Experience in Developing and Maintaining the Real Estate Infrastructure in Azerbaijan

Karam HasanovChairperson of the State Committee on Property Issues,

the Republic of Azerbaijan

Vienna, 16 October 2014

General information about the Republic of Azerbaijan

• Geographical positionGeographical position - - CaucasusCaucasus

• TerritoryTerritory - 86- 86,,660000 sq sq kmkm

• PopulationPopulation - 9.5 mil- 9.5 millilion on (2014)(2014)

• CapitalCapital - Bak- Bakuu

• Date of independence Date of independence - - 18 18 OctoberOctober 19911991

2

Periods of developing of real estate infrastructure in

Azerbaijan• 1991 – 2006 - private ownership created,

and legislation concerning proprietary relations developed

• 2006 – 2009 - legal base improved

• After 2009 - registration started being centralized

3

1991 – 2006 The heritage of the Soviet

Union: the absolute hegemony of state property

• All real estates, excluding small exceptions, were state property, when the Republic of Azerbaijan re-gained its state independency in 1991.

• The exception is private resident houses built within citizens’ own means.

4

1991-2006:Arising of private property

• The reforms in real estate infrastructure began only in mid 1990s

• In connection with transition to the liberal economy there were approved some legislation acts (e.g. Law on Bases of Agrarian Reform, Law on Land Reform, etc.)

• Azerbaijan began reforms on privatization of properties of kolkhozes and sovkhozes and houses of state.

• As a result of reforms new - municipal property was formed.

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1991-2006:Arising of private property

(contd)• Registration was conducted by

different bodies:Land parcels – by the State Land and

Cartography Committee, Residential houses – by BTI Registration

Offices,Privatized state properties and commercial

objects built within citizens’ and firms’ own means – by the State Committee for Management of State Property.

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2006 – 2009:State Service for

Registration of Real Estate• Legislation base has been improved in

order to establish a unit to initiate unified registration of titles, because conduction of real estate titles in different government units did not meet the requirements of developing real estate market:

Law “On State Register of Real Estate” adopted

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2006 – 2009:State Service for

Registration of Real Estate• Once the Law “On State Register of Real

Estate” entered into force, all types of real estate titles started being registered by the unified registration unit:

Since March 2006 it was initiated to grant the legal owners with excerpts confirming real estate titles

• New Apartment Code entered into force on 1 October 2009.

• Town Building and Construction Code adopted in 2012.

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Period after 2009

• The State Service for Registration of Real Estate under the State Committee on Property Issues includes the Central Office operating in Baku, 18 territorial offices and 50 regional branches.

• State registry of real estate is conducted in paper and electronically in National Registration System of Real Estate.

• State registration of titles is based on the application directly submitted by right holder or his/her lawyer, or by notary as envisaged in the Law “On State Register of Real Estate”.

• Territorial offices of the Service are self-financing. • In 2013 property titles of 177,118 real estate

registered by the registration unit.• By the end of 2014 it is expected to register

195,000 real estate property titles.

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Period after 2009

• Doing Business reports list Azerbaijan as one of the leading reformer countries.

• “Real Estate Registration Project” is under implementation in accordance with the Loan Agreement signed between the Government of Azerbaijan and the International Bank for Reconstruction and Development.

10

Period after 2009

• 27 e-services are provided by the State Committee on Property Issues:

Receipt of requests and documents for preparing real estate cadastral data and providing cadastral services

Receipt of requests and documents for granting addresses to real estate objects and issuing certificates from address registry database, excerpts from address maps and other address data

Receipt of requests and documents for issuing excerpts on real estate

Receipt of requests and documents for state registration of real estate mortgage

Receipt of requests and documents for providing information from state registry of real estate, etc.

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Period after 2009

1.Acceptance of reference from the state registry on real estate description, stately registered rights and their limitations.

2.Notarial approval of sale contracts. 3.Appeal of rightholder for registration.4.State registration of rights.

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He wants to get non-encumbran

ce certificate.

He gets non-

encumbrance

certificate.

2nd step 3rd stepAgreeme

nt on purchase

notary

seller

buyerHe wants to get extract on property

rights.

4th step He gets extract. 5th step

1st step

He wants to get non-

encumbrance

certificate

notary

seller

buyer

He gets extract

2nd step

SSRRE under SCPI

Agreement on purchase

1st step

FIGURE OF REGISTERED REAL ESTATES 15

Thank you for your attention! 16