Translation. Region: Russian Federal
Source: Government of the Russian Federation – Government of the Russian Federation –
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Since March 1, 2025, a law has been in force in Russia regulating the use of escrow accounts in the sphere of individual housing construction (IHC). This mechanism ensures the protection of citizens' funds from unscrupulous contractors and increases the reliability of transactions in the construction of private houses. Thus, to date, the number of private houses in the construction of which this mechanism was used has exceeded 16 thousand. This was reported by Deputy Prime Minister Marat Khusnullin.
"We see a significant increase in citizens' interest in individual housing construction. Our task is to create conditions for people to realize their desire to live in their own home. An important component in this matter is to guarantee the security of transactions. On March 1, 2025, a law came into force providing for the use of an escrow account mechanism for individual housing construction, which has already proven itself in the construction of apartment buildings. If in the spring, about 5 thousand individual residential buildings were built using escrow, today more than 16 thousand private houses in the country are being built using this secure financial mechanism," said Marat Khusnullin.
The Deputy Prime Minister recalled that escrow accounts guarantee the protection of equity holders' funds at all stages of construction. Buyers are assured that their money will be transferred to the contractor only after construction is completed. This means that in the event of a missed deadline or other violations, citizens will be able to return their investments.
The number of construction companies ready to work with escrow in the construction of private homes is also growing. According to the state company DOM.RF, the number of such contractors has grown more than 2.5 times – from 1.8 thousand on March 1 to 4.7 thousand companies at the current moment.
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