;
  • preparation and/or verification of contracts with counterparties (contract, supply, purchase and sale, lease and others);
  • preparation of templates of contracts with investors depending on payment programs (100% payment, installment payment, implementation of shares and loyalty programs in contracts);
  • coordination of construction with state bodies, interaction with authorities, regulatory bodies, counterparties, and, if necessary, defense in disputes with them;
  • audit of advertising materials;
  • support of personnel issues;
  • preparation of documents on corporate activities (decisions of the general meeting of participants of the developer’s legal entity, including on amending the charter, dismissal/appointment of the manager, change in the composition of the founders, addition of types of activities, etc.).

The above list is not exhaustive – in practice, a lawyer can perform a number of other tasks necessary for comprehensive support of the developer.

What risks can be avoided thanks to legal support for construction?

The comprehensive work of a lawyer prevents the cancellation of permits due to inaccuracies in documents, provides a strong position in the event of disputes with construction contractors and investors, and insures against tax sanctions based on the results of the developer’s activities, including those related to income from sales of real estate or rights to it. A lawyer also helps prevent criminal risks in the event of an unprofessionally constructed financial model.

What results can be expected after applying for legal support?

Legal support allows the developer to focus on his main tasks and avoid unnecessary mistakes at all stages of construction. The team of lawyers takes on the entire “paper front”. Thus, the process of construction, sales, and other construction and commercial activities does not stand still due to legal disputes or claims, the budget is not “eaten up” by fines, and sales go faster, because legal transparency increases the trust of buyers and contractors.

Publications

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