A draft bill amending the Real Estate Management Act and certain other acts has been published on the website of the Government Legislation Centre.

The project has been published on the website of the Government Legislation Centre Act amending the Act on real estate management and certain other acts.

Below is a brief description of the solutions included in the project:

• change in the principle of determining the price of land sold to the perpetual usufructuary:
  • the price of the real estate acquired by the perpetual usufructuary under a civil law agreement will be determined as at least twenty times the current annual fee for perpetual usufruct;
  • to ensure the current value of the land on which its price will be based, the possibility of preparing a valuation is provided;
  • depending on the applicable percentage rate of the annual fee for perpetual usufruct, determined in accordance with the purpose indicated in the agreement (0.3%, 1%, 2%, 3% or higher), the user will pay for the ownership of the land the equivalent of 6%, 20%, 40%, 60% or more of the market value of the land, but not more than that value;
  • price of land owned by the State Treasury will be determined by law and will amount to 20 times the current annual fee for perpetual usufruct – in the case of a one-off payment;
  • perpetual users of State Treasury land who choose payment installment payment while the equivalent 25 annual fees;
  • local governments will be able to adopt the same principle or negotiate the price with the buyer – the price of the land sold by the local government unit will also not be able to exceed the market value of the land;
  • in order to ensure the compliance of this principle with the rules for granting public aid, the entrepreneur’s benefit covering the difference between the market value of the land and the established price will be able to be settled within the de minimis aid limit;
  • the current perpetual usufructuary will have the opportunity to assess the validity of the claim for concluding the agreement in the circumstances of the given case, making the decision to submit an application for purchase dependent on the current financial possibilities or investment intentions;
• granting to perpetual users land owned by local government units or the State Treasury claims for acquisition of land ownership rights:
  • The following lands will be excluded from the claim:
    • undeveloped;
    • used for maintaining allotment gardens;
    • remaining in perpetual usufruct of sea ports and harbors;
    • transferred for perpetual usufruct within 10 years preceding the filing of the claim;
    • in respect of which the perpetual usufructuary has not fulfilled the obligations specified in the perpetual usufruct agreement;
    • in relation to which proceedings are pending for the termination of the perpetual usufruct agreement.

The act would enter into force 30 days after its announcement.

The bill has not been submitted for public consultation. Inter-ministerial consultations on the bill will continue until December 12, 2022.

The content of the project is available here.