Citizens were reminded of their rights when terminating contracts with construction companies

In the period from January to August 2025, the Competition Committee received about 1000 appeals regarding the construction and purchase of apartment buildings, the press service of the committee reports.

The appeals mainly described violations of contract terms with construction organizations — untimely delivery of new residential premises, non-compliance with the requirements specified in the contract, inconsistency of projects stated in advertisements and announcements.

It was also revealed that some companies include provisions in contracts that contradict the legislation. In particular, in the terms of the contract, it is often encountered that “if the consumer terminates the contract on their own initiative, the construction organization has the right to withhold a fine of 10% of the amount or value of the contract paid by the consumer”.

In practice, such requirements contradict the norms of the law:

• Article 385 of the Civil Code states that upon termination of the contract, compensation is possible only if there is a real damage to the other party;
• article 14 defines the concept of “damage” as actual harm and lost benefit, while in practice, the consumer does not cause harm to the construction organization upon termination of the contract. This is because apartment buildings are built according to standard designs, and construction organizations can easily sell such objects to another buyer. In addition, high demand for housing and price increases from year to year provide construction companies with profit;
• Article 260 of the Code also states that a penalty (fine, penalty) may be applied only in the event of non-performance or improper performance of obligations by the debtor. In most cases, the consumer fulfills their payment obligations on time, and the construction organization remains a debtor until the transfer of the housing;
• According to Article 21 of the Law “On Protection of Consumer Rights”, conditions that restrict consumer rights and contradict the law are considered invalid, and Article 23 guarantees the priority of consumer rights. Therefore, the recovery of a fine from the consumer upon termination of the contract on their own initiative is considered illegal;
• Article 9 of the Law “On Guarantees of Freedom of Entrepreneurial Activity” stipulates that business entities are obliged to comply with the legislation on competition and consumer rights.

When buying an apartment in a new building, it is very important to carefully familiarize yourself with all the terms of the contract before signing it. If your legal knowledge is insufficient, it is advisable to consult a qualified lawyer or attorney to fully understand the content of the contract.

Also, if provisions contradicting the legislation or restricting consumer rights are found in the concluded contract, you can apply to the court or authorized state bodies in the prescribed manner. This will allow you to protect your legal rights and interests.

Based on the results of the Competition Committee’s work, 8 consumers terminated contracts with construction organizations, — the report says.

As a reminder, a case has been initiated against a construction company in Tashkent for delaying the delivery of housing. The buyer, who was promised a ready-made apartment by 2024, never received it.