Russian homebuyers to be legislatively protected from unscrupulous developers
MOSCOW, June 28 (RAPSI) – President of Russia Vladimir Putin has signed two bills establishing a single mechanism and a procedure of protection of rights of citizens wronged by unfair construction developers into law, according to the presidential press service.
The proposed measures are expected to help complete the construction of troubled building projects in the event of developers’ bankruptcy and protect the rights of housing equity holders.
One of the laws envisages creation of federally and regionally financed regional funds and a compensation fund for the further construction of troubled facilities. Appropriate expenditures will be controlled through a mechanism of mandatory banking support of all debit operations of regional funds.
Another document allows for early termination of civil liability insurance contract for developers and agreements on bank guarantees to homebuyers and delegation of responsibility to the fund.
The State Duma passed the initiatives on June 16. The Federation Council approved it on June 26.