Deferral of cadaster value difference when changing the type of the land. reform

The reform proposes to establish that when the difference in cadastral values ​​exceeds twenty million drams (and ten million drams in the border, mountain and highland communities included in the list defined by the government) when changing the purpose of the plot, the owner of the plot can pay the amount exceeding twenty and ten million drams, respectively, up to within five years. The periodic determination of the difference in cadastral values ​​and the payment schedule will be approved by the decision of the community council. In addition, in order to ensure the fulfillment of the obligation to pay the cadastral value of the intended plot in installments, the owner of the plot must sign a mortgage contract with the relevant community for the purpose of changing the plot or submit a guarantee for a period not less than the installment payment period and not less than the amount to be paid in installments, issued in the Republic of Armenia. Moreover, the owner of the plot is also obliged to pay the community interest in the amount of two percent of the deferred amount for each installment year - in the first quarter of each year - for the previous year. In case of non-payment, the municipality will have the opportunity to confiscate the mortgaged plot from the owner. Alternatively, a guarantee of an amount not less than the installment payment period and the amount payable in installments may be presented in the Republic of Armenia. by a licensed bank. Moreover, the guarantee must be presented to the council of elders before the decision of the council of elders on installments is made creates additional guarantees for the community in connection with the execution of payments, on the other hand, it makes it risky for the investor to not make payments according to the established schedule.