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November 9, 1991
Law of the Azerbaijan Republic
About property in Azerbaijan Republic
Section I. General
Clause 1. Proprietary right
1. Proprietary right in Azerbaijan Republic arises according to procedure
and on terms envisaged by legislation of Azerbaijan Republic.
2. The owner possess, uses and disposes of property belonging to him
at his own discretion.
The owner might delegate his authority in possession, use, disposal
of his property to other person, might use the property as security or
burden it in some other way, might transfer his property for possession
or management to the other person, he is also authorised to undertake any
actions concerning his property that do not contradict legislation. The
owner might use his property for accomplishment of any business and other
activity not prohibited by the Law.
3. Results of economic and other use of the property (products and
profits) belong to the owner of this property if not specified otherwise
by the Law or agreement.
4. When exercising his right for property the owner has the right,
on terms and within the limits envisaged by legislative acts of Azerbaijan
Republic and Nakhichevan Autonomous Republic, to conclude agreements with
citizens about use of their labour.
5. In some cases, on terms and within the limits envisaged by legislative
acts of Azerbaijan Republic and Nakhichevan Autonomous Republic, the owner
might be charged with obligation to allow limited use of his property by
the other persons.
6. Enjoyment of the proprietary right should not result in environmental
deterioration, violation of rights and interests of citizens, enterprises,
companies, organisations and state being under protection of Law.
Clause 2. Legislation of Azerbaijan Republic concerning property
1. Proprietary relationships in Azerbaijan Republic are governed by
Laws of Azerbaijan Republic and normative acts, interstate agreements issued
in connection therewith and also legislation of Nakhichevan Autonomous
Republic, acts of local Councils of People's Deputies issued within the
limits of their authority.
2. In connection with historical and cultural memorials specificity’s
of proprietary rights are determined by special legislative acts of Azerbaijan
Rights concerning creation and use of scientific, literary and art
works, inventions, innovations, industrial specimens, software and other
objects of intellectual property are controlled by Author's right and other
acts of Civilian Legislation and also intergovernmental agreements.
Clause 3. Objects of proprietary right
Land, its entrails, inner and territorial waters, continental shelf,
air basin, flora and fauna, enterprises, property complexes, buildings,
structures, equipment, raw and other materials, money, securities, other
property of industrial, social, cultural and other character, products
of intellectual and creative activity.
Clause 4. Subjects of proprietary right. Forms of property
1. Subjects of proprietary right in Azerbaijan Republic are Azerbaijan
Republic, Nakhichevan Autonomous Republic, local Councils of People's Deputies,
collective companies (co-operatives, economic companies and associations,
rental enterprises), public associations and religious organisations, citizens.
2. Property in Azerbaijan Republic might assume forms of state, collective
and private property. Within the limits of legislation of Azerbaijan Republic
property belonging to citizens and legal entities of Azerbaijan Republic
and other states might be united, with formation of mixed form of property.
Kind of mixed property is determined by status of the owners uniting their
3. Within the limits of legislation of Azerbaijan Republic foreign
states, their legal entities and citizens, international organisations
might possess property at the territory of Azerbaijan Republic.
4. The state will provide conditions necessary for development of various
forms of property and protection thereof. Establishment of limitations
or advantages concerning proprietary right depending on the kind of property
is not allowed.
Clause 5. Material rights
1. In cases provided for by the Law and also at the owner' discretion
other persons might be granted rights for possession, use and disposal
of the property, said persons shall exercise these rights within the limits
established by the Law or the owner of the property.
Persons exercising economic or other use of the property of the owner
on said terms shall enjoy the same guarantees of protection of their rights
and interests as the owner, if not specified otherwise by legislative acts
of Azerbaijan Republic and Nakhichevan Autonomous Republic.
2. The owner might register the property belonging thereto with the
established enterprise on terms of full economic activity.
Exercising economic activity in connection with the property registered
with it the enterprise possesses, uses and disposes of said property, accomplishes
any acts in connection therewith, not contradicting the Law. Regulations
on proprietary rights are applied to the right of full economic activity
if not specified otherwise by legislative acts or agreement concluded between
the enterprise and the owner.
