The Central Bank of Russia has published an overview of a federal-law-based procedure for using escrow accounts in single-family housing construction that takes effect on 1 March 2025, extending to individuals commissioning detached homes protections similar to those available to buyers of apartments in multifamily buildings under construction. Under the regime, contractors will receive escrowed funds only after title to the completed property is registered, with individuals entitled to a refund if the contractor fails to perform. Escrow accounts may be opened only with banks that have an adequate credit rating, and funds will be insured up to RUB 10 million. Customers may discontinue construction and withdraw funds from escrow after compensating the contractor for incurred materials and work costs, while contractors using the new procedure must publish detailed information in the Unified Housing Construction Information System, including legal entity information, house projects, expected construction costs and timelines, and the authorised escrow bank. Loans under the Family Mortgage programme may be issued only where amounts used to pay under construction contracts are deposited in escrow accounts, a condition the Bank of Russia expects will support uptake by both households and developers.
Central Bank of Russia 2025-02-28
Central Bank of Russia details new escrow account regime for single-family home construction effective 1 March 2025
The Central Bank of Russia has outlined a new federal-law-based procedure for using escrow accounts in single-family housing construction, effective 1 March 2025. This regime ensures contractors receive funds only after property title registration, with protections similar to those for multifamily building buyers. Escrow accounts must be with banks holding adequate credit ratings, and funds are insured up to RUB 10 million, supporting the Family Mortgage programme.