On July 31, 2012, LIGABusinessInform Press Centre hosted a web conference "On purchasing housing. Derivatives, securities and property rights”. Oleksii Petrashko, Commissioner of the National Securities and Stock Market Commission, and Natalia Dotsenko-Belous, Counsellor with Vasil Kisil & Partners Law Firm and a renowned real estate specialist answered numerous questions posted by portal's audience.

During the web conference the topic of forward contracts as one of the most profitable and reliable ways of financing housing projects took centre stage. According to conference participants, representing developers «Exco Plus», «Akvareli» and «Integral-Bud», the key decisive factor in favour of the forward contract as a tool of the future sale of real estate is the fact that they offer maximum guarantees to the buyers. Through the use of forward contracts the investor is guaranteed the exclusive and preferential right to purchase an apartment based on the title sale and purchase agreement, which eliminates the risk of double selling while neutralizing the risks associated with other use of foreclosed real estate.

Handling of forward contracts is done by the leading commodity exchange the Ukrainian Interbank Currency Exchange, which not only provides control over the transactions, but also keeps a record of ownership of the forward contracts.

Involvement of a commodity exchange as a trade organizer allows you to balance the interests of each of the contracting parties. The buyer becomes the primary owner on the fact of making payments under a contract of sale of property rights to the apartment. This helps prevent loss of time, which could arise in connection with the original registration of the title to the customer and the follow-up transfer of the apartment to the investor. 

Moreover, the initial registration of ownership of the apartments to investors by using forward contracts can reduce costs buyers spend on notarizing their transactions (savings of 1% of transaction value). Direct relationship between the buyer and the customer, resulting in a contract of sale and purchase of property rights to the apartment, contributes to eliminating various difficulties associated with long-term instruments, which have a monetary nature, such as trust bonds. 

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For more details please contact Yuliya Chervonookaya,

Head of PR/BD Department

Tel.: +380 44 581 7777

E-mail: pr@vkp.kiev.ua