What is shared construction participation contract?
In accordance with the Law of Turkmenistan on Shared-Equity Construction of Residential Buildings and Other Real Estate Objects, a shared conservation participation contract concluded in writing is the basis for the implementation of shared construction.
Under a shared construction participation contract, the subject of which is an apartment, only a person who is a citizen of Turkmenistan can act as a shareholder. Under a shared construction participation contract, the subject of which is a separate part of stand-alone socio-cultural, administrative, community, commercial and industrial facilities, as well as socio-cultural, administrative, community, commercial and industrial facility or its separate part located in multi-apartment residential building, only physical persons engaged in entrepreneurial activities without forming a legal entity, and legal entities created in accordance with the legislation of Turkmenistan can act shareholders.
Written applications from citizens and legal entities submitted to the developer are the basis for concluding a shared construction participation contract.
The developer must keep a record of written applications to contract for shared construction from citizens and legal entities.
The developer concludes shared construction participation contracts taking into account the chronological order of submission of written applications.
What documents may a shareholder require from a developer before concluding a shared construction participation contract?
Before concluding a shared construction participation contract, the shareholder has the right to demand from the developer for review:
- constituent documents of the developer;
- state registration certificate of the developer;
- tax registration certificate;
- project documentation, including all changes made to it.
If the subject of shared construction is an apartment, then the shareholder, before concluding a shared construction participation contract, also has the right to demand from the developer for review an audit report for the last year of the developer's financial and economic activities and a document confirming the fact of insurance by the developer of the facility under construction for the period of its construction and warranty operation.
Source: Rysgal newspaper, 21.09.2020