Regardless of your purpose for purchasing a real estate—whether for personal residence or investment—and regardless of its location—whether in a new building or the secondary market, in the city center or the outskirts—you need to understand what steps to take to ensure a smooth and successful transaction.
Don't want to make a mistake? Pay attention to the following:
• An unusually low price may indicate issues with documentation.
• An incompetent owner, whose dishonest relatives may be taking advantage of their condition.
• Undisclosed heirs or unaccounted rights of minors and disabled children.
• A sale through power of attorney, which may be invalid (expired) or forged.
• An illegally privatized apartment.
• Seller bankruptcy, which could lead to contract annulment.
• Limited viewing hours, which could signal noisy neighbors or fraudulent schemes.
What is the Real Estate Buying Process in Armenia?
Buying a real estate involves risks, and to minimize them, it’s advisable to follow a structured plan.
1. Initial Preparation
• Define your purpose for purchasing the apartment or other kind of real estate.
• Analyze the real estate market to understand prices, locations, and layouts.
• Decide whether to buy independently or through a real estate agency.
2. Financial Considerations
• How much are you willing to spend?
• Do you have the full amount, or will you require a mortgage?
• Can you afford the down payment?
3. Apartment Selection
• Filter out fake listings and high-risk properties.
• Arrange a viewing at a mutually convenient time.
• Request ownership documents for verification.
4. Negotiation
• Agreed on the price?
• Verified all documents?
• Draft and sign a deposit agreement to secure the transaction.
5. Completing the Transaction
• The contract is signed in four copies (for the seller, buyer, cadastre, and real estate agency).
• Payment is made via bank transfer (since July 1, 2022, all financial transactions exceeding 300,000 AMD in Armenia must be conducted via non-cash payment).
• Documents are submitted to the cadastre (the notary initiates the property transfer process).
Important to Know: In Armenia, property ownership certificates are issued electronically. A PDF document with a unique ID and password can be downloaded from e-cadastre.am.
• The buyer receives the keys, and the agent’s commission is paid as per the agreement.
What Should You Do First When Buying a Real Estate?
Always check the legal status of the apartment. Ensure you obtain:
• The seller’s passport
• A certificate confirming their legal capacity
• Notarized consent from the seller’s spouse
• A notarized power of attorney (if applicable)
• An extract from the Unified State Real Estate Cadastre confirming ownership.
What to Do After Purchasing a Real Estate?
Once you receive the ownership certificate, you should:
• Register at the new address
• Sign contracts for utility services
Important to Know: In Armenia, you need to visit the following offices to sign utility contracts:
• ENA (electricity),
• Gazprom (gas supply),
• Veolia Jur (water supply).
This article highlights the key risks and steps to consider when buying a real estate. Have questions? Contact a real estate agency—experienced professionals will guide you through the entire process!
