Akinin P.V.North-Caucasus Federal University (NCFU), Stavropol, Stavropol Krai, Russian Federation akinin_pv@mail.ru ORCID id: not available
Kravchenko I.I.North-Caucasus Federal University (NCFU), Stavropol, Stavropol Krai, Russian Federation gradkresta@yandex.ru ORCID id: not available
Subject Shared-equity investment in the primary housing sector is one of the most popular vehicles to finance housing construction projects. Objectives We identify and analyze positive and negative aspects for co-investors of housing development projects in using escrow accounts. The article analyzed issues and possible solutions resulting from the innovative interaction of parties to housing construction projects in Russia. Methods Studying the use of escrow accounts as a mean to make the finance of housing construction projects legally secure, we apply methods of logic, statistical and comparative analysis. Results The article indicates positive and negative aspects of using escrow accounts and enlists risks associated with the purchase of housing when its construction is in progress. We describe how individual co-investors can protect their invested funds. We suggest the escrow account mechanism should be more thoroughly elaborated to secure the finance of housing construction projects. Conclusions and Relevance The facility is novel for Russia. People are very wary of such innovations, especially in the housing segment. Would-be buyers should have clearer information about changes in the housing purchase procedure. Co-investors should be explained what requirements they need to meet when choosing a lending institutions and a developer, documentation on a shared-equity construction. It is crucial to communicate all details and technicalities about negative aspects of the financial facility.
Price S.S. Real Estate Finance. Laguna Hills, CA, Ashley Crown System-S, 2005, 594 p.
Blinkova E.V. [The escrow agreement (escrow) in the Russian civil law]. Vestnik Saratovskoi gosudarstvennoi yuridicheskoi akademii = Bulletin of the Saratov State Law Academy, 2015, no. 3, pp. 21–26. URL: Link (In Russ.)
Burkova A.Yu. [Escrow accounts: Prospects in the Russian legislation]. Zakony Rossii: opyt, analiz, praktika = Laws of Russia: Experience, Analysis, Practice, 2009, no. 1, pp. 53–56. (In Russ.)
Vasilevskaya L.Yu. [An escrow account agreement: Problems of legal qualification]. Rossiiskii yuridicheskii zhurnal, 2016, no. 2, pp. 37–49. (In Russ.) URL: Link
Erokhina M.G. [New in legislation: escrow accounts]. Vlast' zakona = Power of Law, 2014, no. 4, pp. 92–98. (In Russ.)
Rudenko E.Yu. [On the issue of restricting the right to dispose of funds on the escrow account]. Vlast' zakona= PowerofLaw, 2015, no. 2, pp. 125–130. (In Russ.)
Bagandova L.K. [The issues of escrow account application: Russian and foreign practice]. Vestnik moskovskogo gosudarstvennogo oblastnogo universiteta. Seriya: Yurisprudentsiya = Bulletin of the Moscow State Region University. Series: Jurisprudence, 2018, no. 1, pp. 142–159. URL: Link (In Russ.)
Asaul A.N. [The main obstacles of development of innovative activity in the invesment and construction sphere]. Fundamental'nye issledovaniya = Fundamental Research, 2015, no. 4, pp. 180–184. URL: Link (In Russ.)
Erickson A.V. Real Property Law and Escrows. Altadena, CA, The Altadena Press, 1930, 46 p.
Price S.S. Escrow. Principles and Practices. Laguna Hills, CA, Ashley Crown System-S, 2007, 494 p.
Petrikova E.M., Korzina E.A. [Opportunities of regional and local budgets on realization public-private partnership's projects]. Finansy i kredit= Finance and Credit, 2011, vol. 17, iss. 25, pp. 40–44. URL: Link (In Russ.)
Samosudova N.V. [Innovative solutions in modern construction]. Sovremennye innovatsii = Modern Innovations, 2015, no. 2, pp. 30–32. (In Russ.)
Khalin A.A. [The description of the business environment in construction]. Prioritetnye nauchnye napravleniya: ot teorii k praktike = Priority Research Areas: From Theory to Practice, 2015, no. 20-2, pp. 139–146. (In Russ.)
Akinin P.V., Akinina V.P., Kravchenko I.I. [Innovation in a commercial bank as crisis management means]. Bankovskieuslugi = Banking Services, 2009, no. 2, pp. 25–33. (In Russ.)