Transfer of Property Act at Armenia
Armenia does not have a specific legal instrument titled the "Transfer of Property Act" like some other countries (e.g., India). However, the transfer of property in Armenia is governed by various provisions under the Civil Code of the Republic of Armenia, which includes the regulation of property rights, ownership, and the transfer of such rights.
Here is a brief overview of the legal framework for property transfer in Armenia:
1. Civil Code of Armenia
The Civil Code of Armenia serves as the primary legislation governing property rights, including the transfer of property. The provisions regarding the transfer of ownership, rights, and property transactions are outlined in the general part of the Civil Code, primarily focused on contracts, property rights, and obligations.
The Civil Code was adopted in 1998 and has undergone various amendments since then to modernize the legal framework and align it with international standards.
2. Types of Property Transfers
Under the Civil Code, the transfer of property in Armenia is typically categorized as either movable property (e.g., cars, personal goods) or immovable property (e.g., land, real estate).
2.1 Transfer of Movable Property
The transfer of movable property in Armenia is generally governed by the rules of sale, gift, or exchange contracts as laid out in the Civil Code.
The ownership transfer of movable property takes place through delivery (i.e., the actual handover of the item) and, in some cases, payment or other forms of agreement, depending on the nature of the contract.
2.2 Transfer of Immovable Property
The transfer of immovable property (real estate) is more formalized and requires registration with the Cadastre (the national land registry). This is to ensure the transfer of legal ownership.
A written contract is required for the transfer of immovable property, and this contract must be notarized. The registration with the Cadastre is the final step in the legal transfer process, which officially recognizes the new owner.
The Civil Code outlines the requirement that the contract for the transfer of real estate must include details such as the parties involved, property description, and price.
3. Contracts for Property Transfer
The primary contracts used for transferring property are sale contracts, gift contracts, and exchange contracts. The general requirements for these contracts are governed by the Civil Code.
Sale Contract: The most common contract used for property transfer, requiring the buyer to pay a price and the seller to deliver the property.
Gift Contract: The transfer of property without compensation. The transfer of property through a gift contract is subject to certain legal formalities, especially if the property is immovable.
Exchange Contract: Property is transferred in exchange for another property. This is a less common form of property transfer.
4. Registration and Formalities
In Armenia, the transfer of immovable property must be registered with the Real Estate Cadastre (state land registry). This is a key step to ensuring the legal validity of the transfer.
Registration includes verifying the details of the property, the parties involved, and any encumbrances or mortgages that might be attached to the property.
After completing the registration, the buyer receives an official certificate of ownership.
5. Transfer by Inheritance
The inheritance of property in Armenia is also governed by the Civil Code, which outlines how ownership is transferred to heirs upon the death of a property owner.
The inheritance process typically requires the validation of a will (if one exists) and, if necessary, the division of the estate according to Armenian inheritance law. Heirs must also register the inherited property with the Cadastre.
6. Rights and Obligations of the Parties
The seller is obliged to deliver the property in the agreed-upon condition, and the buyer must pay the agreed price for the property. In the case of immovable property, the buyer assumes full ownership after registration.
If any disputes arise regarding the transfer of property, they can be resolved through Armenian courts. These disputes can relate to issues such as property defects, title disputes, or issues with the contract’s validity.
7. Foreign Ownership of Property
Foreign nationals and entities are allowed to own property in Armenia, subject to certain restrictions. For example, foreigners are restricted from owning land in agricultural zones but can own property in urban areas and other types of real estate.
Foreigners must also comply with the same procedural requirements for property transfer as Armenian citizens, including notarization and registration with the Cadastre.
8. Transfer of Property with Encumbrances
If a property has encumbrances (such as mortgages or liens), these must be disclosed in the transfer contract. The buyer must take these into account when acquiring the property.
In cases where there is a mortgage or lien on the property, the new owner may assume responsibility for it, unless otherwise stipulated in the agreement.
Conclusion
In Armenia, property transfer is regulated by the Civil Code, which sets out the rules for the transfer of ownership of both movable and immovable property. For immovable property, the transfer requires a formal contract, notarization, and registration with the Cadastre. The process is similar to that in other civil law countries and aims to ensure that the ownership and rights associated with the property are properly documented and legally recognized. Additionally, Armenia’s property laws also allow for foreign ownership of property within certain restrictions, ensuring a relatively open market for real estate transactions.
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