5 August, 2020

An Amendment to the Law of Property Code

On 29 March 2020, an amendment to the Law of Property Code (hereinafter: SPZ-B) entered into force, which was understandably overshadowed by the epidemic of the COVID-19 virus, given the course of events around the world. Nevertheless, it is not too late to get acquainted with the novelties of SPZ-B, as the individual provisions, which we draw attention to below, began to apply at the beginning of the previous month, ie. with 1 July 2020, and some will only start to apply with 1 July 2021.

One of the central changes brought by SPZ-B is the renewal of the register of non-possessory liens and confiscated movables, maintained by the AJPES web portal. The operation of the register will be regulated in more detail by the Government with a decree, also a more user-friendly and modern register is promised, with a direct link to some other registers and official records, such as e.g. Central population register, land cadastre and building cadastre, motor vehicle record, etc.

In addition, thanks to SPZ-B, from now on, a notarial deed will be sufficient for the creation of a consensual non-possessory lien on movable property which may also be directly enforceable in accordance with the agreement of the contracting parties.

Furthermore, SPZ-B extensively regulates the legal positions related to commonhold, namely the issue of linked property, individual parts of the building and individual plots, which also serve other commonhold or other property.

In connection with the institute of joint ownership, SPZ-B solves the problem of significantly aggravated or impossible management of the item in joint ownership that occurs in the case of inactive or unknown joint owners. Active joint owners, whose joint ownership shares represent more than half, now have the option of incident management of joint ownership in accordance with SPZ-B upon approval of the transaction by the court.

As a novelty, on the basis of SPZ-B, it is possible to establish a quasi-real easement in favour of a person who performs commercial undertaking for the public benefit and the easement is established for the purposes of performing this undertaking. Such an easement can be established for a period longer than thirty years, or even for an indefinite period. Easement in the public benefit is also transferable since the entry into force of the SPZ-B, and can be transferred to another entity that manages public utility infrastructure that is in the public benefit.

The regulation of the building title has also undergone several renovations, in connection with which SPZ-B removes the compulsory limitation of the duration to 99 years and at the same time allows the landowner and the holder of the building title to autonomously regulate the amount of compensation to be paid by the landowner to the holder of the building title after its termination.

Finally, one of the most resounding changes – SPZ-B grants a special legal status to animals. Namely, the new Article 15a states that animals are not things, but sentient living beings, whose protection is regulated by special laws.

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