The owner or persons authorised by the owner to exercise control over
his property make decisions concerning establishment of the enterprise
and determination of the aims of its activity, its reorganisation and liquidation
in accordance with the Law and constituent documents of Enterprise, accomplish
control over efficiency of the use and safety of the property given to
The owner has the right to obtain profits from the use of the property
given by him to the enterprise, in the amounts determined by agreement
between the owner and enterprise. Any disputes that might arise when determining
this share of profits are to be settled in the Law Court or Arbitration
3. The property registered by the owner with the state or other organisations
being financed at the expense of the owner is under current control of
this enterprise, which, within the limits and according to procedure established
by the Law, following the aims of its activity, orders from the owner and
destination of the property, exercises right of possession, use and disposal
The owners of the property registered with organisation have the right
to withdraw said property or redistribute it among other legal entities
established by them at their own discretion if not specified otherwise
by legislation of Azerbaijan Republic and Nakhichevan Autonomous Republic.
4. Enterprises exercising economic activity by the owner' consent in
cases envisaged by legislation of Azerbaijan Republic and Nakhichevan Autonomous
Republic, shall acquire the right for independent disposal of profits obtained
as a result of said activity and property purchased at the expense of said
Clause 6. Cessation of proprietary right
Cessation of proprietary right against the owner' will is not permitted
except cases when penalty is being imposed as per the owner' obligations,
in cases and according to procedure envisaged by legislative acts of Azerbaijan
Republic and Nakhichevan Autonomous Republic.
In cases of natural calamities, accidents, epidemic, epizootic and
similar circumstances, on decision of state power bodies the property might
be withdrawn from the owner temporarily or forever, according to procedure
and on terms envisaged by legislative acts, with payment of property cost
(requisition) or lost profits.
In cases envisaged by legislative acts the property might be taken
from the owner on decision of Law Court, Court of Arbitration or other
authorised state body (official) as a sanction for crime or other violation
of law (confiscation).
Clause 7. Imposition of penalty on the owner' property
1. Concerning obligations of legal entity penalty might be imposed
on any property belonging to this entity or being operated by him on terms
of full economic activity.
State or other company is responsible for its obligations using all
money being at its disposal. Whenever there is not enough money at disposal
of state or other company the owner of respective property will bear responsibility
for obligations of this company.
2. The owner or constitutor of legal entity is not responsible for
obligations of the owner or constitutor except cases envisaged by the present
Law, other legislative acts of Azerbaijan Republic and Nakhichevan Autonomous
Republic, or by constitutors of legal entity.
3. Obligations of the citizens are secured by property belonging to
List of the property of citizens that cannot be used as security for
fulfilment of claims of creditors is given in the Civil Code of Azerbaijan
4. Withdrawal of debts as per obligations of the owners to the state,
including debts due to the budget is allowed in cases envisaged by legislative
acts of Azerbaijan Republic and Nakhichevan Autonomous Republic. Whenever
the owner is dissatisfied with decision about such fine, he will have the
right to apply to Law Court or Court of Arbitration.
Clause 8. Property outside the territory of Azerbaijan Republic
Terms and procedure of possession, use and disposal of state, co-operative
property, property of public and religious organisations and also citizens
of Azerbaijan Republic residing in other states are determined by laws
of the states wherein the property is located and also by concluded agreements
and regulations of international legislation.
Section II. Right of state property
Clause 9. General provisions concerning state property
1. State property of Azerbaijan Republic belongs to the people of Azerbaijan.
State property of Azerbaijan Republic is an integral part of state property
of Azerbaijan Republic.
2. On decision of Supreme Council of Azerbaijan Republic part of state
property thereof might be given to local power bodies (municipal property).
3. Respective Councils of Peoples' Deputies and state bodies authorised
by them dispose of and control state property, without violation of interests
of Azerbaijan Republic.
4. Provisions of the present Law are applicable to joint and state
property of other states being at the territory of Azerbaijan Republic.
