Azerbaijan’s real estate market is expanding at record speed, driven by surging demand for housing and investment properties.
Yet behind the glossy façades and new developments lies a striking contradiction: the country’s thousands of real estate agents operate without any legal framework.
Despite their critical role in facilitating property sales, rentals, and investments, realtors (maklers) remain outside formal state regulation. Their profession is not officially recognized, and no dedicated law defines their status, obligations, or professional standards.
“The absence of legal oversight creates serious risks for everyone – clients, agents, and property owners alike,” said real estate expert Vugar Orudj.
“Without a proper legal foundation, no party can be certain their rights will be protected. Formal regulation would benefit not only citizens and tax authorities but also the agents themselves.”
The lack of regulation has led to systemic problems: agents often receive no guaranteed compensation, clients cannot legally defend their claims, and property owners face complications in verifying transactions or registering ownership. In many cases, documents are issued without stamps or legal signatures, leaving them with no binding force in court.
Orudj believes that comprehensive regulation should include the creation of professional associations, a Realtors’ Chamber, a code of ethics, and a national certification system – along with laws clearly outlining the rights and responsibilities of all market participants.
“State regulation should not restrict competition,” he noted. “On the contrary, it should create a fairer, more transparent, and competitive environment under clear legal boundaries.”
Meanwhile, lawyer Samir Gasimov points out that although Azerbaijan lacks a specific law on real estate brokerage, certain legal tools already exist within the Civil Code – such as commission contracts, agency agreements, and mandate contracts.
“Under these provisions, a broker assists one party in a real estate deal in exchange for payment,” Gasimov explained.
“However, the law is clear: a broker may collect a fee from only one side – either the buyer or the seller, not both.”
He emphasized that while written contracts can serve as legal evidence in court, most real estate transactions still rely on verbal agreements, leaving both clients and agents exposed to potential fraud or disputes.
Until a formal legal framework emerges, Azerbaijan’s booming real estate market will continue to rest on fragile trust – where even the most successful deals risk being undone by a missing stamp or a handshake too many.
