Armenian Legislation. Comments to some real estate problems

What is a transaction of buying and selling?

The transaction of buying and selling (purchase/sale) is a kind of contract. It becomes legal only when it is notarized and registered in a monthly period by appropriate state bodies.
There must be fixed in the contract the price and the object, the rights and duties of the buyer and seller, connected with the accomplishment of the transaction.

The necessary documents for conclusion a buying /selling transaction

For the transaction one needs the following documents:

Agreement of bodies of guardianship if any persons under age are registered in the apartment.

In what case a house, apartment can be sold.

The Real estate can be a subject of the contract, when it belongs to RA, municipal committees, natural or legal person with property rights (art. 166 SC Armenia) without rights of the 3 rd person, excluding the cases when buyer agrees to buy real estate with rights of the 3rd person. The seller obligates to inform the buyer about 3rd person's rights to the property. Otherwise, according to the (art. 476 SC Armenia) it comes possible for a buyer to demand the price decrease or to cancel bargain in case if the seller can't prove that the buyer was aware beforehand or must have had an idea of the third person's right to the property.

Can a foreigner purchase real estate in Armenia?

According to the legislation of Armenia any foreign citizen and also person without citizenship is permitted to purchase any type of property ( residential, industrial, commercial). On the other hand, foreign citizens and persons without citizenship, unlike citizens of RA have no rights to ownership on land (industrial as well, as agricultural) on the territory of Armenia according to art. 2 and 5 of "Land Code". Even if a foreigner comes into ownership of land in Armenia as a result of inheritance or a gift, he must liquidate (by sale or other transfer) this property within one year.

How are mortgage duties registered?

Mortgage duties are registered through the appropriate written contract signing which must include the following:

1. Names of the sides, their addresses.


2. Mortgage subject


3. The essence of the mortgage duty, its size and dates.

In cases foreseen by legislation, mortgage duties have to be notarized and mortgage rights to be registered in appropriate state bodies of registry. The mortgage contract could be canceled, if the above mentioned conditions are ignored.

The conditions for real estate inheritance

The heir to come into the right to the heritage property has to get in the notary office the certificate of right to property inheritance, which is given on representing the following documents:

1. Death Certificate of the of the inheritance giver.
   
2. Last residence place's Certificate of the inheritance giver
   
3. The copy of marriage Certificate of the inheritance giver.
   
4. Inheritance giver's right Certificate on the property.
   
5. Heir's Passport.
   
6. Heir's birth Certificate copies.

The heir has to apply to the appropriate state bodies of registry. (SC Armenia) to get the Certificate of right to property inheritance not later than in 6 month period after receiving the certificate of inheritance right in notary office.

The registration for right to property inheritance in case, if the heir is absent.

The registration is possible. To arrange this cases any physical or juridical person, as representative, must be authorized to carry out all the necessary actions. Notarized letter of attorney must be sent to the authorized person, for confirmation the above mentioned authorizations. In case one has such kind of problems and no one to entrust the registration of necessary documents, some mechanisms have been worked out, allowing to obtain a legal right to ownership of property without any efforts.