What are the specific features of registering real estate rights in Turkmenistan?

1) What are the specific legal features of real estate rights registration in your jurisdiction?

The key features of the state registration of rights to real estate in this jurisdiction, in accordance with the Law of Turkmenistan “On State Registration of Rights to Real Estate and Related Transactions” (hereinafter referred to as 'the Law'), are as follows:

• registration is carried out within the framework of a procedural review. Authorized bodies verify the legality of the submitted documents and the absence of contradictions;
• registry documents have a high level of protection. They are subject to permanent storage and cannot be seized or destroyed, while information is recorded on both paper and electronic media;
• interaction with other state information systems is ensured. State Registry information must be comparable and compatible with data from cadastre and other resources, and authorized bodies are obliged to submit information for entry into the registry.

2) When does ownership legally arise: upon signing the contract or upon registration?

Ownership rights to real estate do not arise solely by virtue of signing a contract. The contract establishes the legal basis, but the right itself arises only after its entry into the State Registry. According to Article 6 of the Law of Turkmenistan, ownership rights to real estate subject to state registration arise, transfer, and terminate from the moment of the state registration of their occurrence, transfer, or termination, respectively.

3) Is registration mandatory for the validity of real estate transactions?

According to Article 210 of the Civil Code of Turkmenistan, the acquisition of immovable property requires a notarized document and the registration of the acquirer in the State Registry of Rights to Real Estate. An application for registration may be filed by either the transferor or the acquirer. The necessity of state registration is further confirmed by Article 6 of the Law, as ownership rights to real estate do not arise without registration. Thus, with respect to rights subject to the registration regime, registration is a mandatory requirement for the validity of the transaction. 

4) What types of real estate rights must be registered (ownership, lease, easements, mortgages, etc.)?

In accordance with Part 2 of Article 6 of the Law, the following rights and encumbrances on real estate are subject to state registration:

1. ownership rights;
2. the right of economic jurisdiction;
3. the right of operational management;
4. the right of inheritable possession of a land plot;
5. the right of trust management;
6. the right of lease (tenancy) of a land plot or building, structure, or isolated premises for a term exceeding five years;
7. the right of use of a land plot;
8. rights arising from a mortgage;
9. easements (servitudes);
10. rights and encumbrances established in respect of real estate during the denationalization and privatization of state property;
11. rights arising from judicial decisions;
12. other rights and encumbrances in cases provided for by the regulatory legal acts of Turkmenistan.

Additionally, it should be noted that the Law requires registration not only of the initial right but also of its transfer, modification, or termination.

5) What restrictions apply to foreign nationals when purchasing real estate?

The fundamental principle is Article 11 of the Constitution of Turkmenistan, according to which foreign citizens and stateless persons enjoy rights and freedoms, as well as fulfill duties, on an equal basis with citizens of Turkmenistan, in accordance with the laws and international treaties of the country.

In furtherance of this constitutional principle, Article 5 of the Law defines the subjects of state registration of rights to immovable property and related transactions as physical and legal persons (who are owners or holders of rights to objects in Turkmenistan), as well as the state registrar.

Thus, the Law does not contain specific legal regulations or separate restrictions regarding foreign citizens during the procedure for registering rights to real estate. The legislation treats applicants as right holders or acquirers, without establishing a separate category of registration based on citizenship.

6) How is priority of rights determined in the registration system?

The priority in the state registration system is determined in several ways established by the Law.

1.   Priority between applications is established based on the time of their submission. In accordance with Article 24, the document log is maintained on the principle of sequential entries, and priority between applications is determined by the date, hour, and minute the application for state registration was filed; i.e., an earlier filed application takes precedence over a subsequent one.

2.  Priority is determined between documents and sources of information within the registry itself. According to Article 29, in case of a discrepancy in data, priority is given to:

• paper-based data over electronic data (Part 2);
• data in the registration book over other documents of the State Registry (Part 3).

7) Is there a unified land or real estate register, and is it publicly accessible?

Turkmenistan has a unified State Register of immovable property (including land plots and buildings), the maintenance of which is also provided for by Law. In accordance with Article 22 of the Law, the principles for maintaining the State Registry of Rights to Real Estate and Related Transactions are established, including the principle of public disclosure. Public disclosure implies that the registry records are open. However, Article 30 of the Law indicates that this publicity is subject to limitations:

1. information constituting a state or commercial secret is not subject to disclosure;
2. information regarding a specific real estate object (rights and encumbrances) is accessible to any person. However, if information regarding the rights of a specific individual is requested (e.g., a list of their property), such data may only be provided to a limited circle of subjects, namely: the right holder themselves, their representative, successors, courts, or state authorities;
3. information is provided for a fee, unless otherwise established by law;
4. a record of the information issued is maintained, meaning it is recorded who received what information, and the right holder is entitled to know who was provided with data regarding their real estate.

8) What are the common grounds for refusal or suspension of registration?

In accordance with the Law, the state registration authority is entitled to suspend the registration process or refuse registration based on specific legal grounds.

1. Registration may be temporarily suspended by the state registrar in the following cases (Article 37):

• if additional information or documents are required;
• if it is necessary to conduct a technical inventory or a verification of the characteristics of the real estate;
• if an expert examination of the authenticity of the submitted documents is required;
• if an interested party submits a written application of their intent to challenge the corresponding right or transaction in court.

In the latter case, the registrar is obliged to record the suspension and notify the applicant within three working days, specifying the reasons, the duration, and the procedure for appeal.

2. The registrar is obliged to refuse registration in the following cases (Article 38):

• the claimed right is not subject to state registration in accordance with the law;
• the application is filed by an unauthorized or unqualified person;
• the necessary documents are missing, or the submitted documents do not comply with the requirements established by law regarding form or content;
• the person who issued the title document did not possess the authority to dispose of the property;
• there are discrepancies between the results of the property inspection and the submitted documents;
• the registration would violate the legal rights of third parties;
• there is an active record of an attachment (seizure) placed on the property;
• there are conflicting applications from different applicants that cannot be registered simultaneously.

The registrar is obliged to notify the applicant of the refusal within three working days, specifying the reasons and the procedure for appeal.

Thus, suspension is applied in cases where the issues are rectifiable or require clarification, while refusal is applied in cases where there are substantial legal obstacles to registration.

Authors: Ikbal Said Alauddin (Managing Partner), Lachin Amandurdyyeva (Senior Associate), Gulenar Akmyradova (Associate), Selbi Jorayeva (Paralegal), Emir Artykov (Paralegal)