Buying Property in Armenia: Legal Due Diligence and Transaction Security

Purchasing real estate is always a significant and responsible step, and acquiring property in another country requires heightened attention to legal details. Armenia attracts investors and relocators with its transparent legislation and liberal approach toward foreign nationals; however, the purchasing procedure has specific legal nuances that must be taken into account.

In this article, we explain how to safely purchase real estate in Armenia, at which stages risks may arise, and why legal support is not a formality but a key safeguard for your investments.

Can Foreigners Buy Property in Armenia?

Armenian legislation is among the most open in the region. Foreign individuals and legal entities enjoy the same rights as Armenian citizens to purchase, own, lease, and dispose of real estate.

Key points to consider:

• Residential and commercial property: Foreigners may freely purchase apartments, private houses, offices, and commercial premises.

• Land plots: Foreign nationals are not allowed to own land directly, particularly agricultural land.

• Legal options for land use: If a property includes a land plot, Armenian law provides lawful mechanisms for land use by foreigners. Specifically, land may be granted under long-term lease agreements (up to 99 years). Additionally, land ownership is permitted through a legal entity registered in Armenia, which may hold land ownership rights in accordance with the law.

Stages of Purchasing Real Estate

The property acquisition process in Armenia is relatively transparent and usually takes from several days to a few weeks.

1. Selection of the property and preliminary negotiations on price and terms.

2. Legal due diligence of the property and the seller.

3. Execution of the sale and purchase agreement before a notary or directly at the territorial office of the Cadastre.

4. State registration of ownership rights with the Cadastre Committee within 30 business days.

5. Receipt of the ownership certificate, after which you officially become the owner.

Legal Due Diligence: What Should Be Checked?

A standard extract from the Cadastre reflects only basic information. Comprehensive legal due diligence includes:

• Title clearance: Verification of the ownership history to exclude claims from former spouses or heirs.

• Encumbrances and restrictions: Absence of mortgages, court arrests, or prohibitions on registration actions.

• Unauthorized alterations: Armenian authorities strictly monitor compliance between the actual layout and cadastral records. Illegal reconstructions may block the transaction.

• Outstanding liabilities: Verification of the absence of property tax arrears and utility debts.

Important: Since 2022, real estate transactions in Armenia must be settled exclusively via non-cash payments. Cash payments render the transaction legally void.

Sale and Purchase Agreement

The agreement must be executed in the Armenian language. A professional translation is provided for the buyer. The contract must include:

• Accurate description of the property and its cadastral code.

• Purchase price and payment schedule (only in Armenian drams, in accordance with the Law on Currency Regulation and Currency Control).

• Deadlines for vacating the property and handing over the keys, as well as other essential terms.

Common Mistakes Made by Buyers

1. Purchasing through a power of attorney without verifying the scope of authority.

2. Ignoring the consent of a spouse or co-owners. If the seller is married, the absence of notarized spousal consent creates a high risk of future disputes.

3. Understating the purchase price in the contract. In case of termination, the buyer may only recover the amount specified in the agreement.

4. Failure to inspect the property physically. Legal clearance does not guarantee the absence of structural defects or neighborhood issues.

Why Engage Legal Professionals?

A lawyer represents exclusively your interests, not those of the seller or the real estate agent. Professional legal support includes document review, secure control of fund transfers, interaction with state authorities, and minimization of tax and legal risks.

If you want to be confident in the safety of your investments in Armenia, ArmLegal specialists will conduct a full legal audit of the property and provide comprehensive “turnkey” legal support for your transaction.

FAQ

What can go wrong when purchasing property in Armenia?
Even if documents appear formally “clean,” hidden risks may exist, such as unauthorized alterations, undisclosed co-owners, cadastral errors, or restrictions not reflected in standard extracts. These issues often emerge after registration, when reversing the transaction becomes extremely difficult. Legal support helps identify such risks before signing the agreement and transferring funds.

Who protects the buyer’s interests during the transaction?
Neither the notary nor the Cadastre represents the buyer’s interests; they only verify formal compliance of documents. The only party acting exclusively in the buyer’s interests is the buyer’s lawyer. This is why ArmLegal clients engage legal professionals to accompany the transaction from due diligence to ownership registration.

Why is it important to control settlements and contract terms instead of signing a standard template?
In Armenian practice, contractual details are crucial. Payment procedures, deadlines for vacating the property, liability of the parties, and termination clauses directly affect the buyer’s ability to protect their rights. Standard contracts do not account for the specific risks of a particular property. ArmLegal lawyers tailor transaction terms to the buyer’s interests, eliminating scenarios in which invested funds may be jeopardized.