AZE.US
Documentation remains one of the most sensitive issues for homebuyers in Azerbaijan’s real estate market, especially when properties without a formal title extract are put up for sale.
In many cases, buyers are drawn in by lower prices and agree to rely on a power of attorney or municipal papers instead of full ownership documents. Experts warn that this approach can later lead to serious legal disputes and property-related problems.
Economist Vugar Oruj said a power of attorney does not transfer ownership rights from one person to another. According to him, this method is most commonly used in the sale of undocumented houses, where the owner has no formal title extract and tries to complete the deal through proxy documents instead. From a legal standpoint, he said, that is not considered a solid basis for ownership transfer.
He also warned buyers to be cautious about properties sold on the basis of municipal documents. In his words, such paperwork may only show that a municipality once granted some form of permission, but it does not mean the property itself has a proper title extract. In many cases, he said, municipal documents turn out to be fake, expire, or remain the only paperwork attached to a property because no official title was ever issued.
For that reason, he said, such documents should not be considered reliable. Oruj stressed that homes with a formal title extract issued by the State Property Service and cadastral authorities are legally much safer. Such properties can be bought and sold through a нотариально certified transaction, reducing the risk of disputes later on.
He recommended that buyers give preference to homes backed by these documents in order to avoid legal trouble in the future. In his words, buying any property without a formal title extract is generally not advisable.
The economist added that low-income buyers and newly formed families are often the ones who turn to undocumented homes because they are cheaper. That, he said, is understandable, but in the end it can create far more serious problems than the initial savings are worth.
AZE.US