New Judicial Practice Established by the Supreme Court of Azerbaijan

On April 18, 2024, the Supreme Court of the Republic of Azerbaijan issued a landmark decision (No. 2(102)-841/2024), establishing a new judicial practice in the realm of property rights and real estate registration.

In this pivotal case, the Real Estate State Registry Service had registered the same plot of land under two distinct registry numbers. The initial registrant, whose property rights were first recorded, sought judicial intervention to annul the subsequent registration of the same property. The court ruled in favor of the initial registrant, canceling the record of the later registrant’s rights.

However, complexities arose as the defendant, during the proceedings, sold the disputed land to a second defendant, who then transferred it to a third defendant.

The Supreme Court’s decision emphasized the legislative framework protecting the rights of bona fide owners. It clarified that an individual whose property rights are registered under a secondary registry number cannot be considered a bona fide owner when the same land is listed under multiple registry numbers. Consequently, the appellate court remanded the case with instructions for the lower court to amend the basis of its resolution and issue a decision grounded in this new judicial practice.

This decision not only resolves the specific dispute at hand but also sets a significant precedent for similar cases, reinforcing the protection of initial property registrants and the integrity of the real estate registration system in Azerbaijan.