RUS GVT Residential Construction Law

Published on: Sep 30, 2024

On Jul. 22, RUS GVT issued law on residential buildings construction.

  • RUS GVT issued law 187-FZ on amendments to certain legislative acts of the Russian Federation in connection with the adoption of the federal law on the construction of residential buildings under construction contracts using escrow accounts.
  • Document dated Jul. 22, 2024, was added on Sep. 30, 2024 due to editorial backfill.
  • Key Points
  • The law introduces amendments to legislative acts concerning use of escrow accounts construction of individual residential buildings under contracts involving citizen money.
  • Specifically for funds in escrow are insured from the date of their placement until three months after the posting of registered ownership in the Unified Information System of Housing Construction, or until the expiration of the conditional deposit term.
  • Also, the law establishes that compensation is paid in the amount of 100% of the escrow account's balance, but there is a compensation limit capped at 10mn RUB.
  • Deposit Insurance Agency must transfer the money within 20 days after application.
  • Maternity capital funds can be used through the escrow mechanism for house construction, with the possibility of refunding such funds if the contract is terminated.
  • Contractors are able to submit urban planning documents to government bodies and receive necessary approvals ( notifications about planned or completed construction).
  • Effectiveness
  • The law enters into force on Mar. 1, 2025.
Regulators
RUS GVT
Entity Types
CNSM; Corp; Depo
Reference
OG, Law 187-FZ, 7/22/2024,
Functions
Compliance; Legal; Operations; Risk
Countries
Russia
Category
State
N/A
Products
Corporate; Deposits; Payments
Rule Type
Final
Regions
EMEA
Rule Date
Jul 22, 2024
Effective Date
Mar 1, 2025
Rule ID
227722
Linked to
N/A
Reg. Last Update
Jul 22, 2024
Report Section
International