RESOLUTION OF THE PLENUM OF THE SUPREME COURT OF THE KYRGYZ REPUBLIC

of October 3, 2025 No. 26

About court practice on the civil, economic cases connected with consideration of disputes in the field of equity in construction of the apartment apartment house

Studying of court practice on the civil, economic cases connected with shared-equity construction of apartment housing showed that by consideration of disputes of the called category there are questions of rather legal nature of agreements of equity in construction of the multi-storey apartment houses signed between shareholders and builders, and also termination of the specified agreements at different stages of construction of the apartment apartment house.

For the purpose of the correct and uniform application of the legislation by courts by consideration of the disputes following from agreements on equity in construction of the apartment house, the Plenum of the Supreme Court of the Kyrgyz Republic, being guided by part 3 of article 98 of the Constitution of the Kyrgyz Republic, article 18 of the constitutional Law of the Kyrgyz Republic "About the Supreme Court of the Kyrgyz Republic and local courts", decides:

1. Explain to courts that under the agreement of equity in construction of the apartment apartment house one party the customer (builder) shall in time, provided by the agreement of equity in construction, by own efforts with attraction of financial resources of other party (shareholder) to construct (to create) the apartment house and/or other real estate object and after receipt of permission to commissioning of these objects to transfer the corresponding object of shared-equity construction to the participant of shared-equity construction (shareholder) who shall pay the price caused by the agreement of shared-equity construction and accept object of shared-equity construction in property.

The customer (builder) has the right to sign contracts with participants of shared-equity construction for attraction of money for construction of the apartment house after inclusion it and construction object in the Register of objects under construction which maintaining is performed by authorized state body - the State agency of architecture, construction and housing and communal services under the Cabinet of Ministers of the Kyrgyz Republic.

The agreement of equity in construction of the apartment house is signed in writing, shall be notarially certified and undergo state registration in authorized state body in the field of registration of the rights to real estate and transactions with it (Art. 66 of ZhK KR).

The agreement shall contain the following essential conditions:

1) the data on construction object according to the construction project which are subject to construction and transfer to the shareholder of specific subject of construction object (the address, number of the residential or non-residential premise) with indication of features of construction, the area, the characteristic of construction object and data on full or partial implementation of finishing work;

2) bank details and bank account number of the customer (builder);

3) completion date of agreement obligations;

4) construction object subject cost;

5) the size, the schedule, transfers by the client of money or cash deposit of money on the bank account of the customer (builder);

6) warranty period of operation of construction object;

7) rights and obligations of the Parties;

8) procedure for change of terms of the contract;

9) procedure for acceptance transfer of subject of construction object;

10) term of commissioning of construction object;

11) the obligation of the customer (builder) to transfer to shareholders the ownership regarding construction object which quality conforms to terms of the contract, to requirements of regulating technical documents, the project of construction object and other documentation;

12) the agreement cancelation bases before the expiration of the term of its execution established by the agreement;

13) procedure for return of money to the shareholder in case of agreement cancelation before the expiration of the term of its execution established by the agreement;

14) responsibility of the parties for non-execution or improper execution of agreement obligations;

15) vis major.

At the discretion of the parties the agreement can include other additional terms corresponding to regulatory legal acts of the Kyrgyz Republic.

2. Courts should mean that, according to regulations of the Civil code on freedom of the agreement (Art. 382 of KR Group) the builder raises money for asset construction by the conclusion of different agreements including the provisional agreement.

The main difference of the provisional agreement from the agreement of equity in construction is that primary obligation of the builder according to the provisional agreement is to sign the basic agreement in the future, but not to construct and transfer object. The provisional agreement of participation in shared-equity construction does not undergo the procedure of state registration.

The provisional agreement is signed in the form established by the legislation for the basic agreement. In the provisional agreement the time in which the parties shall sign the basic agreement shall be specified. If such term in the provisional agreement is not determined, then the agreement provided by it is subject to the conclusion within year from the moment of the conclusion of the provisional agreement (Art. 388 of KR Group).

Under the agreement of equity in construction the builder shall construct and transfer to the shareholder to the possession object (apartment). The agreement of participation in shared-equity construction, unlike the provisional agreement, is subject to state registration. If concerning the builder insolvency proceeding is initiated, this apartment will not be included into competitive weight (unlike the apartment according to the provisional agreement).

3. In construction of the apartment house after its conclusion in the consent of the parties changes and (or) additions according to the procedure, provided by the civil legislation of the KR can be made to the agreement on equity. In such cases supplementary agreements to the agreement on equity in construction of the apartment house are also subject to state registration in authorized body in the field of registration of the rights to real estate and transactions with it.

Courts should pay attention that in case of availability in the provisional agreement of the conditions characteristic of agreements of equity in construction (starting date and/or completion of asset construction, the payment schedule for real estate unit, lack of the rights per unit of the real estate at the builder, etc.), the provisional agreement is recognized the agreement of participation in shared-equity construction which is subject to state registration.

4. By consideration of disputes over questions of shared-equity construction of housing courts need to determine correctly the list of persons participating in case taking into account nature of claims. In consideration of the specified category of cases those persons whose interests can be infringed by court resolution on the considered dispute shall be attracted to participate.

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