Article 16. Liability of the parties under the agreement on shared participation in housing construction The Law on Equity Participation in Housing Construction

Home / RLA / Article 16. Liability of the parties under the agreement on shared participation in housing construction The Law on Equity Participation in Housing Construction

 1. The authorized company is responsible for ensuring control over the progress and quality of construction.

IZPI's note! The first paragraph of paragraph 2 is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

2. The authorized company, on the terms defined in the agreement on equity participation in housing construction, disposes of the money deposited for the construction of an apartment building or a complex of individual residential buildings and is responsible, or a complex of individual residential buildings of the Republic of Kazakhstan or an agreement on equity participation in housing construction, for:

1) targeted and timely use of shareholders' money;

2) compliance with the requirements of regulatory and technical documents during the construction of the facility;

3) the quality of the building materials, structures, equipment used and the conduct of construction and installation work;

4) deadlines for the commissioning of the facility;

5) transfer of his share to the shareholder.

3. The authorized company is responsible for selecting the contractor (general contractor) based on the submitted qualification requirements.

4. The authorized company is obliged to notify the shareholder by mail about the non-payment of the next payment. Such notification must be made by registered mail with an inventory of the attachment or delivered to the shareholder personally against receipt.

In order to recognize the fact of a shareholder's refusal to fulfill contractual obligations, it is necessary to establish the presence of at least three notifications of non-payment (payments) with a total delay in payment (payments) of at least three months.

5. In case of non-payment by the shareholder of the next payment and the absence of a written request within the period specified in paragraph 4 of this article, according to the terms of the agreement on equity participation in housing construction, the authorized company has the right to make one of the following decisions:

1) accept financing (money) from a third party to pay for such a share, followed by assistance in processing the assignment of the right of claim (with the return of the deposited money to the former shareholder);

Note from <url>! Subparagraph 2) is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

2) terminate the contract and sell the share to a third party and, within three months from the date of acceptance of an apartment building or a complex of individual residential buildings into operation, return the proceeds from the sale to the shareholder or ensure their storage in a bank account until the former shareholder applies for them.

Note from <url>! Article 16 is provided to be supplemented by paragraph 6 in accordance with the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective six months after the date of its first official publication).

6. An authorized company is prohibited from accepting payment for a share in an apartment building or a complex of individual residential buildings in cash from shareholders.

The Law of the Republic of Kazakhstan dated April 7, 2016 No. 486-V SAM.

This Law regulates public relations related to the activities of equity participation in the housing construction of multi-family residential buildings by attracting money from individuals and (or) legal entities, and also establishes guarantees for the protection of the rights and legitimate interests of the parties to the agreement on equity participation in housing construction.

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Republic of Kazakhstan

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