Notary public conducts a title search
Agency : Notary public office
The buyer and the seller visit the Notary Public at the Land Registry and delivers the required documents.
The documentation shall include:
- Property title
- Seller’s cadastral package of documents
- Documents showing no outstanding property taxes and utilities bills
- Technical passport of the property (according to Article 144.2 of the Civil Code, amended by the law of the Republic of Azerbaijan No. 201-IVQD dated September 30, 2011 “On Making Amendments to the Civil Code of the Republic of Azerbaijan”, the notary certifies the agreement, which transfers immovable property in accordance with the technical specifications of such immovable property as recorded in the Real Estate State Registrar Service).
The notary will check all documents, conduct a title search. Public notaries have full access to the e-government portal which is backed by the state registry, check encumbrances, including if there is a court order or judgment of the court, foreclosure order, pledge, bankruptcy. The new website is https://asan.gov.az/en
The buyer will be given a payment slip to deposit the agreed amount into a depository account of the notary.
Time and cost: Less than one day (online), AZN 10
Payment of agreed amount and transfer tax in the depository account of the Public Notary.
Agency : Commercial Bank
The buyer must place the agreed amount to a depository account of the notary. The bank will charge a fee is 0.2% of the value, paid by the buyer and the simplified tax is paid by the seller.
Since January 1, 2017, the seller is required to pay taxes on the lands and living /non-living quarters. There are zones in Azerbaijan and each has a specific tax percentage. The tax amount depends on the square feet of the property being sold. Baku is sub-divided into 12 zones. The Doing Business case study warehouse is most likely to be in zone 12. This tax amount will be automatically deducted from the notary account before the seller recovers the amount of the sale.
The notary who approves the contract for the sale of real estate will:
- calculates simplified tax for each transaction;
- withholds the calculated simplified tax from the payment base;
- pays taxes to the state budget within 1 banking day;
- Presents the “declaration on simplified tax withholding by the notary from the payment base” to the tax authority no later than the 20th of the month following the reporting month.
Once payment is made at the Bank, the buyer will bring back the proof of payment to the notary. The sale and purchase agreement can now be signed and notarized.
Time and cost: 1 day, AZN 26,178.11 (Size of land (557.4 sq.m) x 0.5(base amount) x 1.2 (coefficient for zone 12) = + Size of building (929 sq.m) x ANZ 15 (base amount) x 1.2 (coefficient for zone 12) x 1.5 ( the tax for non-living areas is calculated by application of 1,5 rising coefficient) + 0.2% bank fee charges)
Notarization of sale-purchase agreement
Agency : Public Notary’s Office
Once all fees are deposited in the Notary’s account and the proof of payment has been provided to the Notary, the sale-purchase agreement can be signed by both parties and notarized.
Under the law, the sale-purchase agreement and the transfer and acceptance act duly signed by both parties must be notarized. There is no legal requirement for the agreement to be prepared by a lawyer. Accordingly, the parties are free to prepare the agreement themselves. The stamp duty is paid to the notary, which in turn shall transfer to amount to the Treasury within two banking days since the date of receipt of the duty. However, in practice the stamp duty can be paid at a commercial bank. If the parties pay at the bank, receipt of payment should be submitted.
The documentation shall include:
- Sale-purchase agreement and transfer and acceptance act
- Registration certificates
- Seller’s cadastral package of documents
- Corporate documents of the parties (e.g. charters, foundation agreements, powers of attorney)
- Technical passport of the property (according to Article 144.2 of the Civil Code, amended by the law of the Republic of Azerbaijan No. 201-IVQD dated September 30, 2011 “On Making Amendments to the Civil Code of the Republic of Azerbaijan”, the notary certifies the agreement, which transfers immovable property in accordance with the technical specifications of such immovable property as recorded in the Real Estate State Registrar Service)
- Deposit slip (the buyer presents the deposit slip from the bank, confirming that the funds were properly deposited before notary notarizes the transfer agreement. After the completion of transaction, the notary write a cheque payable to the seller to be presented to the bank to collect the purchase price for the property).
Time and cost: 1 day, AZN 250
The buyer obtains the updated title
Agency : Real Estate State Register Service under State Committee on Property Issues
The notary registers the transfer of a property in e-Notary system and sends the notification to the land cadaster. Then the notary issues a slip confirming that the transfer of a property was completed. Then the buyer returns to the land registry to obtain the hard copy of the Property right certificate.
Service fees for building:
Technical re-inventory of real estate (service fee of this section is determined by applying 0,2 ratio to relevant tariffs of 1st section, but minimum amount must not be under AZN 14,0)
Non-residential buildings (facilities), property complexes and enterprises.
- up to 50 m 2 50.0
- for every 1 m 2 area exceeding 50 m 2 to 100 m 2 1.40
- for every 1 m 2 area exceeding 100 m 2 to 200 m 2 1.0
- For every 1 m 2 area exceeding 200 m 2 to 300 m 2 0.95
- for every 1 m 2 area exceeding 300 m 2 to 400 m 2 0.90
- for every 1 m 2 area, exceeding 400 m 2 to 500 m 2 0.85
- for every 1 m 2 area exceeding 500 m 2 to 600 m 2 0.80
- for every 1 m 2 area exceeding 600 m 2 to 700 m 2 0.75
- for every 1 m 2 area exceeding 700 m 2 to 800 m 2 0.70
Land Plot – Other land plots
- When the area is less than 0,01 hectares = 60
- For each 0.01 ha of 0.01 hectares, when the area is from 0.01 ha to 0.10 ha = 7
Time and cost: 2 days, AZN 317.88
- AZN 159.48 payable for the registration of a title transfer for the warehouse of 929 square meters of the total area;
- AZN 18.4 payable for the registration of a title transfer for the land of 557.4 square meters of the total land area;
- AZN 50 state duty for technical passport;
- AZN 30 state duty for an extract;
- AZN 60 official service fee
