The investor and the owner of the building plot have agreed that the owner will provide the investor with the opportunity to build a 6-unit condominium on the plot, and upon completion of the condominium, the owner of the building plot will receive a property in exchange for the ownership of the building plot.
In this arrangement, the interests of the owner of the building plot, as a future owner of a condominium unit, had to be protected so that the transfer of ownership of the building plot would not remain uncovered until the building was completed and the owner of the building plot obtained ownership of the unit. On the other hand, the investor carried the risk of building and investing money into a plot that he did not have ownership of. In addition, the financing of the investment was partially secured by installment payments received from buyers of condominium units, according to the degree of completion of the construction.
Finally, the parties were interested in developing the most favorable tax and personal income tax payment structure possible. To satisfy all these interests, we had to develop a complex structure that included, among other things, the establishment of a mortgage, the establishment of a right of use of the land, as well as preliminary agreements and sale and purchase contracts.
