It's another Tuesday morning, so we're sending you, for the 10th time now, a discussion of the amendments to the Construction Law, this time related to changes in the procedure for transferring the decision granting a building permit .

As we have previously reported, a major amendment to the Construction Law comes into force on September 19, 2020. Today, we want to discuss changes that will undoubtedly be a significant convenience for many investors . As part of streamlining the investment process, the legislature has decided to significantly simplify the procedure for transferring building permits.

In accordance with the regulations still in force, in the event of a change of the owner or perpetual usufructuary of the real estate, a change of the addressee of the building permit decision each time requires the new investor to attach to the relevant application for change: the consent of the previous addressee of the decision and to submit a declaration of the right to use the real estate for construction purposes.

In accordance with the amended wording of Article 40 of the Construction Law, to attach the following to the application for transfer of the building permit :

  1. declaration of acceptance of the conditions contained in the transferred building permit decision,
  2. a declaration of having the right to dispose of the property for construction purposes and
  3. consent of the previous investor in whose favour the decision was issued, unless the ownership or rights resulting from perpetual usufruct of the real estate covered by the building permit decision were transferred from the previous investor to the new investor after the issuance of that permit .

By adding a new paragraph 1a to Article 40 of the Construction Law, the legislator has therefore excluded the obligation to attach the consent of the current investor to transfer the decision in the event of transferring the legal title to the real estate covered by the building permit to a new investor .

This change will undoubtedly significantly simplify the formal process of transferring building permits. There is no doubt that most real estate transfer transactions also involve the seller transferring the building permit, and consent to its transfer should generally be granted upon the conclusion of the sales agreement or other agreement transferring ownership or perpetual usufruct to the property.

Importantly, the parties to the proceedings for the transfer of a building permit will continue to be only the current and the new investor.

obligations arising from a notification has not changed the consent of the current investor will still be absolutely required in this procedure .

We invite you to follow our articles regularly: last week we wrote about the change in the definition of the facility's impact area and issues related to the determination of the parties to the proceedings , and next week we will discuss the issue of declaring a building permit invalid.

Download the table containing the changes

This material is for informational purposes only and does not constitute legal advice.

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