Uzbekistan Proposes Ending Transfer of Utility Debts to New Homeowners

Tashkent, Uzbekistan (UzDaily.com) — The Committee for the Development of Competition and Protection of Consumer Rights in Uzbekistan has proposed abolishing the practice of transferring utility debts from former homeowners to new property owners.

The agency noted that after purchasing housing, citizens often face demands to repay utility debts accumulated by previous owners. Such cases contradict Article 21 of the Law “On Protection of Consumer Rights,” which prohibits contract terms that restrict citizens’ rights.

According to the committee, these situations arise due to errors in billing systems, delays in updating interagency electronic databases, and the inclusion of unlawful clauses in property sale contracts.

Under the current procedure, before a notarial certification of a real estate transaction, the NOTARIUS information system is used to verify the existence of utility debts. A transaction can only be completed if no outstanding debts are recorded. Responsibility for the accuracy and timely updating of data lies with utility service providers.

As an example, the committee cited a case in the Samarkand region where a citizen purchased a property, and no debt was recorded in the NOTARIUS system at the time of the transaction.

However, a water supply company later claimed a debt of 13 million soums, which had been accumulated by the previous owner. A subsequent review showed that the debt had been incorrectly generated due to an error by a former employee of the utility company.

As a result, the citizen’s rights were restored and the amount was adjusted in their favor.

The committee also emphasized that some contracts still include provisions requiring buyers to pay debts identified after the transaction. Such conditions have been deemed invalid and unenforceable.

To prevent similar cases, the agency has submitted proposals to the Ministry of Justice to remove these clauses from all notarial real estate sale agreements.