Utility payments in a new-build property: who pays before moving in

The buyer is receiving the keys or is only about to sign the acceptance certificate, yet the management company is already issuing an invoice for maintenance, heating and water. The situation is typical: the building has been commissioned, the flat is in fact unoccupied, nobody lives there. The question arises whether you are the one obliged to pay such charges and from what date.

The article examines when utility payments in a new-build property arise before moving in and when after, who is responsible for them under the Civil Code of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan on shared participation in construction, which items may be included in the invoice, how to verify meter readings and tariffs, what procedure to follow in case of an erroneous charge and what the liability for non-payment is.

When utility payments arise in a new-build property: before and after moving in

The law ties the obligation to bear utility costs in a new-build property to the moment the flat is actually handed over. Until the property is transferred under the acceptance certificate, the burden of maintaining the property lies with the developer. This rule follows from the shared participation agreement in housing construction, governed by the Law of the Republic of Kazakhstan "On shared participation in housing construction".

The moment from which you must pay for utility services in a new-build property depends on the signing of the certificate. Before that, the future owner is not a consumer of utility resources, since they do not own or use the premises. Therefore, utility payments before the keys are handed over and the certificate is signed remain with the developer.

• Before the acceptance certificate is signed, the developer bears the utility costs.
• From the date of signing the act, the obligation to pay passes to the shareholder.
• The moment the obligation arises does not depend on registration of ownership.
• Actual consumption of resources after handover is recorded by metering devices or by calculation.
• If the act is not signed through no fault of the shareholder, no utility fees are charged to them.
• A dispute over the start date of charges is resolved on the basis of the date of the acceptance and handover act.

Who is responsible for utility payments in a new building before occupancy

After the building is commissioned and the acceptance act is signed, the obligations for maintaining the apartment pass to the owner: under the Civil Code of the Republic of Kazakhstan, the burden of maintaining property lies with the owner. Until then, the apartment remains in the developer's possession. Therefore, utility services before handover of the apartment are paid by the developer, unless the contract provides otherwise.

Until the premises are handed over under an act, charges under individual meters and according to consumption norms are borne by the developer. The owner joins the payments from the date of signing the handover act or from the date specified in the contract. During this period, the management company only issues invoices and keeps records, without replacing a party to the contract.

• developer — until the acceptance act is signed: utility services and maintenance of the property
• owner — from the date of the act: maintenance of the apartment, common property, major repairs
• management company — upkeep of the building, calculation and collection of payments
• service providers — contracts with the developer before handover, with the owner after
• in the absence of an act — obligations remain with the developer
• in case of evasion of acceptance — risk of costs being attributed to the owner

The parties determine the specific period and amount of payments in the contract and the acceptance certificate.

Utility payments in a new building under shared construction: what the contract says

The obligation to pay utilities for an apartment in a new building is tied not to the date of the shared construction agreement, but to the actual handover of the property to the shared construction participant. Until then, the costs are borne by the developer as the owner of the unhanded-over property. The moment of handover is fixed by the acceptance certificate: it records the transfer of the burden of maintenance.

The Law on Shared Construction does not directly regulate utilities, but it sets the framework: the developer hands over the property in the condition stipulated by the project and the contract, and until handover the risks and costs rest with the developer. A condition imposing costs on the shared construction participant for the period when the apartment has not yet been received is disputable and is subject to review for compliance with the law. A clause on "advance payment from the date the building is put into operation" is assessed through the actual handover.

• The date and procedure for handing over the property under the acceptance certificate.
• The condition on the moment from which utility payments are charged.
• The procedure to follow if the shared construction participant unreasonably evades acceptance.
• The details of the management company or the Property Owners' Association that will issue the invoices.
• The existence of a separate agreement on payment for services before the keys are handed over.
• Compliance of the contract with the Law of the Republic of Kazakhstan "On Shared Construction of Housing".

Which utility payments in a new building are charged before occupancy: the full list

After the building is put into operation and before occupancy, the owner receives an invoice from the servicing organisation. The basis is not residence, but the handover of the apartment under the acceptance certificate: from that moment the burden of maintenance passes to the shared construction participant, and under the Civil Code of the Republic of Kazakhstan it is borne by the owner.

