THE ESSENCE, FORMS, AND NECESSITY OF FINANCIAL CONTROL REFORMS IN THE REAL ESTATE MARKET OF THE REPUBLIC OF ARMENIA
https://doi.org/10.59982/18294359-25.2-fv-06
Abstract
The Constitution of the Republic of Armenia enshrines a number of legal norms for the
protection of human rights, which play a fundamental role in the formation and improvement of the
financial oversight system. Along with the country’s socio-economic development, it is
also necessary to reconsider and strengthen the role of financial control over state activities,
since a stable and well-functioning system of financial oversight enables the state to
avoid facing a range of problems.
For the first time, this article examines the legal nature of financial oversight in Armenia’s real
estate market, the scope of institutional capabilities, and prospects for
development— highlighting how the experiences of the Russian Federation and the United States have
significantly contributed to improving the forms and methods of efficiency. The study analyzes the
current buyer– seller legal relations in Armenia’s real estate market, identifies existing
legislative gaps, and reveals inefficiencies in current oversight mechanisms, suggesting possible
improvements.
The research shows that financial control remains fragmented among numerous institutions and
encompasses not only tax and budgetary oversight but also various other instruments, lacking
unified legal regulations. The author proposes introducing several new financial
oversight mechanisms in Armenia’s real estate market, such as escrow accounts and
special licensing for developers. It is also recommended to adopt a comprehensive law
on the “Introduction of an Integrated System of Financial Regulation and Supervision,”
to create an integrated electronic monitoring system for real estate transactions, and to
strengthen independent auditing institutions.
These reforms are expected to ensure legal regulation and predictability in Armenia’s real estate
market, enhance financial transparency and public accountability, and help eliminate shadow
transactions.
Keywords: Financial control, financial control mechanisms, escrow account, audit, real estate
market of Armenia, legislative reforms.
PAGES : 53-61