The focus of this study is on the analysis of the developer’s and purchaser’sudrisks that resultudfrom pre-sale of flats in the real estate market. This study attempts to analyzeuddeveloper’s and purchaser’s risks that result from pre-sale of flats in the realudestate market. The study discusses the results concerning the economic indicesudthat stimulate behaviors of participants and analysis of the Developer’s Actudin the aspect of benefits and risk for market participants. The provisionsudof the new Developer’s Act that introduce regulations beneficial for bothudcustomers and developers (thus improving their safety) were also discussed.udThe Developers Act emphasizes the importance of pre-sale as a limitationudof market risk that results from finding customers at the stage of pre-sale,udguarantee to sell investments at the pre-defined prices and finding funds forudfinancing developer’s projects. The analysis of benefits for both purchasersudand developers that result from pre-sale of flats secured with escrow accountsudpoints directly to reduced market and financial risks incurred by developersudand lower purchaser’s risk of losing their resources. It was also stressed that,udhowever, the costs of all the legal and financial solutions increase the financialudload for the customers.
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