ArmInfo. Reverse mortgage institution will be introduced in Armenia. The RA government approved amendments to the Civil Code and a package of related laws at its April 2 meeting.
As Suren Tovmasyan, head of the Cadastre Committee, noted in his speech, alongside the reverse mortgage institution, it is also planned to establish a system of exclusive spousal rights. A significant portion of citizens who have reached retirement age and own real estate continue to live on limited current incomes amid rising living expenses, utilities, and everyday living costs. The package provides for the right for pensioners aged 63 and older to negotiate with commercial banks under the terms stipulated by law regarding their participation in the reverse mortgage program.
Seniors will be able to mortgage their homes, receiving regular payments without having to repay the loan for the rest of their lives, while retaining ownership. The bank pays the owner a regular income, and upon their death, the property is transferred to the bank. Thus, the pensioner will be able to receive installments of the value of their home while continuing to live in it. The authors of the bill claim that ownership of the property will be retained for the entire term of the contract.
It should be noted, however, that the implementation of this new mechanism could create serious problems for the pensioners' heirs. However, when selling the home, the bank undertakes to pay the heirs the remaining amount after covering all its expenses.
Another innovation concerns the right of spouses to own property. It stipulates that property acquired jointly during the marriage is automatically registered as the property of the other spouse upon the death of one spouse, eliminating the need to divide the property among the remaining heirs. Heirs will be able to enter into inheritance rights only after the death of the other parent.