Clause 10. Objects of the right of state property
1. Land, its entrails, inner and territorial waters, continental shelf,
flora and fauna, air basin within the borders of Republic are exclusive
property of Azerbaijan Republic. Land might be granted by Azerbaijan Republic
to its citizens as a property.
2. Azerbaijan Republic has the right to possess, use and dispose of
resources of Caspian Sea economic zone adjoining its territory within the
limits recognised by international legislation.
3. Azerbaijan Republic has the right for its share in the property
that has been formed in the USSR, including diamond and hard currency funds
and gold reserves.
4. Enterprises of all branches of economy, power networks (systems),
transport and communication systems, state housing fund, property of state
companies, cultural values and historical memorials, objects of infrastructure
including recreation-tourist ones, other property necessary for fulfilment
of objectives facing Azerbaijan Republic as sovereign state constitute
state property of Azerbaijan Republic.
5. Enterprises or their parts located at the territory of other countries
and established at the expense of state financial resources of Azerbaijan
Republic are also state property of Azerbaijan Republic.
Clause 11. Municipal property
1. Property of local state power bodies and local self-control bodies,
finances (resources) of local budget and extra-budgetary fund, housing
fund, non-living premises in the buildings of housing fund, objects of
engineering infrastructure (structures and networks of water, sewage pipelines,
heat supply, electric power supply, electric city transport, objects of
city improvement) and other objects that render services directly to customers
and are located at the territory of Councils of People's Deputies might
constitute municipal property.
2. Agricultural enterprises, enterprises of trade, everyday services,
transport, industrial, construction and other enterprises, property complexes,
educational institutions, objects of culture, public health and other property
necessary for economic and social development of administrative territorial
formations might constitute municipal property.
3. Legal terms for the property belonging to local state power bodies
are established in accordance with legislation of Azerbaijan Republic.
4. Transfer, withdrawal and redistribution of objects constituting
the property of local state power bodies without agreement therewith, except
cases envisaged by legislation of Azerbaijan Republic, are prohibited.
Clause 12. Property of state and municipal enterprises and organisations
1. State or municipal property, registered with state or municipal
enterprise belongs to the enterprise as economic unit.
2. Whenever the body authorised to exercise control over state or municipal
property makes decision about reorganisation or liquidation of state or
municipal enterprise, except cases when it has been recognised insolvent
(bankrupt) working collective has the right to demand for lease of the
enterprise or reorganisation thereof into other enterprise based on the
right for collective or private property.
3. State or municipal property that has been registered by the owner
with the enterprise being on state or municipal budget is subject to control
of said enterprise.
Clause 13. Alienation and privatisation of state and municipal
Enterprises, property complexes, buildings, structures and other property
being state or municipal property might be alienated and become the property
of citizens and legal entities according to procedure and on terms established
by legislative acts of Azerbaijan Republic and Nakhichevan Autonomous Republic
and acts of local Councils of People's Deputies issued within the limits
of their competence.
Section III. Right of collective property
Clause 14. General provisions concerning the right of collective
1. Right of collective property is totality of rights of collective
(group of persons) being under protection of Law and concerning simultaneous
possession, use and disposal of the property.
The property might belong on terms of collective possession, with estimate
of the share of each owner (shared property) or without such estimate (joint,
or collective property).
2. Property of collective enterprises and enterprises taken on lease,
co-operatives, stock companies, economic associations, trade unions and
other public and religious organisations, associations of public movements
of citizens being legal entities.
3. Collective property is formed at the expense of handing over state
property to the collective according to legal procedure, establishment
or purchase of the property at the expense of own or borrowed money of
4. Possession, use and disposal of the property belonging to the collective
is realised on agreement of all owners; if such agreement could not be
achieved, then claim of any owner should be solved in the Law Court or
Court of Arbitration.
5. Whenever share in the collective property is being sold to the third
party all other participants of collective property have priority right
for purchase of said share according to procedure and on terms established
by legislation of Azerbaijan Republic and Nakhichevan Autonomous Republic.
