Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan's Legislative Chamber has passed a bill regulating the construction of apartment blocks and other real estate through shared investment in its third reading. The document has been sent to the Senate for consideration.
The bill regulates relations between participants in shared construction projects and government bodies, defining their rights, responsibilities and powers. One of its main objectives is to protect the funds of citizens investing in housing construction.
Under the proposed arrangements, investors' funds will be held in escrow accounts at banks rather than transferred directly to developers. The money is expected to be released to construction companies after the project has been completed in accordance with established requirements and the property has been commissioned.
The phased introduction of the escrow account system was предусмотрена by a presidential decree dated 27 January 2025.
From 1 July 2025, the use of escrow accounts to collect funds from investors became voluntary, depending on the choice of the parties. From 1 January 2026, the decree предусмотрел a transition to the exclusive use of escrow accounts.
Under the bill, developers will be allowed to attract funds from citizens only if they meet established requirements, register with the Unified Information System, conclude a general agreement with an authorised bank and publish a project declaration.
Shared construction agreements, along with any amendments and additions, will have to be notarised and registered in accordance with the established procedure. This requirement is intended to prevent the sale of the same property more than once and the conclusion of illegal agreements.
If a developer collects money from citizens in violation of legal requirements, investors will be entitled to demand the return of their funds and interest for their use.
The bill also provides mechanisms to maintain uninterrupted construction financing. Where necessary, it will be possible to replace the authorised bank or the developer. Information about shared construction projects, developers and the progress of construction will be published in the Unified Information System.
During preparations for the bill's second reading, lawmakers examined apartment blocks under construction and held meetings with investors, developers, representatives of the banking sector and other interested parties.
The revised document removes the requirement to wait an additional six months before classifying a property as a problem project when the deadline for handing over housing has been breached.
Developers will also be unable to have a problem project removed from the relevant register simply by paying compensation without addressing the identified shortcomings.
In addition, the revised bill removes vague requirements for businesses to provide "additional information". Deadlines have been established for drafting secondary legislation under more than 10 cross-referenced provisions.
A transitional procedure is предусмотрена under which the law will apply to projects for which construction permits are obtained after the law enters into force.
