The adoption of an escrow law, planned for January to prevent fraud in housing purchases, has been delayed. According to Sherzod Kudbiyev, Chairman of the National Committee for Urbanization, the document is currently under review in the government, being coordinated with the Ministry of Justice, and may be submitted to the Legislative Chamber in March-April.

Under Presidential Decree No. 11, issued in January last year, an escrow system was supposed to be implemented starting January 1 of this year to strengthen financial discipline in construction and create a safe environment for clients. This meant all developers would be required to execute projects through escrow accounts based on shared equity participation. However, the system has not yet been implemented, despite the decree being issued a year ago.

At a press conference, Kudbiyev explained that the core purpose of escrow is to regulate the attraction of public funds by law. He highlighted numerous unresolved issues in the draft law, such as the percentage developers can take, accountability for missed deadlines, consequences of developer bankruptcy, and interest rates on loans from attracted funds. Kudbiyev stated that rushing the law could lead to criticism, necessitating thorough refinement.

Construction Minister Sherzod Khidoyatov added that the escrow system currently operates on a voluntary basis, but many developers use shared equity participation without transparent mechanisms, potentially including pyramid schemes. He emphasized that making escrow mandatory would regulate these practices. Previously, it was reported that opening escrow accounts would be permitted from July 1, 2025, and become mandatory from January 1, 2026.

Source: kun.uz