Voronova S.V. Preliminary contract: protection of the rights of the parties in a shared-equity construction

Abstract: This research examines the norms of civil legislation that regulate the social relations in the area of protection of the rights of citizens in the cases of shared-equity construction of multi-unit condominiums or other types of real estate. It also includes the theoretical views within this subject and looks at court rulings. A research is conducted on the problems associated with builders raising the capital for construction from the shared-equity participants on the preliminary contract basis. This includes the legality of earnest payment clause in the preliminary agreement and penalties for breach of agreement to execute the final contract. The scientific novelty consists in the fact that the author not only analyzes the problems related to the protection of rights of the parties involved in the shared-equity construction that have entered into a preliminary contract, but also proposes their solutions. These proposals would contribute to the increase of ensuring protection of rights and property interests of the parties of the shared-equity construction projects.

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