Legislative Chamber approves law introducing escrow accounts for housing construction

The bill, titled “On the construction of apartment buildings and other real estate through shared participation,” was passed in its second and third readings on November 10 and sent to the Senate for consideration.

The legislation sets out the rights and obligations of developers, investors, government agencies and other participants in shared-equity construction projects.

Under the proposed system, developers will receive buyers’ funds only after completing construction in accordance with established requirements and obtaining approval to put the property into operation.

To attract money from buyers, developers will have to meet statutory requirements, register in the Unified Information System, sign a general agreement with an authorized bank and publish a project declaration.

Notarized contracts and buyer protection

Shared-equity participation agreements will have to be notarized and registered with the state authorities. Any amendments or additions to these contracts will also require notarization.

The requirement is intended to prevent properties from being sold to multiple buyers and developers from changing contractual terms through informal supplementary agreements.

If a developer raises funds in violation of the law, investors will be entitled to demand their money back, along with interest for its use.

The bill also provides mechanisms to keep construction projects moving if problems arise, including the possibility of replacing the authorized bank or developer and arrangements to ensure uninterrupted project financing.

Changes to rules on troubled construction projects

The bill was revised following its first reading, which took place on July 28, 2026.

Among the changes, lawmakers removed the requirement to wait an additional six months before classifying a project as troubled when the developer misses the deadline for handing over a property.

The legislation also prevents developers from being removed from the register of troubled projects simply by paying compensation without first addressing construction defects.