Deputies of the Legislative Chamber of the Oliy Majlis have thoroughly reviewed a draft law titled "On the construction of apartment buildings and the simplification of recognizing facilities as problematic." This comprehensive legislative initiative aims to regulate complex relations within the construction sector, specifically focusing on multi-apartment residential buildings and other real estate developments funded through shared-construction participation. The document clearly delineates the rights, obligations, and authorities of all participants in the construction process, alongside state regulatory bodies.
Key Takeaways: Starting January 1, 2026, the attraction of funds from housing co-investors will be conducted exclusively via escrow accounts under presidential decree. The draft law establishes robust legal mechanisms, mandatory notarization of contracts, and strict safeguards to protect citizens' investments from fraudulent developers.
The introduction of this regulatory framework addresses persistent systemic vulnerabilities within the domestic construction market, where citizens have historically faced risks such as double-selling of properties and illegitimate contractual arrangements. Under the newly proposed rules, developers will no longer have direct access to buyers' cash deposits. Instead, funds will remain sequestered in designated bank escrow accounts and will only be disbursed to the developer after construction is successfully completed and the property is officially commissioned for occupancy.
According to the legislative text, developers will only be authorized to collect public funds if they meet stringent statutory requirements, maintain registration within the Unified Information System, and execute a general agreement with an authorized banking institution. Furthermore, any shared-construction agreement and subsequent amendments must undergo mandatory notarization and state registration. In instances where a developer breaches statutory requirements, co-investors retain the explicit legal right to demand a full refund alongside accrued interest for the utilization of their capital.
Parliamentary members previously conducted extensive on-site inspections across various regional construction projects to evaluate practical challenges and gather direct feedback from both co-investors and industry representatives. Drawing from international best practices, the draft removes the requirement to wait an additional six months before designating a delayed project as problematic. Additionally, developers are explicitly barred from removing a problematic asset from the official registry merely by paying financial compensation without rectifying underlying construction defects.
Upcoming legislative stages will involve further refinements to the bill based on stakeholder feedback, with the ultimate objective of establishing a modernized, transparent, and highly accountable housing construction ecosystem across the country.
Source: uznews.uz