The Parliament improves regulation for advertising of construction projects

10.10.2019

On 02.10.2019, Ukrainian Parliament adopted as the whole the Law of Ukraine “On Amending Certain Legislative Acts of Ukraine regarding the Improvement of the Procedure for Licensing Economic Activities” (Bill No. 1060). This law provides for more stringent requirements for advertising construction projects, which are constructed with the involvement of non-state funds.

Tymofii Sikorskyi comments the new Law.

The new version of paragraph 13 of Article 8 of the Law of Ukraine “On Advertising” establishes the existence of a license for financial services, as a mandatory document in case of raising funds from the population and legal entities. Moreover, this provision does not contain a definition of the concept “attraction of private funds of individuals and legal entities to finance the construction of a residential building”.

This provision may call into question the legitimacy of advertising of construction objects, the sale of which is carried out through property rights and preliminary agreements, since in such cases developers usually do not have licenses for carrying out economic activities to provide financial services.