Simplified Legalization of Unregistered Real Estate

The Azerbaijani presidential decree dated October 31 changed the "List of documents certifying the acquisition of property rights acquired and arisen before the entry into force of the Law of Azerbaijan Republic "On state register of real estate."

According to the amendments, expanded the list of documents on the basis of which the constructed facilities will be included in the state register of real estate. It is only on real property created before the adoption of the Law "On state registration of real property", approved on 13 January 2015.

Now, in addition to the authorized body, recognized are also decisions of other organizations on the resolution on the allocation of land for construction.

Recognized are decisions on allocation of land for construction made by complex state farms staff meetings, by enterprises created by them and by their heads’ orders.

Adding to the registry is done only on the basis of documents confirming the location of the site allocated for the construction. These are documents issued by the company or government archives.

Response from the authorized state bodies to a request of the owner of land for the purpose of entry in the register is to be given in 10 days.

According to statistics, only in Baku on January 1, 2015, there were 400 thousand unregistered private homes.

The process of settlement of the issue of unregistered homes started in the spring of 2011, when President Ilham Aliyev instructed the Baku Executive Power to establish a mechanism to legitimize the disputed buildings. In 2012, a state commission was created to address the issue of registration of main pipelines and power lines located in the territories of SOCAR.

Finally, in January 2015, the list of documents to facilitate the entry into the register of unregistered property was approved.

Registration of immovable property on the principle of "one window" started on October 1, this year.

Simplification of real estate registration is imposed by the necessity of its compulsory insurance coverage, as well as the introduction of compulsory insurance of civil liability for its operation. Currently compulsory insurance covers about 30% of real estate in the country. And this is a substantial loss for the insurance industry and the budget. In addition, there is a drop in the volume of property insurance. According to the Bureau on Compulsory Insurance, the number of policies on compulsory insurance of real estate for the year fell by 38%. -0-