The government control in the sphere of share construction has been enhanced

Significant amendments to the legislation on share construction have entered into force since July 01, 2018 (except for specific provisions which shall enter into force later).

For example the banking control over the accounts of the developers who are now performing housing construction shall be enhanced. But more significant changes will wait for the developers who are just on the step of receiving the construction permit. Such developers shall choose the most suitable for them way of work – by using escrow accounts or by using the so called “project financing”. Such choice is permitted only for the nearest year; any project in respect of which the first share contract will be submitted for the registration to Rosreestr in a year, shall be built solely by using the scheme of escrow accounts.

The Federal Law of July 01, 2018 No. 175-FZ “On introducing amendments to the Federal Law“On participation in the share apartment block construction and other real estate objects and on introducing amendments to certain legislative acts of the Russian Federation” and specific legislative acts of the Russian Federation”.