On 28 December 2018 amendments were made to the Law of Azerbaijan Republic
"about Mortgage" (hereinafter: The Law). Amendments are mainly related to the
addressing of collection regarding mortgage on the basis of the notary's executive
record, sale of the item which is subject to mortgage, court disputes related to
mortgages, auction rules, as well as the fees for these procedures.
According to the amendments to the law, in case of termination of the mortgage the fee
for the cancellation of the encumbrance on the property will be paid by the mortgagor.
The next amendment is related to the court disputes on mortgage. Thus, any dispute
arising from the mortgage agreement shall be heard and final decision made within one
month.

At the same time, according to the amendments, if the sale of the mortgage object
allows the mortgagor to fulfill his / her obligation (debt), the consent of the mortgagee is
not required. In this case, the notary will approve the contract for the disposal of the
mortgage object, and will ensure the transfer of the amount which is the basis of the
mortgage to the bank account of the mortgagee.
Rules for auction and the addressing of collection regarding mortgage have also been
amended. According to the amendments, if no complaint is filed to the court within 21
days after getting the receipt about addressing collection to the mortgage object the
address of collection regarding mortgage will be based on the notary's executive record.
Sale of the mortgage item can be realised in the open market, at auction, as well as by
an online auction. According to the amendments, the terms of the auction have been
decreased.
It should be noted that the amendments to the law are aimed at simplifying the
mortgage relations and optimizing the procedures.
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