Currently, the real estate market in Kazakhstan is growing, as is the population growth in large cities of our country.
When solving the housing issue, equity participation in housing construction is becoming an increasingly popular way of acquiring housing in Kazakhstan. This method attracts Kazakhstanis with its main advantage – a more affordable price compared to ready-made real estate. The difference in the cost of housing at the initial stage of construction and the finished object is on average 20-30%.
However, despite the favorable conditions for the purchase of housing, every potential buyer should know that developers can raise funds only after obtaining the permission of the local executive body or the guarantee of JSC "Kazakhstan Housing Company". Such requirements are defined by the Law of the Republic of Kazakhstan "On Equity Participation in housing Construction". At the same time, an agreement on equity participation in housing construction (DDU) must be concluded with the buyer without fail. This should be known before signing any documents with the developer, as some companies attract citizens' funds by illegal means, such as the conclusion of booking agreements, pre-sale, investment, and so on. These types of contracts do not provide a guarantee of obtaining housing.
In addition to this, there is a significant risk of double sale of one housing, since there is no centralized accounting of concluded contracts. To eliminate the risk of double sales in shared-equity construction, a unified information system "Kazreestr" has been created. Here, developers register equity participation agreements, amendments and additions made to them.
The equity participation agreement must contain full information about the housing facility, including information about construction permits, planning documentation, technical conditions, completion dates, housing costs and payment procedure.
In accordance with the legislation of the Republic of Kazakhstan , equity participation is organized in three ways:
1) obtaining a guarantee of a Single operator (the developer is obliged to conclude a guarantee agreement with a single operator of JSC "Kazakhstan Housing Company");
2) participation in the second-tier bank project;
3) attracting money from shareholders after the construction of the frame of an apartment building (the developer must obtain permission from the local executive body to attract funds from shareholders).
This Law regulates public relations related to the activities of equity participation in the housing construction of apartment buildings by attracting money from individuals and legal entities, and also establishes guarantees for the protection of the rights and legitimate interests of the parties to the contract on equity participation in housing construction.
In order to warn potential buyers, when concluding a contract, it is necessary to make sure that all permits are available to attract funds from shareholders, as well as for the construction of the facility.
A more detailed study of the Law "On Equity Participation in Housing Construction" will allow investors to familiarize themselves with the rights to participate in equity construction and obligations on the part of the developer.
Additionally, we inform you that today the developers represented by LLP "Royale Finance Group" (LCD "Emeralds"), LLP "MRS Company" (LCD "Grand Residence"), LLP "Deineka" (LCD "Deluxe Town"), LLP "Elit Stroy Group" (LCD "Renesans") for advertising related to the organization of equity participation in housing construction, by the resolution of the specialized court for administrative offenses of the city of Ust-Kamenogorsk, they were brought to administrative responsibility under Part 1 of Article 320 of the Administrative Code of the Republic of Kazakhstan.