Some services are of a common-property nature and do not depend on residence. Heating is charged if the system is connected and the service is provided, even without individual consumption. Maintenance of common property includes cleaning of common areas, servicing of utility networks, operation of lifts and waste removal. Contributions to accumulate funds for major repairs are charged in the amount approved by the meeting of owners.

• Heating is a common-property service, charged when the system is connected.
• Cold and hot water — by individual meter.
• Electricity — by individual meter or, where there is none, by the standard rate.
• Maintenance of common property — cleaning, upkeep of networks, lifts, waste removal.
• Contributions to the capital repair fund — in the amount approved by the meeting.
• Targeted contributions — only by decision of the owners' meeting.

Charges before moving in are connected with ownership and the actual provision of services.

Meter readings and charges in a new building before moving in

After the building is commissioned and the acceptance certificate is signed, water, heating and electricity meters are usually already installed by the developer, but they must be put into operation for billing purposes. Commissioning is arranged by the utility provider or the management company with the owner's participation: the integrity of factory seals, the meter's compliance with the design and the absence of external connections are checked. A commissioning certificate is drawn up stating the serial number, date and initial readings. Until it is signed, readings are not accepted for billing.

Sealing is carried out by an inspector of the utility provider after the meter is installed. The owner submits an application with the meter's passport and a document confirming title to the apartment. The inspector fixes control seals on the body and connection points, and enters the data in the certificate and the subscriber's account. Unauthorised removal or damage to a seal gives the supplier grounds for recalculation.

• Submit an application to put the meter into operation after accepting the apartment
• Attach the meter's passport and the title document
• Provide the inspector with access to the meter and connection points
• Sign the commissioning and sealing certificate with the initial readings
• Submit readings monthly within the period specified in the contract
• Keep the certificates and receipts to verify charges

The practice is simple: the obligation to pay is tied to the date the apartment is transferred under the certificate, not to the fact of residence, so every invoice before moving in must be checked against the date of the certificate.

Contract with the management company in a new building: what is important to check

In a new building, until the owners have chosen a form of management — an OSI or a simple partnership — the building is usually temporarily managed by a management company, and the owner is asked to sign a contract with it. The obligation to pay for the maintenance of common property arises from the transfer of the apartment under the certificate, not from the date of actual residence. It is worth checking the contract before signing: its provisions determine what payments are charged for and how.

The terms of the contract shape payments through the list of services, the calculation procedure and the frequency of charges. It must clearly state what work is performed for the maintenance of common property, how the amount of the payment is determined and what costs relate to common property (stairwell lighting, lifts). If the wording is vague, it is difficult for the resident to verify the validity of the charges and challenge unnecessary lines in the invoice.

• The list of works and services for the maintenance of common property with specific indicators.
• The procedure for determining the amount of the payment and the frequency of its change.
• The composition of costs for common property and the method of their calculation.
• The term of the contract and the conditions for its amendment or termination.
• The procedure for the management company's reporting to the owners.
• The grounds for recalculation where services are of poor quality or not performed.

Tariffs and charges in a new building: how to check they are correct

Shared construction is regulated by the Law of the Republic of Kazakhstan on Shared Participation in Housing Construction, but it does not set utility tariffs. Charges are formed from tariffs approved by the authorised body for the regulation of natural monopolies and from consumption volumes according to common and individual meters. The check begins by comparing the rate applied with the published approved tariff for the specific locality and supplier.

Request a breakdown from the supplier or the condominium management body: period, norm or meter reading, tariff, coefficient. Compare it with the meter readings and the invoice for the previous period. Discrepancies in volume are due to incorrectly submitted readings; in amount, to an outdated tariff or an extra line.

• Compare the tariff in the invoice with the officially approved tariff for your supplier and locality.
• Check the volume: individual meter readings, common meter readings and the norm where there is no meter.
• Request a written breakdown of the charge with the calculation formula and the period of application of the tariff.
• Submit a written request to the supplier and the condominium management body to explain the lines in the invoice.
• If an error is confirmed, send a claim demanding a recalculation and keep a copy with a receipt stamp.
• If the recalculation is not made, contact the natural monopolies regulator or file a court claim challenging the charge.

