Article 1. The basic concepts used in this Law of the Law On Equity Participation in Housing Construction

Home / RLA / Article 1. The basic concepts used in this Law of the Law On Equity Participation in Housing Construction

The following basic concepts are used in this Law:

IZPI's note! Subparagraph 1) is provided for in the wording of 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) a complex of individual residential buildings – detached buildings in the amount of at least fifty, intended for personal (family) living, with a height of no more than three floors, taking into account the attic and ground floor, the construction of which is provided for in the design and estimate documentation;

IZPI's note! Article 1 is provided to be supplemented with subparagraph 1-1) in accordance with 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).

1-1) guarantee – the obligation of a Single housing Construction Operator to organize the completion of an apartment building and (or) a complex of individual residential buildings upon the occurrence of a guarantee event and the transfer of a share in an apartment building and (or) a complex of individual residential buildings to shareholders under equity agreements in housing construction;

IZPI's note! 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) guarantee event – an event or a set of events defined by this Law, upon the occurrence of which a Single Housing Construction Operator has an obligation to complete the construction of an apartment building and (or) a complex of individual residential buildings and responsibility to shareholders under a contract for the provision of guarantees of equity participation in housing construction;

3) guarantee fee – the amount of money paid by an authorized company to a Single housing construction operator under a contract for the provision of a guarantee of equity participation in housing construction;

IZPI's note! Subparagraph 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) Warranty period – the period of operation of multi-apartment residential building construction facilities and (or) a complex of individual residential buildings established in accordance with the Civil Code of the Republic of Kazakhstan and the legislation of the Republic of Kazakhstan on architectural, urban planning and construction activities, during which the developer, The authorized company and the contractor (general contractor) guarantee the preservation of the quality of the indicators of an apartment building built and put into operation in accordance with the design and estimate documentation and the agreement on equity participation in housing construction.;

5) suspensive condition – a condition or set of conditions, upon the occurrence of which the parties have rights and obligations under the contract of trust management of voting shares (shares of participation in the authorized capital) of an authorized company upon the occurrence of a guarantee event.;

6) a share in an apartment building is an apartment or non–residential premises transferred to an equity holder in fulfillment of an agreement on equity participation in housing construction, which is part of a built apartment building.; IZPI's note! Subparagraph 6) 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).

IZPI's note! Subparagraph 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) the project cost of an apartment building or a complex of individual residential buildings (hereinafter referred to as the project cost) is the cost of construction and installation work, project management costs, author's and technical supervision, remuneration for loans and other expenses provided for by this Law.;

8) the frame of an apartment building is a load–bearing system (skeleton) that accepts loads and impacts, provides strength, rigidity and stability of an apartment building, having load-bearing structures, floor structures and coatings;

IZPI's note! Article 1 is provided to be supplemented by subparagraph 8-1) in accordance with 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).

8-1) borrowed funds – funds received in the form of a debt obligation, including on the terms of payment, urgency and repayment;

9) excluded by the Law of the Republic of Kazakhstan dated 06/09/2020 No. 341-VI (effective from 07/01/2020);

10) equity participation in housing construction – the relationship of the parties based on the agreement on equity participation in housing construction;

11) an agreement on the provision of a guarantee of equity participation in housing construction (hereinafter referred to as a guarantee agreement) is an agreement concluded between a Single Operator, a developer and an authorized company in accordance with the procedure and on the terms determined by this Law.;

12) participants in equity participation in housing construction – a developer, an authorized company, a contractor (general contractor), a second-tier bank, an engineering company, a single operator and a shareholder;

13) an engineering company in the field of equity participation in housing construction (hereinafter referred to as an engineering company) is a legal entity providing engineering services in the field of architecture, urban planning and construction, accredited in accordance with the procedure established by the legislation of the Republic of Kazakhstan and complying with the requirements of this Law;

IZPI's note! Subparagraph 14) 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).

14) engineering services in the field of equity participation in housing construction – a complex of engineering services in the field of architectural, urban planning and construction activities, including monitoring the progress of construction of an apartment building or a complex of individual residential buildings and monitoring the targeted use of money allocated for the construction of an apartment building;

IZPI's note! Subparagraph 15) 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).

15) a developer in the field of equity participation in housing construction (hereinafter referred to as the developer) is a legal entity engaged in organizing equity participation in the housing construction of multi–family residential buildings at the expense of its own and (or) attracted money through participation in the authorized capital of an authorized company;

16) the authorized body in the field of equity participation in housing construction (hereinafter referred to as the authorized body) is the central executive body responsible for management, as well as, within its competence, intersectoral coordination in the field of equity participation in housing construction;

IZPI's note! Subparagraph 17) 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).

17) an agreement on equity participation in housing construction is an agreement concluded between an authorized company and an equity holder regulating the legal relations of the parties related to equity participation in housing construction, in which one party undertakes to ensure the construction of an apartment building or a complex of individual residential buildings and transfer a share in an apartment building to the other party upon completion of construction, and The second is to make a payment and accept a share in an apartment building.;

17-1) Unified Housing Construction Operator (hereinafter referred to as the Unified Operator) is a mortgage organization with direct or indirect government participation in the authorized capital, the purpose of which is to participate in the implementation of state policy in the field of housing affordability to the population of the Republic of Kazakhstan through mortgage lending and rental housing, the development of shared housing construction, as well as ensuring the availability of financial resources for the construction industry;

IZPI's note! Subparagraph 18) 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).

18) authorized company is a legal entity, one hundred percent of the voting shares (participation shares in the authorized capital) of which belong to the developer, engaged in the provision of shared–equity construction of an apartment building or a complex of individual residential buildings and the sale of shares in an apartment building or a complex of individual residential buildings, which is not entitled to engage in any other commercial activity, except for activities in special economic zones;

18-1) authorized organization is a legal entity, one hundred percent of the voting shares (participation shares in the authorized capital) of which are directly or indirectly owned by the state, which carries out activities to ensure the completion of problematic housing construction projects in the capital, cities of republican significance or other administrative–territorial units within the framework of state housing construction programs.;

18-2) share – an apartment or non-residential premises in an apartment building, or an individual apartment building with a plot of land in a complex of individual residential buildings, transferred to the shareholder in accordance with an agreement on equity participation in housing construction, which are part of a built apartment building or a complex of individual residential buildings;

19) equity holder – an individual (with the exception of temporarily staying foreigners), a legal entity or a person operating in accordance with a joint venture agreement (simple partnership, consortium) who has concluded an equity agreement in housing construction in order to obtain a share in an apartment building or a complex of individual residential buildings;

20) low–rise construction - low-rise multi-family residential buildings with a height of no more than three above-ground floors (excluding the attic), including blockaded multi-family residential buildings, each of which has direct access to the apartment block. IZPI's note! Subparagraph 20) 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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