Azerbaijan proposes new rules to regulate housing construction cooperatives

A member of Azerbaijan’s parliament, Razi Nurullayev, has proposed new measures to regulate housing construction cooperatives, aiming to better protect homebuyers from financial risks.

The proposals include requiring cooperatives to secure a bank guarantee or insurance coverage before construction begins, with the funds to be used to complete projects if construction is frozen.

Nurullayev also suggested that buyers’ funds be placed in supervised escrow or deposit accounts, to be released in stages based on actual progress in construction.

He said personal liability for cooperative management should be strengthened, noting that in cases of fraud or misuse of funds, responsibility should extend beyond the company to its executives, including potential long-term bans from construction activities.

N.Tebrizli