New Projects for Developers: Apartment Purchases, Money Returns, and Insurance

The Commission for the Protection of Economic Competition and Consumer Interests convened a meeting with the participation of developers and state bodies to discuss the existing issues in the sector and new legislative initiatives. The meeting, chaired by Gegham Gevorgyan, was attended by representatives from the Yerevan Municipality, the Committee for Urban Development, the Ministry of Justice, the Armenian Association of Developers, and the commission itself.

Gegham Gevorgyan noted that a study conducted last year revealed several issues related to the non-fulfillment of advertised infrastructure projects, delays in apartment handovers, and building maintenance. Recommendations have been proposed to the competent authorities for addressing these issues, based on which two draft laws have already been developed and are under discussion. These drafts aim to ensure the scrupulous operation of companies and consumer protection.

The proposed changes include the establishment of self-regulating organizations (SROs) for specialized developers, which will conduct company ratings. Transparency requirements will be defined, including the presence of an official website and mandatory audits. To mitigate the risks of bankruptcy, a system for insuring the return of funds paid by buyers will be introduced through bank guarantees, insurance, or freezing funds in a special account.

Representatives of participating companies evaluated the initiatives positively and presented their observations and recommendations.