Every sixth apartment complex in Moscow was built with breaches and may be ruled an unauthorised building, Sergei Pivovarchik, managing partner of Consul Group, told RIA Real Estate.
These are situations in which, for one reason or another, the developer did not bring the permitted use of the plots into line with the intended purpose before construction began. Apartment complexes that have already been sold therefore stand on land where the law does not allow them to be placed, and as a result they are classified as unauthorised buildings.
"The Moscow City Property Department has now filed claims with the Moscow Commercial Court seeking to have apartment complexes recognised as unfinished construction. The city's claims are already known in respect of properties on Volnaya Street and in Degtyarny Lane and Perevedenovsky Lane", Pivovarchik noted.
On our assessment, if the matter proceeds on the footing that the property is an unauthorised building, the next step will be a claim for its demolition. The buyer of such property will have a right to claim damages from the developer. Restoring an individual's rights, however, may prove impossible, or extremely costly and lengthy.
"There is a strong chance of spending time, effort and money and being left with nothing but a court judgment under which nothing can be recovered, because the debtor was a nominee director and in reality has neither property nor a regular income from which sums could be withheld towards the debt. If the developer was liquidated through bankruptcy, the chances of ending up in that position rise many times over", Pivovarchik said.
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