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Home/Market News & Opportunities/Market News & Opportunities/New construction-related legislation introduces a series of novelties to help investors speed up their building process

New construction-related legislation introduces a series of novelties to help investors speed up their building process

ACQUIRING CONSTRUCTION LAND

According to the New Law, private ownership over construction land and further transfer is now allowed. In practice, private ownership will be introduced in the course of 2010.

At the moment, construction land under state ownership may be leased from a municipality through either:

  • public bidding or
  • public tender.

The land is leased to the highest bidder but, in exceptional cases, it can be leased at a fee lower than the market value of land or free-of-charge with the prior consent of the Government.

Additionally, a plot of agricultural land may be converted into construction land with an approval of the competent bodies and payment of the land conversion fee.

OBTAINING LOCATION PERMIT

The Location Permit is required for drafting of technical documentation, including the development of the Main Project. The Permit is issued by the municipal authority within 15 days from the date of submission of the request. It is valid in a period of 2 years, within which an investor has to apply for the Construction Permit.

GETTING CONSTRUCTION PERMIT

Once the Location Permit is obtained and technical documentation (General Project, Conceptual Project, Main Project, Executive Project, and As Built Project) is elaborated by a licensed consultant, an investor can apply for the Construction Permit. The documents to be submitted include: 1) the Location Permit, 2) the Main Project, with the attached report on technical inspection, 3) evidence on ownership/lease title, 4) evidence on arrangement for payment of the land development fee, 5) evidence on the paid administrative fee.

The Permit is issued within 8 days from the date of submission of the application. It is also valid for 2 years, which is the deadline for the investor to start construction.

CONSTRUCTION

No later than 8 days before the construction starts, the investor provides the municipal body, which issues the Construction Permit, with a construction commencement date and completion target date. Prior to construction, the investor should as well set out the building site and publish mandatory data on a building site.

Throughout the construction stage, the investor also provides supervision of the construction works.

OBTAINING OCCUPANCY PERMIT

The Occupancy Permit is issued within 7 days from the date of receiving the findings of the Commission in charge of technical inspection, which have established that the erected object to be suitable for use.

Technical inspection of a structure is done upon the completion of construction, that is the completion of all the works specified in the Construction Permit and the Main Project. Inspection may also be carried out simultaneously with the construction process, if the verification of the actual condition of certain parts of the structure is not possible after its completion.

To ensure the suitability for the use of a structure or if envisaged by technical documentation, an assessment and verification of installations, devices, machinery, stability or safety of structure, devices, and equipment for environmental protection may take place. The Commission may propose to the competent authority to approve the probation occupancy, provided the conditions are met. The probation period cannot last longer than 1 year.

REGISTRATION IN THE CADASTRE

The final stage in the construction process is the registration of an erected structure in the Real Estate Cadastre or in the Land Book Registry kept by municipal court.