Investment law overview by

Registration of real estate transactions: what has changed.

Registration of real estate transactions: what has changed.

The Law of the Republic of Uzbekistan passed on October 11, 2018 and published on October 12, introduced amendments to the Civil and Tax Codes, which raised the issue of the procedure for drawing up and the forms of agreements for the sale and lease of real estate.

In particular, a significant change is that if in the past only the conclusion of a contract for the sale of residential premises required mandatory notarization, then now the sale of any real estate, that is, including non-residential ones, shall be formalized by way of drawing up and signing of a single document by the parties and its compulsory notarization

         Obligatory notarization is issued by drawing up and signing by the parties of a single document and its compulsory notarization. It should be noted here that this requirement shall be applied regardless of whether this transaction is made between individuals or legal entities or between an individual and a legal entity.
         As for the changes adopted in the Law in relation to registration of lease agreements, the requirements for the registration of lease agreements for buildings and structures, as well as the rental of residential premises concluded between citizens was simplified: now they shall not be notarized, but are only subject to registration with the tax authorities. This procedure was introduced not only for individuals, but also for legal entities.
        The requirement of notarization of the contract between citizens for the provision of residential premises for free use is also canceled without the condition of its obligatory registration with the tax authorities.
       It should be noted here that the procedure for mandatory registration of lease agreements is in no way connected with the requirement of mandatory state registration of lease agreements for buildings and structures concluded for a period of 1 and more years (Article 574 of the Civil Code of the Republic of Uzbekistan). These are not mutually excluding procedures, and with the presence of relevant grounds (time limit) both will have to be complied with.

              All these changes shall come into effect as of January 1, 2019.

      The Resolution of the State Tax committee approved the Regulation “On the procedure for mandatory registration of real estate lease agreements with the Tax authorities” (registration No. 3077 of the Ministry of Justice dated October 11, 2018).
          The established procedure assumes that no later than 10 days following the date of conclusion of the lease agreement, the lessor shall be obliged to register it. Fee shall not be charged for registration.

Share with your friends