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Uzbek
The People’s Democratic Party of Uzbekistan (PDPU) has proposed a new approach to protecting citizens’ rights when purchasing housing — implementing a system in which developers will receive payment for apartments only after the building has been fully completed and handed over. This initiative aims to solve several pressing issues, including the sale of illegally and poorly constructed apartment buildings, transferring apartments without the necessary cadastral documents, and constant delays in commissioning the properties.
Problems in the Real Estate Market
In recent years, Uzbekistan has seen rapid growth in the construction of multi-apartment buildings. However, despite the increase in new residential complexes, there has been a rise in cases of developers neglecting their responsibilities. Some of the main issues include:
- Transfer of housing without cadastral documents: Many citizens face difficulties in registering ownership of their apartments due to the lack of cadastral paperwork.
- Sale of poorly constructed homes: Many buildings under construction do not meet the declared quality standards.
- Constant delays in housing delivery: Numerous projects are delayed for months, even years, leaving buyers in limbo.
- Poorly functioning infrastructure: In some buildings, elevators do not work, water supply is inadequate, and power outages occur frequently.
PDPU’s Solution: The Escrow Account System
To protect citizens from these situations, the PDPU has proposed implementing an escrow account system. This system ensures that the money citizens pay for apartments is held in a special bank account until the developer fulfills all obligations and the building is completed.
How It Works:
- The buyer transfers money to the escrow account, but these funds remain frozen until the construction company completes all work and hands over the property to the buyer.
- The construction company cannot access the funds until the building is fully finished.
- If the developer fails to meet their obligations, the money stays with the buyer, eliminating the risk of financial loss.
This approach minimizes risks for buyers, protects them from potential bankruptcy or fraud by the construction company, and motivates developers to complete their work on time.
Advantages of the New System
- Protection of citizens’ rights: Buyers will be assured that their money is secure and will only be released to the developer after the construction is finished.
- Quality control: Construction companies will be more responsible in managing the building process, ensuring there are no delays or use of substandard materials.
- Reduction of dishonest developers: Companies that previously engaged in fraudulent schemes or poor-quality construction will find themselves at a disadvantage.
The PDPU’s proposal has garnered positive feedback from citizens who have long struggled with issues related to purchasing property. Many believe that the new escrow account system will be a significant step toward improving the situation in the real estate market.
If this initiative is adopted, buying real estate in Uzbekistan will become much safer, which, in turn, will boost citizens’ trust in developers and stabilize the country’s housing market.
The text has been translated by AI. For more accurate information, please refer to the Russian version of the article
