Assignment of Rights in a New Build in Bishkek: What It Is and How to Complete It
Assignment is one of the most common ways to buy an apartment in a building under construction in Bishkek. But many buyers have a poor understanding of how it works and risk running into serious problems. Here is a full explanation.
What Is an Assignment of Rights?
When a person buys an apartment in a new build at the construction stage, they receive not the apartment itself but a right of claim — the developer's obligation to hand over the apartment once the building is complete. This right can be sold to another person. Such a transaction is called an assignment (or cession).
In simple terms: you are paying not for an apartment, but for a place in the queue to the developer.
Why People Sell via Assignment
The seller (the original buyer) sells because:
- Circumstances have changed and money is needed
- They bought at an early stage and the apartment has risen in value — they want to lock in the profit
- They changed their mind about waiting for the building to be completed
The buyer chooses assignment because:
- They want an apartment in a specific block, floor, and layout that is no longer available directly from the developer
- The price may be more attractive than buying from the developer
Risks of Assignment
The Main Risk: the Developer
You take on all the risks that the original buyer already accepted. If the developer delays the handover or goes bankrupt, you will be affected in exactly the same way as if you had bought directly.
Always check the developer:
- Current building permit
- Reputation and history of completed projects
- Status of the land plot
Risk of Double Sale
If the original buyer signed a "grey" agreement (not registered with the GRS), they may sell the rights to several people simultaneously.
Protection: only accept officially registered equity participation agreements.
Debts of the Original Buyer to the Developer
The seller may not have fully paid the developer, and you may only discover this after the transaction.
Protection: before signing, obtain a certificate from the developer confirming there is no debt under the agreement.
How to Complete an Assignment Correctly
Step 1: Check the Original Agreement
Ask the seller to provide the original agreement with the developer. Verify that:
- The agreement is registered with the GRS
- Payment under the agreement is confirmed by receipts
- There is no outstanding debt to the developer
Step 2: Notify the Developer
Under Kyrgyz law, an assignment requires the developer's consent unless the agreement provides otherwise. Contact the developer and obtain written consent. Some developers charge a fee — confirm in advance.
Step 3: Draw Up the Assignment Agreement
The assignment (cession) agreement is made in writing. Notarisation is recommended. The agreement specifies:
- The subject matter (specific apartment, number, floor, area)
- The assignment price
- The rights and obligations of the parties
Step 4: Register with the GRS
The cession agreement must be registered with the State Register. Only after registration do you officially become the holder of the right of claim against the developer.
Step 5: Notify the Developer of the Change of Party
After registration, notify the developer in writing of the change of party to the agreement.
Taxes on Assignment
Seller: if the assignment price exceeds the amount paid to the developer, the difference is income on which the individual pays 10% income tax.
Buyer: no taxes arise on the purchase. Tax obligations will arise on any subsequent sale of the apartment after the building is handed over.
Assignment vs Buying Directly from the Developer
| Assignment | Direct purchase | |
|---|---|---|
| Price | May be more or less favourable | Fixed price list |
| Choice of layouts | Limited to what is available | Wider at early stages |
| Risks | Double (seller + developer) | Developer only |
| Documents | More complex | Simpler |
Assignment of rights in a new build is a workable instrument, but requires careful checking at every step. Aziza Talantbekovna regularly accompanies such transactions in Bishkek: she checks the developer, the original agreement, and the correct execution of the cession.
Consultation with Aziza Talantbekovna – realtor, 30 years experience, Bishkek. From 2,000 som. Tel: +996 702 584 477
PAID consultation. From 2,000 som. Even for a single question. Tel: +996 702 584 477