Tajikistan: 5 key questions for a developer when buying an apartment

The lawyers of the PO «Independent Human Rights Protection Center», in their collection «Housing Tips», share recommendations on choosing and buying apartments in new developments.

The latest series of tips is devoted to the meeting with the developer - what you need to talk to them about, what questions to ask, and in general whether it is worth buying this apartment or still continuing the search.

This material gives only five main topics; in practice there are more of them…

No. 1. Pre-visit thoughts, or a reason to ponder… or a reason to ponder…

In our first collection, the lawyers of the PO «Independent Human Rights Protection Center» spoke about what information you need to gather about the building in which you plan to buy an apartment.

Let us dwell in more detail on this, perhaps the most important, point. Every company, including a construction one, has its own strategy and marketing moves for selling its product as quickly as possible, and in order not to fall for the sales manager’s marketing tricks, you need to approach this objectively.

So, you have called the company and received an invitation to discuss buying an apartment. So as not to miss any details, prepare your questions in advance,   the ones to which you would like to receive answers.

To do this, start with gathering information about the building in which you are considering the option of buying an apartment. Perhaps, by visiting the company’s website, you will already find answers to many of your questions.

Inquire about what vacant apartments there are in the new development under construction, pay attention to the floors and the types of layouts. In most cases the company’s representatives, at the meeting, offer an economy-version apartment on a higher floor; this information may not be on the website.

Do not forget about the developer’s reputation. Inquire whether the company has built other high-rises, whether they were delivered on time or not.       

 If any incident occurred, then in most cases this information leaked to the media or social networks. You have gathered the information, and just in case, inquire about the answers to it from the construction company’s representative as well. If there are discrepancies, then that is already a reason to ponder.

Let us recall the list of documents that should be requested from the developer:

1. For a start, request the documents confirming the construction company’s right to conduct construction work: the charter, the certificate of entrepreneurial activity, the extract from the Single Window register, the license for construction activity, the decision of the local authorities on the allocation of the land plot for construction.

2. Request the draft of the standard shared-participation construction agreement or another agreement under which the acquisition of the apartment will be legalized.

3. Inquire about the construction company’s agreements with utility services and contractors, on the basis of which the building will subsequently be connected to water, electricity and heat supply.

No. 2. At whose expense?

A not-unimportant question is the financing of the construction, in simpler terms, with what money the residential building will be built. Maybe it will be a project with shared-participation financing by shareholders, or the company will build the building at the expense of its own funds, or maybe the construction will be conducted at the expense of third-party investment?

Yes, by the way, if the construction is conducted on the basis of investors’ contributions, inquire about who that very investor is, what they do, and whether they have worked with the construction company before.

You need this information only in order to safeguard yourself against receiving unexpected news of bankruptcy or a «freezing of construction» due to a lack of financing.

You also need to inquire about the developer’s loans from banks for construction. The developer’s obligations to the bank — are also a certain risk, but not a reason for doubt.

No. 3. Money up front!?

Developers on the market offer several options for paying the amount of the apartment’s acquisition.

It happens that you do not have the full amount to buy an apartment; you will be offered options — installments or lending. In this case you need to get an answer to the question: «Will the price per square meter change depending on the form of payment?». Usually the price may increase when buying an apartment in installments, but since the fourth quarter of 2020, amid declining demand, some companies have begun to offer interest-free payments.

To conclude the financial question, clarify whether additional financial expenses will arise on top of the agreed amount of the apartment’s cost.

For example, there have been cases of disputed situations related to the developer’s demands for additional contributions from apartment owners for routing heat-supply communications or changing the building’s facade. It is precisely this information that will allow you to avoid trouble later on.

No. 4. Learn the material!

As we recounted earlier, construction is conducted according to three main types of construction: panel, frame and brick.

On your choice of developer will depend not only the type and quality of construction, but also the deadlines for delivering the property turnkey. On average, panel buildings are built within a year and a half, frame ones — a little more than two years, while a «long-build» — is brick buildings; their construction takes more than three years, and practically this type is almost not used in housing construction in Tajikistan.

Inquire about all these structural details from the construction company’s representative. Inquire about the types of building materials, as well as the presence of interior partitions.

The choice of the apartment’s layout type depends only on you and your financial possibilities. Yes, and do not forget to inquire from the company’s representative about the options of the apartments offered, whether with rough finishing or even with full finishing and even with furniture; such options also exist on the real estate market of Tajikistan.

No. 5. Two steps from all the amenities?

We spoke about marketing moves earlier; one of them is deceptive advertising. In fact, you will not always be able to get the desired result.

When communicating with the developer’s representative, be sure to inquire about the construction or location near the building of kindergartens, schools, shops and service-sector outlets. Believe us, it is no less important that, when populating a five-block high-rise, at minimum one kindergarten and one school are necessary.

If there are no new ones, then it is really worth considering your readiness to take the children to their former school or kindergarten in another district of the city.

Inquire about the presence of a children’s playground and a car park, green spaces and parks.

It is not certain that you will get exhaustive answers to all your questions, but they need to be asked. If something is not clear to you, do not hesitate to return to the developer’s office again, clarify the inaccuracies in the details and, most importantly, do not miss anything.

Source: Vecherka