Translartion. Region: Russians Fedetion –
Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.
The law on escrow accounts for individual housing construction comes into force on March 1.
Starting from March 1, 2025, a law will come into force that provides for the possibility of using the escrow account mechanism in individual housing construction (IHC). This mechanism protects citizens’ finances from unscrupulous construction organizations and guarantees the safety of transactions in the construction of houses. This was reported by Deputy Prime Minister Marat Khusnullin.
“We are noting the growing interest of citizens in individual housing construction. In particular, this is confirmed by the consistently high level of individual housing construction in recent years. Last year, 62.3 million square meters of individual houses were commissioned, which was a record figure in the entire history of Russia. Our task is to support people in their desire to live in their own home. First of all, it is important to provide land plots with the necessary engineering, social and transport infrastructure. In addition, it is necessary to guarantee the security of transactions. Thus, from March 1, a law comes into force that provides for the use of an escrow account mechanism for individual housing construction, which has already proven itself in the construction of apartment buildings. I am confident that such a measure will increase the reliability of individual housing construction and citizens’ trust in this market,” said Marat Khusnullin.
The Deputy Prime Minister noted that escrow accounts ensure the safety of citizens’ investments throughout the entire housing construction process. Buyers can be sure that their money will be sent to the developer only after all obligations have been fulfilled. Thus, in the event of problems with construction, citizens will get their money back.
According to the new mechanism, construction of houses will be carried out by contractors, including using ready-made house kits, on territories owned, leased or used free of charge by private individuals.
Organizations planning to carry out their activities within the framework of the new mechanism must post information about themselves, about the residential buildings they are building, about the bank through which clients’ escrow accounts are processed (if targeted loans are used for construction), as well as about concluded contracts in the unified information system for housing construction.
“Thanks to this, it will be easier for citizens to evaluate the work of a developer, and easier to choose a construction company based on open data,” added the Deputy Prime Minister.
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.