Some problems of protecting the rights of citizens - participants in shared construction in case of bankruptcy of the developer

Abstract

The article is devoted to some problems of protecting the rights of citizens - participants in shared construction, affected by the bankruptcy of the developer. The authors analyze various protection mechanisms: developer liability insurance, settlements through escrow accounts, compensation fund and identify their advantages and disadvantages. Particular attention in the article is paid to the analysis of legal relations arising between citizens and the Public Law Company "Territorial Development Fund". As a result, the authors come to the conclusion that the legal protection of the interests of citizens is insufficient. Moreover, in certain cases, there is a conflict of interests between citizens and the Fund, as in the case of the transfer of the Developer's property to the Fund in the bankruptcy procedure and the termination of the pledge rights of equity holders to this property. The authors express their opinion on the need to develop project financing for construction and procedures for settling the obligations of the developer in bankruptcy.