The Problems of Real Estate registration in Azerbaijan - Policy Paper

In Azerbaijan, property rights are guaranteed not only at the constitutional level, but also by the norms of international law. However, there are serious problems in the country in the field of property rights.

These problems represented not only by the expropriation of property rights for state and public needs, but also by the loss of those or other factors, as well as the achievement of these rights, their acquisition and implementation.

A large part of the population cannot effectively possess the property and enjoy their property rights. This applies to both documented and non-documented property. The property rights of persons registered in the state register of real estate are guaranteed by domestic law to some degree, but those whose property is not documented are completely deprived of such security.

Real estate registries are currently under the registration of rights over real estate, as well as territorial offices of the State Real Estate Register Service and ASAN service centres. According to official figures, in 2017, 161500 real estate objects were registered by these authorities

1. Legislative shortcomings: The essence of the problems in the registry is that some legislative contradictions lead to the fact that the definition of "property right" in the Civil Code is inaccurate and inapplicable. This, in turn, leads to the non-recognition of the property owned by individuals and legal entities which was acquired legally but was not registered in the State Register. At the same time, this situation leads to uncertainty at the "length of the acquisition" concept established by the Article 179 of the Civil Code. Thus, on the one hand, it is established that the acquisition of the right to property starts at the date of the legal acquisition of the property, on the other hand, the property right occurs when the real estate is registered in the state register of the real estate. Also, according to the decision of the Constitutional Court of 28 January 2002, the first rights to the acquisition can be created from 2030. On the other hand, according to Article 180 § 2 of the Civil Code, it was determined that the person making the arbitrary construction do not acquire the right to property in any case.

2. The problem of arbitrary (illegal) construction: The construction and land plots, which are not registered in the register of real estate, are considered to be arbitrary construction and arbitrarily taken land segments, and according to unofficial information, there are about 500,000 such types of buildings in Azerbaijan. The reasons for the occurrence of spontaneous construction in Azerbaijan can be grouped as follows:

 historical, political, social and economic conditions leading to urbanization;

 lack of planning;

 contradictory and complicated legislation;

 extreme bureaucracy in the field of land acquisition and construction permits resulting in corruption;

 lack of mechanisms to access housing, poverty and marginalization;

 failure by state bodies and local self-governing bodies to follow urban planning rules;

 unlawful issuance and holding illegal construction of lands, in contrary to their intended purpose (for example, agricultural lands used as a residential area);

 mass influx of IDPs (Karabakh war, deportation from Armenia);

 political conjugation and so on.

The failure to solve this problem has led to the following consequences:

• In any case, the courts do not recognize property rights over of the unauthorized buildings in the country. Although international law and the European Court of Human Rights recognize certain rights to such buildings under certain conditions;

• More than 2 million people in the country, with more than 500,000 unlicensed homes, are not officially registered on their actual place of residence and their registered official addresses are formal;

• Citizens who cannot be registered in their actual place of residence experience problems with legal addresses in their relations with governing bodies. At the same time this situation creates certain problems in the country's internal migration;

• As these persons are not included in voter lists of their place of residence at elections of all stations, they are usually unable to participate in elections and create problems for voter lists;

• About 500,000 buildings in the country and land plots under those buildings are not involved in property and land tax and large amounts of tax money does not flow to the budget (let's note that in some cases municipalities illegally collect such taxes and it is not known where the money proceeds). In addition, payments for actual purchase and rent of such buildings and lands are also exempt from the budget;

• Social infrastructure and communications projects are not implemented or poorly implemented in the areas where these buildings are located;

• Most of these areas do not have kindergartens, schools, cultural facilities and leisure centres.

It should be noted that, even though many initiatives have been made by the state authorities so far, they have failed and this problem still retains its relevance and seriousness in our country.

1. Absence of a single database;

2. Inclusion in the Register until the relevant State Commission recognized the property;

3. Failure to identify protected zones of loaded land plots where pipelines are passing;

4. Unclear boundaries of land plots;

5. Failure to provide owners with registry and cadastral information on immovable property;

6. Approval by the notary offices of real estate on sale and other operations;

7. Bureaucratic barriers, red tape and corruption;

8. The only way to resolve all problems with the registry is through the courts;

9. People's unawareness.