State Registration of Real Estate: Sale-purchase, Rent and Lease

Mayıs 30, 20220

According to the legislation, real estate is land plots, buildings, structures and other things that are firmly attached to the land (inseparable from it), ie objects that cannot be relocated without disproportionate damage to their allocation. It is sufficient to have one of the grounds specified in the legislation for the state registration of real estate. To get acquainted with these grounds, you can refer to the Law of the Republic of Azerbaijan “On the State Register of Real Estate”.

The state registration of rights to real estate is carried out by the public legal entity of the State Cadastre and Register of Real Estate of the State Service for Property Issues under the Ministry of Economy of the Republic of Azerbaijan.

I. Sale-purchase, lease and rent of real estate

As we have mentioned, there are several grounds for acquiring real estate rights. One of these grounds is the existence of notarized contracts on real estate, certificates on the right of inheritance, the right of share ownership in the common property of the spouses, certificates on the acquisition of houses and apartments at the open auction, housing certificates.

A. Purchase and sale of real estate

Under the contract of sale of real estate, the seller undertakes to transfer the land, house, building, installation, apartment or other real estate to the ownership of the buyer.

It should be noted that the costs of notarization of the contract of sale and registration of real estate in the state register are borne by the buyer.

B. Rent of the real estate

Under a property rent agreement, the tenor undertakes to transfer the item to the tenant for use, and the tenant undertakes to pay the rent to the tenor. The legal relations under the rent agreement shall be terminated upon the expiration of the term of the agreement. The parties shall determine this period by mutual agreement.

As in the contract of sale, the tenor owns his real estate, ie house, building, apartment, facility, etc. can be used by the tenant. It should be noted that the lease agreement between the parties must be notarized. The following documents must be submitted:

  • Notarized copy of the document confirming the right of ownership over the property;
  • If the owner is married, his / her marriage certificate;
  • Notarized consent of the husband (wife) to the rent of real estate;
  • Notarized consent of all registered adult family members to be registered at the place of residence in the house, apartment, garden and cottage;
  • Certificate from the state register on the description of real estate, state registered rights and their restrictions (encumbrances).

C. Leasing of real estate

We noted that one of the grounds for state registration of rights to real estate is related to the lease of real estate.

According to the Civil Code, a lease agreement is a property lease agreement. Under this agreement, the lessor gives the lessee the right to use the leased object or right, as well as the right to use the proceeds and receive income. The lessee is obliged to pay a fixed rent to the lessor. The subject of lease can be land plots, buildings, movable property, rights and enterprises.

The following documents must be submitted to approve the lease agreement:

  1. Document confirming the right of ownership over the property;
  2. If the owner is married, his / her marriage certificate;
  3. Notarized consent of the husband (wife) to the lease of real estate;
  4. Certificate from the state register on the description of real estate, state registered rights and their restrictions (encumbrances).

D. Rent or lease?

In many cases, citizens have difficulty understanding the difference between renting and leasing property. In this regard, it should be noted that when renting property, the tenant can not use it for commercial purposes. In contrast, in a lease agreement, the lessee has the right to use the leased facility or right, as well as to use the proceeds and receive income.

II. Real estate purchase and sale procedure

The following documents are required when selling real estate:

  • A document confirming the right of ownership over the property;
  • Certificate issued by the State Real Estate Registry Service under the State Committee for Property Issues on whether there is encumbrance or arrest on the property (this certificate is issued by a notary at the time of purchase);
  • If the owner is married, his / her marriage certificate;
  • Notarized consent of the husband (wife) to the sale of real estate;
  • Notarized consent of all registered adult family members to be registered at the place of residence in the house, apartment, garden and cottage.

In order to register the rights to real estate during the purchase and sale, persons apply to the State Real Estate Cadastre and Register of the State Service for Property Issues under the Ministry of Economy of the Republic of Azerbaijan with the application and the documents attached to the application, the above list of documents. After that, the compliance of the information provided in the documents submitted by the institution with the information stored in the state register is carried out. In this case, it is determined whether there are contradictions between the declared rights and the registered rights, as well as other grounds for refusal of state registration of rights or suspension of state registration of rights. Finally, if there are no grounds for refusal or suspension of registration of rights, entries are made on the supporting documents and the relevant information is entered into the state register.

The state registration of rights shall be carried out in accordance with the procedure established by this law on the basis of an application submitted by the acquirer, ie the person himself or his representative acting on the basis of a power of attorney. The application must contain the surname, name, patronymic, address, identity document of the natural person, and the full name, address, registration certificate of the legal entity, full name and address of the executive authority, the content of the application and attached documents.

A. The importance of consulting lawyers when making a purchase

One of the most common problems we encounter in our daily lives is fraud and deception in the purchase and sale of real estate. Thus, it has become common for construction companies to sell the same apartment to several people. As it is known, extracts from residential buildings (from the state register of real estate) are issued only after the handover of the building, but some construction companies are already selling apartments while laying the foundation of the building.

It is important to prevent these scams and frauds, as well as to seek professional help to ensure the legal correctness of transactions.

As ACON LLC, we are pleased to provide you with legal assistance in the implementation of various actions on real estate such as purchase, lease, rent, etc.!

 

  1.  ACON – LAW AND INVESTMENT, Points to consider when investing in the Republic of Azerbaijan!,  https://acon.az/points-to-consider-when-investing-in-the-republic-of-azerbaijan/ (2022).

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