The State Duma has advanced a bill across its second and third readings that would cut penalties for developers who breach agreements with shareholders from 50 percent to 5 percent of the awarded amount. The text of the measure was published in the Duma’s official database, making its provisions accessible to the public and stakeholders alike.
Under the proposed changes, when a developer fails to meet contractual obligations, shareholders would be able to invoke consumer rights protections. In such cases, the penalty payable by the developer would drop to 5 percent of the compensation already allocated for housing defects, rather than the current 50 percent. The bill aims to recalibrate this liability downward, aligning it more closely with consumer protection norms while still ensuring accountability for missed deadlines and defective work.
The draft also contemplates adjustments to the total penalties that can be directed to shareholders. It specifies compensation if the developer is delayed in addressing defects in an apartment or if the buyer is not reimbursed for costs tied to necessary repairs. This creates a clearer, more predictable framework for dispute resolution and compensation in the aftermath of non-compliance.
When housing is purchased for personal use, the penalty calculation would hinge on a rate tied to the Central Bank of the Russian Federation. Specifically, the daily penalty would be 1/150 of the daily refinancing rate multiplied by the amount spent to fix problems. If defects render the dwelling uninhabitable, the final penalty would depend on the contract price, reflecting the fear that some delays can be economically devastating for buyers. For housing bought for commercial purposes, the calculation would shift to 1/300 of the central bank rate, with the current figure equalling a 1 percent charge for each day of delay. These formulas intend to balance the need for prompt remediation with the realities of construction timelines and market conditions.
The document indicates an effective date of September 1, 2024, signifying when these rules would start applying to new and ongoing cases. This transition period is meant to give stakeholders time to adjust their expectations and ensure a smooth implementation path for the updated liability framework.
Public guidance on how to handle deficiencies in new housing has long emphasized a straightforward procedure. Buyers are advised to begin with a formal written request to the developer, detailing the outstanding issues and proposing a timetable for remediation. This initial step remains a cornerstone of consumer action, serving as a clear marker for the start of an official corrective process. The evolving legal landscape, including the potential changes described, underscores the importance of documenting communications and keeping precise records of all repairs, costs, and timelines. It helps both parties stay aligned and reduces the risk of disputes escalating unnecessarily.
In recent discourse, there has been a focus on how pricing and regulatory priorities interact with consumer protections in new housing markets. The balance between encouraging development and safeguarding buyers continues to be a central policy concern. The proposed bill represents an attempt to streamline remedies for defects while maintaining appropriate accountability mechanisms for developers. It reflects ongoing efforts to refine the regulatory environment so that it better serves both industry participants and residential buyers.