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LAW OF THE REPUBLIC OF KAZAKHSTAN

of April 7, 2016 No. 486-V ZRK

About equity in house construction

(as amended on 27-12-2019)

This Law governs the public relations connected with activities for equity in house construction of apartment apartment houses due to fund raising of physical and (or) legal entities and also establishes guarantees of protection of the rights and legitimate interests of agreement parties about equity in house construction.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) guarantee - the obligation of Fund of guaranteeing house construction for the organization of completion of construction of the apartment apartment house in case of approach of warranty case and transfer of share in the apartment apartment house to shareholders under agreements on equity in house construction;

2) warranty case - the event or set of events determined by this Law with which approach at Fund of guaranteeing house construction arise the obligation on completion of construction of the apartment apartment house and responsibility to shareholders under the agreement on provision of a guarantee for equity in house construction;

3) the guarantee fee - the amount of money paid by the authorized company to Fund of guaranteeing house construction under the agreement on provision of a guarantee for equity in house construction;

4) warranty period - the useful life of construction objects of the apartment apartment house established according to the Civil code of the Republic of Kazakhstan and the legislation of the Republic of Kazakhstan on architectural, town-planning and construction activities throughout which the builder, the authorized company and the contractor (prime contractor) guarantee preserving quality of indicators of the apartment apartment house built and put into operation according to the design estimates and the agreement on equity in house construction;

5) the condition suspensive - condition or set of conditions with which approach the parties have rights and obligations according to the trust management agreement of voting shares (shares in the authorized capital) the authorized company in case of approach of warranty case;

6) share in the apartment apartment house - the apartment or the non-residential premise transferred to the shareholder to the agreement performance about equity in house construction which is part of the built apartment apartment house;

7) the project cost of the apartment apartment house (further - project cost) - the cost of building and construction works, costs for project management, author's and technical supervisions, remuneration on loans and other expenses provided by this Law;

8) framework of the apartment apartment house - the bearing system (skeleton) perceiving loadings and impacts providing durability, the rigidity and stability of the apartment apartment house having load-carrying structures, designs of overlappings and covering;

9) Fund of guaranteeing house construction (further - Fund of guaranteeing) - the non-profit organization in form of business of joint-stock company with direct or indirect participation of the state in the authorized capital guaranteeing completion of construction and transfer of share in the apartment apartment house to shareholders in case of approach of warranty case;

10) equity in house construction - the relations of the parties based on the agreement on equity in house construction;

11) the agreement on provision of a guarantee for equity in house construction (further - the agreement on provision of a guarantee) - the agreement signed between Fund of guaranteeing, the builder and the authorized company according to the procedure and on the conditions determined by this Law;

12) participants of equity in house construction - the builder, the authorized company, the contractor (prime contractor), bank of the second level, engineering company, Fund of guaranteeing and the shareholder;

13) engineering company in the field of equity in house construction (further - engineering company) - the legal entity performing engineering services in the field of architecture, town planning and construction, accredited in the procedure established by the legislation of the Republic of Kazakhstan and conforming to requirements of this Law;

14) engineering services in the field of equity in house construction - complex of engineering services in the field of architectural, town-planning and construction activities, including for monitoring of the course of construction of the apartment apartment house and control of target use of the money directed to construction of the apartment apartment house;

15) the builder in the field of equity in house construction (further - the builder) - the legal entity performing activities for the organization of equity in house construction of apartment apartment houses by own and (or) attracted money by means of participation in the authorized capital of the authorized company;

16) authorized body in the field of equity in house construction (further - authorized body) - the central executive body performing management and also within the competence cross-industry coordination in the field of equity in house construction;

17) the agreement on equity - the agreement signed between the authorized company and the shareholder, regulating the legal relationship of the parties connected with equity in house construction in case of which one party shall provide construction of the apartment apartment house and transfer in house construction upon completion of construction to the second party share in the apartment apartment house, and the second - to make payment and to accept share in the apartment apartment house;

18) the authorized company - the legal entity, hundred percent of voting shares (shares in the authorized capital) which belong to the builder, performing activities for ensuring shared-equity construction of the apartment apartment house and realization of shares in the apartment apartment house which has no right to be engaged in any other business activity, except for activities in special economic zones;

18-1) authorized organization - the legal entity, hundred percent of voting shares (shares in the authorized capital) which directly or indirectly belong to the state, performing activities for ensuring completion of problem objects of house construction in the capital, the cities of republican value or other administrative and territorial units within state programs of house construction;

19) the shareholder - physical person (except for temporarily staying foreigners) or the legal entity who signed the agreement on equity in house construction for the purpose of receipt of share in the apartment apartment house;

20) low-rise construction - low apartment apartment houses no more than three elevated floors high (without penthouse), including the blocked apartment apartment houses, each of which has direct exit to the prikvartirny site.

Article 2. The legislation of the Republic of Kazakhstan on equity in house construction

1. The legislation of the Republic of Kazakhstan on equity in house construction is based on the Constitution of the Republic of Kazakhstan and consists of the Civil code of the Republic of Kazakhstan, this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. The legislation of the Republic of Kazakhstan on the housing relations and on architectural, town-planning and construction activities extends to the equity relations in house construction in the part which is not settled by this Law.

3. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which contain in this Law then are applied rules of the international treaty.

Article 3. Coverage of this Law

1. This Law extends to the relations in case of which one party shall provide construction of the apartment apartment house and transfer upon completion of construction to the second side of the apartment or non-residential premises in the apartment apartment house, and the second - to make payment and to accept apartments or non-residential premises in the apartment apartment house.

2. Fund raising of physical persons and legal entities for construction of apartment apartment houses in defiance of the requirements established by this Law is forbidden. The transaction on fund raising of physical persons and legal entities for construction made in defiance of requirements of this Law is recognized invalid.

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