If utility bills in a new building were charged before you moved in: the procedure to follow

Having received an invoice for an apartment you have not yet moved into, record the fact of the charge: keep the paper bill, photos of the individual meter readings on the date of inspection, the acceptance certificate or another document confirming that actual use of the premises has not begun. Under the Civil Code of the Republic of Kazakhstan, the burden of maintaining property lies with the owner, but the person who actually uses the resources is obliged to pay for them. If no services were provided, the charge for the period before you moved in is subject to recalculation or cancellation.

What to do if utility bills arrive before you move in: do not pay the bill blindly and do not ignore it, since the debt may be referred for enforcement. Send a written request to the service organisation, the management company or the OSI demanding an explanation of the basis for the charge and a recalculation. The procedure for erroneous charges in a new building also includes reconciling the personal account and the data on registered persons.

• Keep the invoice, meter photos and the document on acceptance of the premises.
• Submit a written request to the service organisation demanding a recalculation.
• Draft a claim stating the period and amount of the disputed charge and attach the evidence.
• Register the request with a receipt stamp or send it in a way that confirms delivery.
• If they refuse or do not respond, send a complaint to the authorised consumer protection body.
• Apply to court to protect the violated right if the pre-trial procedure has not produced a result.

Disputes over utility bills in a new building before moving in: court practice

Disputes over utility bills in a new building before moving in concern the period between the commissioning of the building and the transfer of the apartment to the shared construction participant. The relations between the parties are governed by the Law of the Republic of Kazakhstan on Shared Participation in Housing Construction, the contract and the acceptance certificate. If the management company or the developer issues invoices for services the participant has not used, a dispute with the developer over utility bills arises.

In such disputes, the usual starting point is that the obligation to pay for the maintenance of common property and utility services arises for the participant from the moment the object is transferred. Before the acceptance certificate is signed, the burden of maintenance lies with the developer as the person in possession of the object. Claims for payment for the months preceding the transfer may be recognised as unfounded.

• the date of signing the acceptance certificate and the moment of actual access to the object
• who issued the invoices: the developer, the management company or another person
• for what period the payments were charged and whether it coincides with the period of the developer's possession
• whether the participant actually consumed the services
• on what basis the amounts already paid were withheld
• whether the charges comply with the contract and the Law of the Republic of Kazakhstan on Shared Participation in Housing Construction

Liability for non-payment of utility bills in a new building before moving in

Under the Civil Code of the Republic of Kazakhstan, the burden of maintaining property lies with the owner, while for the shared construction participant the obligation to pay for utility services arises from the transfer of the apartment by acceptance certificate, even if the move-in has not taken place. Until the premises are transferred and the acceptance certificate is signed, the developer bears the costs.

Non-payment may entail a penalty (late payment fee) if it is provided for by the contract with the supplier or by law, or liability under the general provisions of the Civil Code of the Republic of Kazakhstan on delay in a monetary obligation. The longer the debt accumulates, the more significant the amount over and above the principal payment.

• a penalty under the contract or law, or liability under the general provisions of the Civil Code of the Republic of Kazakhstan
• restriction or suspension of the supply of the utility resource upon warning
• court recovery of the principal debt and accrued penalty
• enforcement proceedings and recovery against the debtor's property
• the obligation to pay remains even where the property has not been occupied

How to avoid mistakes with utility payments in a new building when moving in

Start by recording the meter readings when accepting the apartment: state the readings of all metering devices, their serial numbers and the date they were taken in the acceptance certificate. This confirms that you did not consume any resources before moving in. If meters are not installed, record this in the certificate and ask the developer for the procedure for calculating charges.

Check the personal account: contact the servicing organisation or the HOA to make sure the account is opened in your name and has no arrears from previous periods. If there is a debt, demand that it be excluded. A statement of the settlement status confirms that there is no debt.

Secure the division of payment periods: in the contract with the servicing organisation or in the acceptance certificate, state that the developer bears the costs until the date the apartment is handed over, and you bear them after that. This is in line with the Law of the Republic of Kazakhstan on Shared Participation in Housing Construction.

• Record the readings of all meters and their serial numbers in the acceptance certificate.
• Check the personal account: no debt and correct details.
• Secure the division of payment periods: the developer before handover, the owner after.
• Keep the acceptance certificate, settlement statements and payment receipts.
• Submit meter readings every month within the established deadlines.
• Enter into direct contracts with utility providers.