Letter of Credit

The Letter of Credit – is a new tool on a primary real estate market that allows purchasing an apartment under construction without any risk for a buyer. From safety point of view it is the best way to buy property under construction. One of the largest financial structures in Ukraine - PrivatBank - guarantees the safekeeping of funds at the apartment purchase deal. 

The uniqueness of such offer lies in the Letter of Credit (L/C) method of payment, when you may free yourself from risk associated with late commissioning of a real estate unit.

The handling procedures of buying a property in Art Hall club house are quite easy. Paying through L/C client transfers 100% of a cost of the chosen apartment not to a developer, but put them in a special account in PrivatBank.

Within the L/C contractual time, until the building is constructed and commissioned, your money will be kept in a bank. L/C contract is irrevocable, which means that all amendments to it shall be made in writing and upon mutual consent of the parties.

According to the contractual conditions a developer has to submit an on time commissioning certificate to the bank. Then the bank transfers money from the L/C account to the account of a developer, and you become an absolute owner of apartment.

If a developer fails to fulfill its obligations and commission a building in time, the bank will return money to the client together with an accumulated interest. The returned funds will act like a deposit with an annual interest rate charged. For the present moment this annual interest rate for L/C in USD is 10%.

Taking into account that prices for a primary real estate rise during a construction period for 20-30%, purchase of an apartment through L/C is not only a safe way of property buying, but also the most profitable way of investing funds of a buyer.

For more information about the Letter of Credit, please, call +380 (44) 496-90-90, or visit the sales department.