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ARM-1998-2-002 |
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a) Armenia / b) Constitutional court / c) / d) 27-02-1998 / e) DCC-92 / f) On the conformity of several provisions of the Law of the Republic of Armenia «On Real Estate» with the Constitution of the Republic of Armenia / g) Tegekagir (Official Gazette), 3/1998 / h) . |
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Expropriation, consent by owner / Real estate / Market value / Expropriation, compensation. |
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Headnotes: |
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Real estate can only be expropriated by way of a specific law which stipulates the social need for this expropriation, fixes the compensation based on market value and on written consent by the owner. This consent can be replaced only by a court decision. |
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Summary: |
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The case was initiated by the President of the Republic, who disputed several provisions of the Law on Real Estate regarding the expropriation of real estate in the interests of society and the State, in particular issues of preliminary determination of the value of equivalent compensation by the Government for the expropriated property and the resolution of the disputes connected with it in a judicial manner. The Constitutional Court confirmed the conformity with the Constitution of the provision which fixes the powers of the Government in the preliminary determination of the value of equivalent compensation in the case of expropriation of real estate. However, the Court found the following provisions of the said Article contravening the Constitution: |
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- Paragraph 3, according to which, «If the owner of real estate disagrees with the value of compensation of the real estate, then the Government of the Republic of Armenia may conduct expropriation in a judicial manner only». |
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- Paragraph 4, according to which, «The owner of the real estate shall abstain from inflicting damage to real estate, subject to expropriation for society or State needs, until a court ruling comes into legal force». |
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- Paragraph 5, according to which, «The procedure of expropriation of real estate for society or State needs is established by the Government of the Republic of Armenia, pursuant to the provisions of this Article». |
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The Court held that, pursuant to [ENG-ARM-A-8] Articles 8 and [ENG-ARM-A-28] 28 of the Constitution, real estate may only be expropriated through the adoption of a Law on the expropriation of particular real estate, in which the extreme importance and significance of the expropriation of real estate shall be substantiated. Such a law has to state which needs of the society and the State will be satisfied through the expropriation of real estate. The law has to oblige the Government to fix the value of compensation for real estate based on a financial-economic assessment, taking market prices into account. It has to be based on the results of negotiations between the owner of the real estate and the Government, and it has to be based upon written consent of the owner, which is subject to court dispute by the latter. Furthermore, the Constitutional Court emphasised that the Government may not establish a procedure for expropriation of real estate which would grant it the power of forced expropriation of real estate. |
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