New-Build Apartment Sold to Multiple Buyers in Baku

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In Azerbaijan, cases are still emerging in which a single apartment in a newly constructed building is sold to more than one buyer, leaving homeowners locked in lengthy legal disputes and, in some cases, without access to the property they paid for.

One such case involves a Baku resident who says he legally purchased a two-room apartment measuring 90 square meters in a high-rise building, paying 85,000 manats in full under a sales agreement. According to the buyer, the transaction was documented and completed several years ago.

However, upon returning to the apartment after a prolonged absence, he discovered that another person was already living there and claiming legal ownership.

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The second occupant reportedly cited a court decision but did not present documentation to the original buyer. The dispute has since moved to court, where proceedings are currently ongoing.

Why does this happen?

Legal experts say such cases are most common in the primary housing market, particularly in buildings constructed by housing cooperatives or private developers. In some instances, apartments are sold before they are officially registered in the state property registry.

Without early registration, unscrupulous developers may be able to issue multiple contracts for the same unit, using internal company documents, stamps, and informal agreements rather than state-verified records.

“This creates a legal gray zone,” lawyers explain. “If buyers rely solely on the seller’s assurances and do not verify registration status, the risk of double or even triple sales increases.”

What do courts look at?

In property disputes, Azerbaijani courts primarily examine:

  • the chronology of contracts,

  • the legality of payments,

  • and the presence of official state documentation, such as notarized contracts and registry extracts.

While earlier court practice often favored the buyer with the earliest contract, more recent cases also consider actual possession and use of the apartment, including whether renovations were made and who has been living in the property.

If ownership cannot be established, buyers may still pursue financial compensation through the courts.

What has changed – and what hasn’t?

Members of parliament note that such incidents have become less frequent in recent years due to stricter rules. Today, contracts for newly built apartments are generally notarized, often using electronic signatures, and developers are required to formalize documentation before sales.

However, problems persist when buyers and sellers bypass formal procedures in favor of informal arrangements or outdated practices based on personal trust.

What buyers are advised to do

Experts strongly recommend that buyers:

  • verify all permits issued to the developer,

  • confirm the building’s registration status with state authorities,

  • insist on notarized contracts,

  • make payments via bank transfers, and

  • obtain an official extract from the state property registry whenever possible.

The State Service for Property Issues says a nationwide electronic property registry and cadastral information system is currently under development and undergoing inter-agency approval. Officials say the system is expected to reduce disputes by improving transparency in the real estate market.

For now, legal specialists warn that caution remains essential: in Azerbaijan’s rapidly growing housing sector, paperwork – not promises – determines ownership.

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