Shavkat Mirziyoyev reviewed proposals on guaranteeing citizens' funds during housing construction on December 12, the presidential press service reported.
By the end of this year, it is expected that 100,000 apartments will be put into operation, and an additional 120,000 are planned for construction by 2025. However, the lack of an organized and transparent payment system is leading to an increase in unscrupulous developers, it was noted at the meeting.
Many buyers are transferring money directly to developers bypassing banks, and participation agreements are often not officially registered. This creates problems for buyers when the deadlines for property delivery are postponed along with the freezing of funds.
The introduction of an escrow system is aimed at resolving these issues. For each construction project, a separate escrow account will be opened in a commercial bank under a contract with the customer.
Banks will be able to provide the customer with loans at a reduced rate based on the funds collected in the escrow accounts. After the construction is completed, the funds from the escrow account will be transferred to the developer.
If the company fails to meet its obligations, the funds will be returned to the owner. The funds in the escrow account cannot be seized.
“The president approved the proposals and instructed to develop the legal framework for the system,” the statement said. It was also ordered to integrate escrow accounts into the work of related agencies in the construction sector.
Plans to introduce the escrow system based on foreign experience were first reported in September. It is planned to test it in Samarkand, Yangihayot, and Sergeli districts of Tashkent.
Experts interviewed by Spot noted several potential challenges in implementing escrow accounts. These include the lack of a legislative framework, increased costs for developers, and the price per square meter. However, this step will enhance the security and transparency of transactions, as well as the accountability of developers.
Earlier, Spot reported that a three-story eco-market is planned to be built on the site of the Yunusabad Dehkan market.