KORGAN Law Firm has successfully completed another case on debt collection under a reservation agreement for a client of a construction company. We represented the interests of the client who, like many other equity holders in Kazakhstan, faced risks associated with investing in real estate under construction.
Case Background
Previously, a preliminary reservation agreement was concluded between the construction company and our client, according to which the client wanted to purchase residential space in a residential complex under construction located in Astana. Due to the violation of the terms of the agreement by the construction company, an agreement was concluded to terminate the Reservation Agreement. According to the terms of this agreement, the construction company was obliged to return the funds contributed by the client in the amount of 13,000,000 tenge within 60 working days from the date of signing the agreement. However, after the termination of the agreement, the obligations to return the money were not fulfilled, which prompted the client to seek help from our company.
Difficulties of investing in primary real estate
KORGAN’s experience shows that the risks of investing in real estate under construction in Kazakhstan remain high. Despite the adoption of the law on shared participation in housing construction, loopholes for unscrupulous developers still exist, and some construction companies practice schemes with reservation agreements to bypass the mechanism of shared participation.
These schemes often lead to situations where buyers find themselves in a vulnerable position, facing the risk of not receiving their funds when terminating the contract. Moreover, as our experience shows, many developers reserve the right to make changes to the project without providing shareholders with proper guarantees for the quality and appearance of the properties.
Results of KORGAN’s work
The KORGAN team carefully prepared materials for the trial and initiated debt collection. Faced with our legal support for the client, the developer proposed to enter into a mediation agreement to avoid further litigation. Under the mediation agreement, the construction company voluntarily paid the client the entire debt in the amount of 13,000,000 tenge.
Not the first successful case of refund under a reservation agreement
This is far from the first successful case of debt collection under a reservation agreement that our company has handled. We have accumulated significant experience in protecting the rights of equity holders and investors in the primary real estate market. Thanks to our efforts, clients receive legal protection that helps them return funds even in the face of shortcomings in legislation and insufficient protection for equity holders.
KORGAN continues to defend the interests of equity holders and encourages buyers of primary real estate to carefully approach the choice of developers and the legal execution of contracts. If you are faced with a violation of obligations by a developer, our specialists are ready to provide you with reliable legal protection.
By contacting KORGAN, you receive professional support at every stage of the legal process, from document preparation to effective dispute resolution. We guarantee quality services, an individual approach and transparent cooperation so that you feel confident and calm about the result.
With our help, you will be confident in the reliability of the protection of your rights and interests.
Contact us right now for a free consultation and trust your case to experienced professionals from KORGAN!
Author of the article: Berdysheva A.K.