Abstract

The provisions of the Bankruptcy and Rehabilitation Act, in effect as of 31 December 2015, did not include their own definition of a buyer and therefore only a natural person buying a housing unit in order to satisfy their own housing needs could be considered as such. The reason underlying such a narrow definition of a buyer was the need to protect such persons in the course of signing and enforcement of a developer agreement, though it did not fully satisfy the requirement of bankruptcy proceedings. The provisions, in force as of 1 January 2016, of the Bankruptcy Act (the name of the act has been changed) and the Restructuring Act the definition of a buyer has been extended for the needs of those proceedings to legal entities and ­legal entities without corporate status. This step should be considered to follow a right direction, though it is insufficient since it does not cover persons and entities buying premises other than housing units. Meanwhile, sometimes in order to complete the construction it is necessary to involve buyers of all units, both residential and commercial. To resolve this type of difficulty all groups of buyers should be covered by the arrangement.