Under the Law on Real Estate 2014, a real estate developer must provide a bank guarantee to any house buyer to secure for the developer’s obligations to refund all advance payment received from the buyer if the developer fails to deliver the house to such buyers on time. The refund guarantee is intended to provide additional protection to house buyers but it also adds additional costs to the transaction. There are several structures for a developer and a house buyer may employ to avoid the requirement for a refund guarantee. But each of the structures carry certain legal risks. In particular,

The new Real Estate Business Law 2014, Housing Law 2014 and most recently Decree 99/2015 implementing the Housing Law 2015 have changed substantially the way that a residential housing project is financed. Set out below are some of the key changes most of which took effect from December 2015:

The ability to sell unfinished construction works is important for real estate developers who do not have sufficient financing to complete the works. Unfortunately, there is no clear legal framework supporting such sale. This is because: