Now money will not be given directly to the builder. The participant's funds will be kept in a bank escrow account until the house is delivered.

An escrow account system is being introduced in shared construction in Uzbekistan. According to the new mechanism, citizens' funds will be kept in an authorized bank until the end of construction and transferred to the builder only after the house is handed over.

An escrow account system is being introduced in Uzbekistan for the shared construction of multi-apartment buildings and other real estate objects. This mechanism is considered a modern financial standard aimed at protecting the funds of participants.

Why is the escrow system being introduced?

According to the new procedure, funds paid by the participant will not be transferred to the builder at the time of signing the contract. They will be kept in a special escrow account at an authorized bank. The builder will acquire these funds only after the object is fully completed and handed over to the buyer.

How does the system work?

In shared construction, the builder will cover project costs not directly from the participants' funds as before, but at the expense of their own funds and bank financing. Control over the targeted spending of funds during the construction process will be strengthened.

Thus, citizens' funds will be fully protected — neither the builder nor third parties will be able to use them until the construction is completed.

A different mechanism introduced from April 1

Another financial instrument introduced into practice on April 1 — escrow accounts for finished real estate and vehicles — is also being discussed. In this case, funds are transferred to the seller after the contract is notarized.

The escrow system in shared construction differs from this, providing for the retention of funds in the bank until the object is fully delivered.

Impact on the market

According to experts, the new system:

• reduces fake and risky construction projects;

• limits cases of fraud;

• ensures price stability;

• strengthens financial discipline;

• increases buyer confidence.

Key advantages for the buyer

• protection of funds

• guarantee of refund

• fully formalized documents

• control over the construction process

The escrow system is evaluated as a new safe financial mechanism protecting the interests of citizens in the housing market.