Article 3. Scope of this Law The Law on Equity Participation in Housing Construction

Home / RLA / Article 3. Scope of this Law The Law on Equity Participation in Housing Construction

 IZPI's note! 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. This Law applies to relations in which one party undertakes to ensure the construction of an apartment building or a complex of individual residential buildings and, upon completion of construction, transfer to the other party the land in an apartment building or a complex of individual residential buildings, and the second party undertakes to make payment and accept apartments or non–residential premises in an apartment building.

IZPI's note! 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).

The provisions of this Law also apply to relations arising from borrowing by local executive bodies of regions, cities of republican significance, and the capital, in accordance with the Budget Code of the Republic of Kazakhstan.

2. It is prohibited to attract money from individuals, legal entities and (or) persons operating in accordance with a joint venture agreement (simple partnership, consortium) for the construction of multi-apartment residential buildings or a complex of individual residential buildings in violation of the requirements established by this Law. A transaction involving raising money from individuals and legal entities for construction, made in violation of the requirements of this Law, is considered invalid.

The provisions of this paragraph do not apply to the activities of authorized organizations that attract money from individuals and legal entities to complete problematic housing construction projects.

IZPI's note! Paragraph 3 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).

3. The provisions of this Law regarding the conclusion of equity participation agreements in housing construction also apply to contractors of the developer and (or) an authorized company in the case of settlement with them in shares in an apartment building or a complex of individual residential buildings.

4. This Law does not apply to relations related to:

1) public procurement;

2) by investing in housing construction or organizing construction by legal entities whose controlling stake is directly or indirectly owned by the state, without the right to sell apartments and (or) non-residential premises in the construction site before the facility is put into operation, with the exception of a Single Operator and authorized organizations;

3) acquisition of apartments and (or) non-residential premises in an apartment building under construction by legal entities only, without the right to sell (assign claims) to individuals and (or) legal entities apartments and (or) non-residential premises in an apartment building under construction prior to its commissioning; IZPI's note! Subparagraph 3) is provided to be deleted 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) low-rise construction. IZPI's note! Subparagraph 4) is provided to be deleted 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).

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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