What is Shared-Equity Construction?
In accordance with the Law of Turkmenistan On Shared-Equity Construction of Residential Buildings and Other Real Estate Objects, Shared-equity construction refers to a type of construction in which developers raise funds from equity holders for the construction of residential buildings and (or) other real estate objects.
Who are developers and equity holders?
Developer - a legal entity created in accordance with the legislation of Turkmenistan, attracting funds from equity holders for the construction on its own and (or) with the involvement of third parties of a residential building and (or) other real estate object on a land plot provided to it in the manner prescribed by the legislation of Turkmenistan.
Shareholder - a citizen of Turkmenistan who has reached the age of eighteen, permanently residing in Turkmenistan, an individual engaged in entrepreneurial activity without forming a legal entity, a legal entity created in accordance with the legislation of Turkmenistan, who have entered into an agreement with the developer for participation in the shared construction of a residential building or other real estate object (hereinafter - the contract for participation in shared construction).
Concept of residential building, other real estate objects and permission for commissioning
Residential buildings - single-family residential buildings that are part of a residential complex and residential buildings consisting of two or more apartments, and social, cultural, administrative, household and commercial facilities located in these residential buildings, being built by attracting funds from equity holders.
Other real estate objects - stand-alone objects of socio-cultural, administrative, household, commercial and industrial purposes, built by attracting funds from equity holders.
Permission for commissioning is an act of the state acceptance committee on the acceptance of a residential building and (or) other real estate object.
Source: Rysgal newspaper, 31.08.2020
