How to vet a developer before buying

Why it matters

The main risk of a new build is delay or failure to deliver. Vetting the developer before you pay greatly reduces the chance of losing money.

What to check

Before paying, review:

• the construction permit and project documents;
• the way the off-plan construction is guaranteed — one of three: a guarantee from the Unified Operator (Kazakhstan Housing Company), participation of a second-tier bank, or raising buyers' funds only after the building frame is erected;
• the track record of completed projects and adherence to deadlines;
• reputation, buyer reviews and any lawsuits;
• who the seller in the contract is and where the money goes.

Contract and payment

Off-plan purchases are made under a contract (e.g. an equity-participation agreement). It must state clear delivery dates, the flat's specs, the price and the developer's liability. Pay only through the official, legally prescribed mechanism — never cash off the books.

Ready home or off-plan

At an early stage (foundation) the price is lower but the risk and wait are higher. A ready flat costs more, but you see the result and can move in. The choice depends on your budget and willingness to wait.