Draft laws on state registration and property rights

1. Update: - Draft revised law on the state registration
- Draft revised law on the registration of property rights (the Draft laws)
By: Battuya Jalbasuren, Co-chair, BCM Legal working group
Date: March 27, 2017
Dear BCM member,
The purpose of this legal update is to inform you on key changes observed in a) the Draft
revised law on the state registration and b) the Draft revised law on the registration of property
rights. It is also aimed to facilitate your review of the Draft laws and hear your concerns and
inputs. Finally, our intention is to raise your concerns and inputs with appropriate government
bodies, and stakeholders.
1) Draft revised law on the state registration
 By revising the Law on the state registration the government seeks to improve the
legal environment for the state registration in view of international standards.
 The government aims to keep a balance between transparency of information in the
state registration and personal secrecy, and ensure transparency of information on
legal entities and property rights.
 The government views that classification of information in the state registration is
required to have market participants informed, and ensure property market growth.
The government views that the information other than those prohibited and restricted
by law should be open.
 The draft revised law, in addition, seeks to improve electronic access to the
information in the state registration and the use of electronic personal information.
The key amendments observed are outlined below:
Clause
No
Amendments
9 Pledge (batlan dealt) and finance lease have been added to the list of property rights
to be registered.
16.12 Information and a response to an inquiry may be provided in an electronic form.
16.13 A shared database will be created at the National data center to enable an exchange
of information between the state registration of property rights and the cadastral
database.
18.3 Rules for the receipt and incorporation of information in the electronic database will
be issued by the Head of the state registration department.
19.2 Open information:
-name and address database
-name, address, registration number, form, operational activities, founders,
contributed capital, re-organization, and dissolution of a legal entity.

2. -name/surname of a person who represents a legal entity without a proxy.
19.3 Closed information:
-fingerprint
-immovable property registration protected as a government secrecy by a law
19.5 An officer of legal, and other government bodies specifically empowered by law
will submit a formal request to obtain:
-information on registration, address, phone number, and contributed capital of
founders, shareholders, and person/s representing a legal entity without a proxy.
-information on name, registration, type of property rights, registration, state,
registration number, and special notes relating to a property owner.
19.6 Summary information on the open and closed information may be obtained subject
to a permission by an Intelligence body and an agreement signed with the state
registration body.
2) Draft revised law on the registration of property rights
 The government aims to integrate the state registration of land rights and immovable
property rights.
 It seeks to utilize professionals employed in the immovable property sector in provision
of services such as “application submissions and giving responses to inquiries”.
 The government aims to ensure transparency of the state registration to the extent that
the Law on personal secrecy and the Law on organizational secrecy permit.
 More detailed provisions have been prescribed for the first time registration of property
rights, rights transfer, and changes made in the state registration.
 The government views that information transparency will transpire asset flows, decrease
property price surge, and promote property market growth.
The key amendments observed are outlined below:
Clause
No
Amendments
4.4 A residential house/apartment and a separately owned immovable property under
common ownership will be registered based on the number of a square land unit
underneath and in the vicinity of the house/apartment/immovable property.
7.10 An electronic application for registration of property rights will be approved by an
electronic signature.
10.1 The first registration of an ownership right and other related rights of an immovable
property will be based on the number of a square land unit and the right/s to the
immovable property will be made as ‘one component’ with the right/s to the square
land unit.
10.6.8 Registration of an immovable property ownership will require a copy of an agreement
under which a future right of ownership arises.
10.11 Ownership of an incompletely executed immovable property will be registered
under a common ownership or separately held ownership.
11.4 If an owner, possessor or user of immovable property rights changes by a

3. decision of court/arbitration, the state registration body will notify, in writing, to
person/s registered in the state registration and whose interests may be affected.
13.1 An amendment will be made in the state registration if a price, execution status,
designation of an immovable property, or the number of a square land unit changes.
14.1 A closure of the state registration will be made by the Head of the state
registration authority based a) on a decision of court or arbitration, b) if the state
registration overlaps, and c) if an owned immovable property is destroyed.
16.3 A sequence of a mortgage registration will be defined by a sequence of an
application registered in the state registration.
16.4 A mortgage registration will include information on the loan amount, and interest and
the number of a loan agreement. It will also include information on prohibiting an
overlapping right to the mortgage.
20.1 A security instrument (baritsaalbar) certifying the right of a security holder will be
registered in the state registration.
25.4
10
An ownership right to a building built on the basis of ‘a right to build the building’ will
not lead to a closure of the “right to build the building”.
29.1.1 Registration of an application will be rejected if a property right sought to be
registered falls under the right and restriction protected ‘by a special note’.
33.1.1
An information supplier will, having concluded an agreement with the registration
body, send applications and relevant documents (upon a request by an applicant) to
the state registration information database or will act as a broker to register
applications in the state registration.
37
A state registrar will be covered by a liability insurance to be able to compensate for
damage/loss incurred due to professional errors.