The Urbanization Committee commented on citizens becoming victims of fraud
Cases of the activities of certain construction companies, violation of housing handover deadlines, and non-refunding of funds to buyers are being encountered.
The Urbanization Committee commented on citizens who are becoming victims of fraud
The National Committee for Urbanization and Sustainable Housing Market Development expressed its stance regarding this issue.
The Committee considers it a completely unacceptable situation when citizens who have invested money for housing purchases are left without the promised apartments and without the possibility of getting their money back.
In order to prevent such situations, it is planned to introduce an escrow account system within the framework of the draft law "On the construction of apartment buildings and other real estate objects on a shared-equity basis," which is currently being considered in the Legislative Chamber of the Oliy Majlis. This mechanism envisages placing buyers' funds into special bank accounts and transferring them to developers only after specified conditions are met. This will serve to significantly reduce the risk of fraud and the misuse of citizens' funds.
The escrow mechanism also aims to ensure the continuity of construction, including providing the possibility of quickly bringing in another developer if serious problems arise during project implementation. This ensures the completion of construction even if the developer is unable to fulfill their obligations.
"The National Committee believes that reliable protection of buyers' funds, unconditional fulfillment of obligations by developers, and the creation of transparent and equal conditions for honest market participants should be the foundation of housing construction," the report states.