Clause 15. Property of the enterprise
Economic companies and associations, co-operatives, collective and
other enterprises established as owners of the property and being legal
entities have the right on property given to them as contributions and
in other form by their participants and also on property obtained as a
result of their business activity and acquired legally in some other way.
Stock companies also own money obtained as a result of sale of the bonds.
Clause 16. Property of business association
1. Association of economic companies, collective enterprises and enterprises
taken on lease, co-operatives and other legal entities (concerns, associations,
unions, interbranch regional and other companies) being legal entity has
the right on property given to it voluntarily by its participants and also
obtained as a result of business activity thereof.
2. Business association has no right for other property of participants
of the Association.
3. Property remained after termination of activity of Association will
be distributed between constituent enterprises and organisations.
Clause 17. Property of public organisations
1. Public organisations being legal entities might possess buildings,
structures, housing fund, equipment, accessories, property of cultural-educational
character, money, bonds, securities and other property necessary for accomplishment
of business activity according to Statutes of these organisations. Public
organisations might carry out business activity, produce and acquire enterprises
and other property for accomplishment of this activity within the limits
of objectives specified in their Statutes.
2. Enterprises and organisations established or acquired by public
organisations that are legal entities have full right for accomplishment
of economic activity or current control over property registered therewith.
3. After settlements with budget and banks and also other creditors'
property remained after liquidation of public organisation shall be used
for accomplishment of objectives envisaged in its Statute.
Clause 18. Property of charitable and other public funds
1. Charitable and other public funds being legal entities have the
right for property that has been given to them by constitutors for accomplishment
of activity envisaged by their statutes. Charitable and other public funds
have the right for property acquired or formed by them at the expense of
their own money, including profits from their own economic activity and
also for property given to them by citizens, legal entities or government,
purchased on some other terms not contradicting the Law. They publish reports
about use of property belonging to them.
2. Whenever charitable or other public funds acquire or purchase enterprises
and organisations being legal entities, and also in case of liquidation
of other charitable fund provisions envisaged respectively in paragraphs
2 and 3 of Clause 17 of the present Law will be applied.
Clause 19. Property of religious organisations
1. Religious organisations being legal entities might own buildings,
cult (religious) articles, objects of industrial, social and charitable
destination, money or other property necessary for their activity.
Religious organisations have the right for property acquired or formed
by them at the expense of their own money, donated by citizens, organisations
or given for possession, use and disposal by the state or acquired on some
other terms, not prohibited by the Law.
2. Enterprises and companies established by religious organisations
as legal entities have the right to exercise economic activity and current
control over the property registered with them.
3. In case of liquidation of religious organisation its property, after
settlements with the budget, banks and other creditors, shall be used according
to provisions of its Statute.
Section IV. Right on private property
Clause 20. General provisions concerning the right of private property
1. Right of private property is totality of rights of individuals being
under protection of Law and concerning possession, use and disposal of
productive facilities, non-productive articles and values, money and securities
and results of their use. When realising right of private property hired
labour might be used, according to procedure and within the limits envisaged
2. The citizen has exclusive right to use his abilities for productive
and creative activity.
3. Property of the citizen is formed and increases at the expense of
his profits obtained as a result of participation in productive process,
other use of his abilities, business activity, inherited property and other
ways not contradicting the Law.
4. Rights of the citizens for inheritance are recognised and protected
Clause 21. Objects of proprietary right of the citizen
1. The citizens might possess:
· land sites;
· houses, apartments, country houses, garages, domestic utensils
and articles for private use;
· shares, bonds and other securities;
· facilities of mass media;
· enterprises, property complexes in productive sphere, of consumer,
social, cultural destination except some kinds of property envisaged in
legislative acts, which cannot belong to the citizens from the point of
view of state or public security, or due to international obligations.
2. Amount and cost of the property purchased by the citizen according
to Law or agreement are not limited.
3. Member of housing, house-building co-operatives, co-operatives on
construction of country-houses, garages who paid total amount for apartment,
country house, garage, other building or structure given to them for use
acquires the right for this property.
