Abolishing the fee as the only solution for land conversion

The state needs to enable automatic registration of property rights in the Real Estate Cadaster for all entities that have the right to land use, including those that pay the land conversion fee, as this is the only way to consistently apply the principle of real estate unity. Land conversion should be enabled without paying compensation or with the prescribing of a one-time fee that will not discourage entry

- The Planning and Construction Act from 2009 was supposed to resolve property and legal relations over business-owned land, but it resulted an even bigger issue in 2020 and now 5,000 hectares of construction land are "trapped". The state does not give up conversion revenue for a fee, and on the other hand it has made very little profit on that basis while losing much more, from unpaid property taxes or taxes on the transfer of absolute rights, different building purposes and mostly in unrealized investments – says Aleksandar Vujošević, Legal Affairs Director at Neoplanta, which is an Alliance member.

The discussion indicated that all of currently used land could be registered in the cadastre in a very short time and that the non-implementation of the law regulating conversion with compensation is putting the brakes on the work of the Republic Geodetic Authority because any enrollment that involves "going back in time" to determine property relations slows the resolution of proceedings and piles of cases in the institution.

Businesspeople gathered in the Alliance assessed that conversion blocks investments and that the state has lost more than companies as a result. Businesses, on the other hand, in addition to unrealized investments and new jobs, are at a loss and because of the fact that something they already bought and paid for at a time when conversion was not possible, they must now pay again, and they cannot invest in existing property because they are prohibited from building and it is more difficult to sell because of an unresolved conversion that makes the land lose value.

The session noted that the Alliance's activities over the next two years will focus on three areas – further improvement of registration procedures in the real estate cadastre, development of the digital spatial planning system (eSpace) and improvement of the regulatory framework for asset management.

Alliance members have already sent a series of initiatives to the new government, including proposals to improve the safety of construction workers, implement electronic bills and build infrastructure in the field of renewable energy sources.

The event also noted that from next year, important newspapers will take effect in proceedings before the Republic Geodetic Authority – applications for registration in the cadastre will no longer be able to be submitted in paper, while all interested parties will be allowed to receive cadastral solutions in eMailbox that they can open on the eGovernment website. From 2021 to 2025, citizens will be able to communicate with the cadastre exclusively through the so-called professional users (real estate agents, lawyers, geodetic organizations, etc.).

Novelties in the process of deciding on registration

On the session’s agenda, Miloš Bjelanović, Head of the Second Instance Department of the RGA, presented the novelties in the work of the RGA in the process of deciding on registration, and especially on the work of the Second Instance Department of the RGA, emphasizing that from February this year only once, while if the case is found again on appeal to the second instance body, it no longer has the possibility of returning the case to the first instance body, but instead a meritorious decision on registration has to be made which significantly shortens the decision deadlines.

Also, Bjelanović noted that merging procedures as required by Article 35 is now applied much more often. Paragraph 3 of the Law on The Procedure of Registration in the Cadaster, when there are previously unresolved claims on the same real estate. On this occasion, he discussed with NALED members a special type of pre-registered buildings under construction, and the problems currently plaguing the Authority, which did not fully survive in practice because the competent authorities do not regularly submit documentation to the cadaster for registration of the pre-record.

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