Owners of illegal houses in Azerbaijan to get compensation while using their lands for state needs

Business Materials 3 June 2010 18:04 (UTC +04:00)

Azerbaijan, Baku, June 3 / corr Trend U.Ismayilova /

In accordance with the law on purchase of land plots for state needs, compensation will also be paid to owners of illegal constructions, MP Nazim Mammadov, member of the permanent parliamentary committee on economic policy, said in an interview for the Property Market Participants public organization's magazine.

"Many problems in this field will be solved by applying this law, For instance, earlier, the ownership of an object was not explored while purchase of the land, or destroying any building on it," Mammadov said.

The law in detail indicates the land plots can be used under the infrastructure projects and construction of military facilities.

Mammadov said the new law will enable to remove problems related to payment of compensation to owners of illegal buildings, because in many cases, while demolishing the houses, owners get compensation very late. In some cases, compensation to the owners is issued in the period when the previously fixed amount is inadequate to the amount for the purchase of a new house. But today these issues are already regulated, MP said.

"If the land is purchased for state needs, its owner can not be evicted before receiving compensation," Mammadov said.

The law "Acquisition of land for public use" also found its decision on the issuance of compensation to owners of residential buildings in the security zones (gas lines, power lines, etc.).

The amount of compensation for owners of illegal buildings will be determined according to market prices, MP said.

The base price for compensation will be calculated as the average of three real estate transactions in the region with the highest value specified in the notarial registration.

If housing existed in the territory for 5-6 years, additional payment for housing on the expropriated land area can be equivalent to 5 percent of gross compensation, 6-7 years - 6 percent, 7-8 years - 7 percent, 8-9 years - 8 percent , 9-10 years - 9 percent, more than 10 years - 10 percent.

The entire term of making a decision about alienation and compensation is limited to 60 days, including 45 days after the decision on payment.

In case of disagreement with the assessed amount of compensation, a landowner may challenge the decision in court.

The law envisages paying compensation to individuals and legal entities, who are owner or renters of land property.

The legislation enables to purchase land for roads of state significance and communications (oil and gas pipelines, sewerage, electricity transmission lines, hydro-technical devices), border security lines, defense and state security facilities, facilities of state significance under the mining industry.