How to Safely Buy an Apartment in a New Building: A Guide for Citizens

Purchasing an apartment during the construction phase requires careful scrutiny of documents and the terms of the deal. In Kazakhstan, the attraction of public funds for the construction of multi-apartment residential buildings is regulated by the Law of the Republic of Kazakhstan 'On Shared Participation in Housing Construction'. Before you invest any money, ensure that your chosen project is being legally executed.

Methods of Raising Funds

Funds from citizens may be attracted based on one of the following grounds:

• guarantee from the Single Operator;
• participation of a second-level bank in the project implementation;
• attracting funds from shareholders after the framework of the multi-apartment residential building is erected.

If the developer does not have a legal basis for attracting funds, you should not pay for an apartment in a building under construction.

What to Check Before Buying?

Verify the following:

• The developer and the project. Investigate the company's information, the residential complex, and the documents related to its construction.
• Basis for attracting funds. Ensure the project is being implemented using one of the legally sanctioned mechanisms.
• Agreement. Carefully review the terms: the cost of the apartment, payment procedure, construction timelines, transfer of housing, and the rights and responsibilities of the parties.
• Registration of the agreement. The shared participation agreement must be registered in the prescribed manner.

Pay Attention to the Form of Agreement

When buying an apartment, preliminary agreements, reservation agreements, investment agreements, and other documents may be offered. The title of the agreement does not determine the legality of the deal. If the document is actually used to attract public money for the construction of a multi-apartment residential building circumventing the established legal mechanisms, such a scheme is not allowed.

Where to Verify Information?

Before finalizing a deal, it is recommended to check information about the residential complex and the developer through official digital services. Information about residential properties is available on Homeportal.kz. You can also verify details through the appropriate state digital services like eGov, Halyk, Alatau, BCC, and Eurasian Bank.

Liability for Illegal Fund Attraction

For violating the legislative requirements, administrative liability is provided:

• individuals — 200 MRP;
• small business entities — 500 MRP;
• medium business entities — 750 MRP;
• large business entities — 1,000 MRP;
• for repeated offenses by large business entities — 2,000 MRP.

Pre-Payment Checklist

• Developer and residential complex verified
• Legal basis for attracting funds established
• Agreement reviewed
• Shared participation agreement registered
• Payment procedure aligns with agreement terms

The main rule: verify first, then pay. Checking information and documents before concluding the transaction can help reduce risks when purchasing an apartment in a building under construction.

reports ЖКХ24, citing the Website of the Committee for Construction and Housing and Communal Services of the MPS RK.

Photo: gov.kz