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The Liberal Democratic Party of Uzbekistan (O’zLiDeP) faction in the Legislative Chamber of the Oliy Majlis has approved a bill that would introduce escrow accounts as the central mechanism for protecting citizens who invest in shared-equity construction, the faction announced on Sunday.
Under the proposed legislation, money paid by homebuyers would be held in banks rather than transferred directly to developers. Construction companies would only receive those funds after a project has been completed in accordance with established requirements and the property has been formally commissioned. The measure is designed to prevent developers from accessing buyer capital before delivering on their obligations — a practice that has left tens of thousands of Uzbek families exposed when projects stall or collapse.
The bill also defines the rights and obligations of all parties in shared-equity construction of apartment buildings and other real estate, sets out the powers of relevant government bodies and establishes procedures for inter-agency cooperation. It explicitly prohibits the raising of funds through methods not provided for by law, closing off informal arrangements that have historically left buyers with little legal recourse.
Parliamentary debate
During the faction’s discussion, MPs Shukhrat Sharafutdinov, Yekaterina Smesova, Dilmurod Artikov and Khusan Yarkulov raised questions about specific provisions of the bill. Representatives of the responsible government agencies provided explanations in response. MP Nurriddin Sultonov commended the relevant committee’s preparatory work ahead of the second reading and urged colleagues to support the legislation. The faction voted to approve it.
The session also took up a separate draft law amending the Urban Planning Code to strengthen the urbanisation sector. MP Odiljon Mamadaliyev said the amendments aim to improve the effectiveness of urbanisation management, ensure balanced territorial development, strengthen inter-agency cooperation and create a more comfortable and environmentally sustainable living environment. The faction supported that bill as well.
Context
Shared-equity construction — in which buyers pay for apartments before or during the building process — has long been a source of legal disputes in Uzbekistan. Regulatory inspections have previously found that contracts between developers and buyers routinely violated consumer rights, and the sector has generated a significant volume of fraud cases. The escrow model, if enacted into law, would align Uzbekistan’s framework more closely with protections that have been standard in several other post-Soviet markets for over a decade.
The bill has now passed the faction stage and is headed for a second reading in the full Legislative Chamber. No timeline for a final vote or presidential signature was specified in the faction’s announcement.