Citizen who has acquired as his property said structures and premises
according to agreement concluded with the owner of this property or inherited
it becomes a member of respective co-operative having submitted application.
4. Leaseholder of living premises in the state, public and housing
fund of local Councils of People's Deputies and members of his family have
the right to acquire respective apartment, house as their property having
bought them back, or in some other way, according to legislation of Azerbaijan
Republic and Nakhichevan Autonomous Republic.
5. The citizen having as his property apartment, living house, country
house, garage, other premises and structures has the right to dispose of
this property at his own will: to sell, leave it to anybody in his will,
to give it as a present, to let on lease, accomplish other acts not contradicting
6. The citizen might exercise business activity using his property
as contribution to economic companies and associations, co-operatives,
collective and other enterprises, other unions of citizens and legal entities.
7. The citizen might use the property belonging to him for economic
activity without establishment of legal entity.
8. Whenever the property of the citizen is registered with the enterprise
established by him he will acquire the rights envisaged by paragraph 2
of Clause 5 of the present Law.
9. For establishment of the agricultural company (farm), gardening,
market-gardening and other forms of agricultural activity and also construction
of living house, garage, other auxiliary facilities the citizens have the
right to purchase land sites according to legislation of Azerbaijan Republic.
For the same purposes land sites might be given to citizens for life,
with right for inheritance. Products produced at these sites and obtained
profits are the property of the citizen and might be used by him at his
Section V. Protection of the proprietary right
Clause 22. General provisions concerning protection of proprietary
1. The owner has the right to demand his property from the strange
If the property has been acquired for money from the person who had
no right to estrange (alienate) it, provided that the buyer didn't know
and could not know about that (conscientious buyer) then the owner has
the right to demand this property from the buyer in case if the property
was lost by the owner or the person who obtained it for possession, or
was stolen, or ceased to be the property in some other way against their
will. Money and also bearer securities could not be demanded from conscientious
2. The owner might demand liquidation of any violations of his right
even if such violations were not related to termination of ownership.
3. Damages borne by the owner as a result of crime will be compensated
by the state bodies, on decision of the Law Court. Expenses borne by the
state will be withdrawn from the guilty party according to legislation
of Azerbaijan Republic.
4. Protection of the proprietary right shall be accomplished by Law
Court or Court of Arbitration.
5. Rights as per the present Clause belong also to the person, not
being the owner, however possessing the property on terms of full economic
activity, current control, inherited for life or on some other terms envisaged
by the Law or Agreement. This person has also the right for protection
of his property against the owner.
Clause 23. Protection of the interests of the owner on termination
of his rights in cases envisaged by the Law
In cases when Azerbaijan Republic or Nakhichevan Autonomous Republic
accepts legislative acts terminating proprietary rights losses borne by
the owner as a result of such acts will be compensated in full amount by
Azerbaijan Republic or Nakhichevan Autonomous Republic.
Whenever any disputes or disagreements arise they should be settled
in the Law Court.
Clause 24. Invalidity of acts violating rights of the owners
1. If, as a result of issue of the act contradicting the Law by the
state control bodies or local body of state power the rights of the owner
and other persons possessing, using and disposing of the property are violated,
such act might be recognised as invalid on the claim of the owner or the
person whose proprietary right has been violated.
2. Losses borne by citizens, organisations and other persons as a result
of issue of said acts and also lost profits are to be compensated in full
amount at the expense of money being at disposal of respective power or
3. Termination of proprietary right in connection with decision of
state body directed to withdrawal of the property from the owner, including
decision about withdrawal of land site whereon the building, other structures
and plants belonging to the owner are located is permitted only in cases
and according to procedure established by legislative acts of Azerbaijan
Republic and Nakhichevan Autonomous Republic, provided that the owner is
given property of equal value and compensated losses borne by him as a
result of termination of proprietary right.
If the owner disagrees with decision leading to termination of
proprietary right this decision could not be realised before the dispute
is settled in the Law Court or Court of Arbitration. In the course of settlement
of dispute all questions of compensation of losses borne by the owner shall
be also settled.
President of Azerbaijan Republic
Baku, November 9, 1991