Changes in Acquiring Property with a Mortgage in Armenia: Draft Law

Citizens, including investors located abroad, will be able to purchase property in the Republic of Armenia with mortgage financing without the need for notarial certification and without being physically present. This was announced by Suren Tovmasyan, the head of the Republic of Armenia’s Cadastre Committee, during a session of the National Assembly’s Economic Commission while presenting the relevant draft law.

Tovmasyan explained that the changes pertain to the tripartite agreements involving the bank or the lending organization, the buyer, and the seller.
“This amendment establishes the possibility for such agreements to be submitted for state registration of rights without notarial certification. The bank, as the mortgage lender, will submit the agreement to the Cadastre Committee electronically,” he stated.

According to Tovmasyan, the initiative aims at two main objectives: simplifying processes and reducing costs, as citizens will no longer need notarial validation and the issuance of powers of attorney. The second goal is the development of the real estate market, which will enable investments in Armenia's real estate sector, even while being abroad.
“If a person living abroad wishes to invest and purchase property with mortgage financing, they can sign the contract remotely without the need to visit Armenia. The bank will submit the agreement electronically to the Cadastre Committee, which will serve as the basis for state registration of rights,” emphasized the committee head.

He added that citizens will have the option to choose whether to utilize the new digital mechanism or to retain the traditional method of notarial certification. After the law comes into force, the government will also establish a unified template for contracts, which will be used for the registration of these transactions.