YEREVAN, July 3. /ARКА/. At an extraordinary session on Friday, the National Assembly of Armenia adopted, in the second and final reading, amendments to the Civil Code of the Republic of Armenia, introducing the concept of reverse mortgages and a new type of property rights for spouses.
According to Nane Ghazaryan, Deputy Chair of the RA Cadastre Committee, the amendments propose introducing two new institutions: reverse mortgages as a new type of collateral and reverse mortgage loan agreements.
According to her, the reverse mortgage mechanism is primarily intended for pensioners who own real estate.
“This mechanism will allow pensioners who own real estate to transfer their real estate to a reverse mortgage and receive monthly payments from the bank, thereby improving their social status,” Ghazaryan said.
She noted that the amendments also provide for a new type of right: “the exclusive property right of a spouse.” According to the proposed amendments, property acquired during marriage may be registered as the exclusive property of one spouse.
According to Ghazaryan, this will ensure greater legal certainty in property relations and strengthen the social security of citizens.
“The introduction of reverse mortgages and exclusive property rights for spouses is an important step not only for the development of the real estate market but also for strengthening the state’s social function. This expands the opportunities for citizens to exercise their property rights and creates an additional financial instrument that allows them to turn the value of their property into a stable source of income,” she emphasized.
She also stated that the implementation of these instruments is scheduled for January 1, 2027.
A homeowner who uses a reverse mortgage retains ownership of the property and receives regular payments from the bank secured by the property.
A reverse mortgage is a financial instrument that allows property owners, typically pensioners, to receive regular income secured by their home without selling it. After the owner’s death, the property may be transferred to the bank or to the heirs if they pay off the accumulated debt.
