Article 19. Features of the organization of equity participation in housing construction The Law on Equity Participation in Housing Construction

Home / RLA / Article 19. Features of the organization of equity participation in housing construction The Law on Equity Participation in Housing Construction

Note from <url>! Paragraph 1 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).

1. The risk of an accidental increase in the cost of construction and installation works of an apartment building or a complex of individual residential buildings shall be borne by the contractor (general contractor), with the exception of the case provided for in paragraph 2 of this Article.

2. The contractor (general contractor) has the right to request a revision of the estimate if, for reasons beyond his control, the cost of construction and installation work exceeded the estimate by at least ten percent. In this case, the risk of an accidental increase in the cost of construction and installation work in an amount exceeding ten percent of the estimate is borne by the authorized company.

3. Payments for the work performed by the contractor (general contractor) under the contract in accordance with the design and estimate documentation are made from the bank account of the authorized company on the basis of certificates of completed work, confirmed by the engineering company.

Advance payment of payments to the contractor (general contractor) under the contract is allowed in accordance with the design and estimate documentation of construction when using the money of shareholders from the bank account of an authorized company, subject to one of the following conditions:

Note from <url>! Subparagraph 1) 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).

1) must not exceed fifty percent of the value of the contract with an authorized company, provided that there is an unconditional and irrevocable guarantee from the second-tier bank for the repayment of the advance payment, which ensures the proper fulfillment of the contractor's (general contractor's) obligations;

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) not more than twenty percent of the amount of the contract with an authorized company without collateral.

Subsequent payment of payments for the work performed by the contractor (general contractor) shall be made in accordance with the procedure established by Article 20 of this Law.

Note from <url>! Paragraph 3 is provided to be supplemented with Part four 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).

Payments in favor of the contractor (general contractor) are subject to payment less a portion of the advance amount proportional to the ratio of the value of the contract to the amount of the payment paid in favor of the contractor (general contractor).

IZPI's note! Paragraph 4 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).

4. The use of shareholders' money is carried out by an authorized company for the purpose of building an apartment building or a complex of individual residential buildings, taking into account the requirements provided for in Article 20 of this Law.

5. The owner of the unfinished construction is an authorized company.

6. Civil law transactions with unfinished construction under other obligations of the developer and the authorized company, except for attracting a bank loan and obtaining a guarantee from a Single Operator, are prohibited.

Note from <url>! Paragraph 7 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).

7. During the warranty period, the contractor (general contractor), the developer and the authorized company guarantee the preservation of the quality of the indicators of an apartment building or a complex of individual residential buildings specified in the design and estimate documentation, and the possibility of operating an apartment building or a complex of individual residential buildings in accordance with the agreement on equity participation in housing construction.

8. The developer and the authorized company are required to audit the annual financial statements.

Note from <url>! Paragraph 9 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).

9. An authorized company is obliged to sell a unit area of a share in an apartment building or a complex of individual residential buildings at least at a cost determined by the ratio of the design cost to the total area of an apartment building or a complex of individual residential buildings.

10. The developer bears subsidiary responsibility to the shareholders under the obligations of the authorized company.

Note from <url>! Paragraph 11 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).

11. Non-fulfillment or improper fulfillment by an authorized company of obligations to complete the construction of an apartment building or a complex of individual residential buildings is a violation of the deadline for commissioning an apartment building. It is allowed to extend the construction period three times for three months each from the period specified in the design and estimate documentation of the construction site or a complex of individual residential buildings.

It is allowed to postpone the period of commissioning of an apartment building or a complex of individual residential buildings for no more than five months from the period specified in the design and estimate documentation of the construction site.

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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