Uzbekistan to Introduce New Guarantees for Buyers of Housing Under Construction
A draft law on shared-equity construction has been sent to the Senate. The document provides for the use of escrow accounts and mandatory notarisation of contracts.
Under the new rules, buyers' funds will be held in authorised banks. Developers will gain access to these funds only after fulfilling their obligations and commissioning the housing. To attract funds from citizens, companies will need to register in a unified system and publish a project declaration.
Not only contracts but also all amendments to them will need to be notarised. In cases of illegal fund-raising, buyers will be able to demand a refund with interest.
If a developer fails to meet the housing handover deadline, the project can be declared problematic without a six-month waiting period.
The new requirements will apply only to projects that receive construction permits after the law comes into force.
