What you need to know when buying real estate under an assignment agreement

In order to ensure the protection of the rights of participants in shared-equity construction, the Ministry of Construction of the Republic of Tatarstan informs about the specifics of legal relations related to the acquisition of rights to an object of shared-equity construction by ceding the rights of claims under the DDA.

When purchasing a shared-equity construction facility under an agreement on the assignment of rights of claims under a shared-equity construction agreement, a participant in shared-equity construction is recommended to pay attention to the difference in the amount of funds deposited in the escrow account.

If the price of the shared-equity construction agreement is lower than the amount payable in accordance with the assignment agreement, if the developer fails to fulfill obligations to transfer the shared-equity construction object, the participant will be refunded exclusively the amount placed on the escrow account.

Thus, a potential participant in shared-equity construction, when deciding on the acquisition of a real estate object by concluding an assignment agreement, must assess the possible risks arising from the failure of the developer to fulfill obligations under the contract of participation in shared-equity construction, namely, the refund of funds only in the amount placed on escrow accounts.