07 Jan Real Estate/ Construction
Real Estate/ Construction
Construction, land and immovable property are key parts of real estate market in Mongolia. Until 1990: During the years of centrally planned economy the government was solely responsible for financing construction and apartment buildings were being distributed without any fee. Government was the only subject entitled to own land. In the period between 1990-2003 supply of apartments basically stopped and the government focused on developing state policy and legal environment to solve issues concerning apartment supply in the free market. As a result, Land Law, State Policy on Apartment, Law on Apartment, Law on Privatization of Apartments and Law on Joint Ownership Apartments were passed by the parliament during 1994-1999. Basic laws regulating social relations were passed and citizens were enabled to own land and immovable properties. During this period, private financing was made in construction sector and this was the first time that the construction was started since 90s. Then in 2003-2006 foundation of the mortgage primary market was established and banks started to provide construction and apartment loans and this has become common product in banking sector. This also improved cooperation of construction and banking sector and enabled apartment demand and supply to be fulfilled by private financing. Since 2006 state policy to develop mortgage secondary market started to implement and legal environment and institutions were developed accordingly. MDS KhanLex has a wide range of experience of providing legal service on transactions related to construction, immovable property and land. We work as an external legal advisor on issuance of apartment loan mortgage security in the total amount of MNT 2.3 trillion. Our Real Estate/ Construction practice is led by Sugarnyam Peljee.