Translartion. Region: Russians Fedetion –
Source: Central Bank of Russia –
Innovations that in law will come into force on March 1, are aimed at protecting the rights of citizens and will contribute to increasing the transparency of the construction industry.
Citizens (customers) using escrow accounts for payments during the construction of a private home will now have the same advantages as when purchasing an apartment in an apartment building under construction:
— the contractor will be able to receive money from the escrow account only after registering the ownership of the constructed house (if for some reason the contractor does not fulfill his obligations, the citizen will receive the money back);
— escrow accounts will be opened only inbanks with sufficient credit rating, and the funds for them will be insured up to 10 million rubles.
Citizens will have the right to refuse to continue construction of a private home and return funds from the escrow account, provided that the contractor is paid for the materials used and the work performed.
It will be possible to receive a preferential “Family Mortgage” for the construction of a private home only if funds for payment under the contract are placed in an escrow account. In this regard, the Bank of Russia expects that the mechanism will be in demand not only by citizens, but also by developers.
Contractors working under the new rules will be required to publish in the Unified Information System for Housing Construction information about the legal entity, about projects of private houses that can be built, with the estimated cost and timeframes for the work, as well as about the authorized bank in which the escrow account is opened.
Preview photo: ANNVIPS / Shutterstock / Fotodom
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