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Economy 23/12/2024 Competition Committee warns about risks when signing housing purchase contracts

Competition Committee warns about risks when signing housing purchase contracts

Tashkent, Uzbekistan (UzDaily.com) —  Since the beginning of this year, the Committee for the Development of Competition and Protection of Consumer Rights of Uzbekistan has received approximately 1,700 complaints regarding the construction of multi-apartment buildings.

As a result of the measures taken, about 20 billion soums were recalculated in favor of consumers, according to the press service of the committee.

An analysis of contracts from 129 construction companies in the country revealed numerous violations. Specifically, in 80% of contracts, the right to recalculation is primarily given to developers, whereas, in only 20% of cases, such terms are provided in the interest of both parties.

In 58% of the documents, there is no clause about recalculation in case discrepancies are found between the declared and actual area after construction is completed. In 37% of contracts, there are no obligations regarding interior works in apartments, and in 18% of the contracts, the rights and obligations of the parties are not clearly defined.

In 39% of contracts, the deadlines for handing over the property are not specified, and 51% do not include penalties for delays in the commissioning of the building.

Additionally, 86% of contracts contain clauses about the possibility of termination, but in 59% of these, only the interests of the construction companies are considered, and in 14% of contracts, such terms are entirely absent.

In 74% of cases, the period for returning funds to the buyer in case of unilateral termination of the contract is from 30 to 180 days, and in some cases, up to 24–36 months. Meanwhile, most contracts limit the initial payment deadline to 30 days from the date of signing the agreement.

Furthermore, 84% of contracts do not include a warranty period for the built property, and 82% lack an obligation for the developer to fix defects discovered during the warranty period.

The Committee reminded that, according to Article 4 of the Consumer Protection Law, citizens have the right to receive full and accurate information about a product, service, or its manufacturer; the free choice of quality products and services; the safety of purchased objects; full compensation for material and moral damages caused by defects or the dangers of a product; as well as the right to seek protection of their rights in court or from authorized state bodies.

The committee recommends that when purchasing property, consumers carefully study the terms of the contract, paying attention to key clauses such as construction deadlines, commissioning dates, the balance of rights and obligations between parties, and responsibility for delays.

Moreover, it is crucial to check the experience and reliability of the developer through the electronic registry and the "Transparent Construction" system. All payments should be made exclusively through bank cashiers.

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