Coming soon “block” on transfers of arbitrary properties – mandatory certification by an engineer

mploko

The draft law on construction by the Ministry of Environment, which will be open for public consultation until September 22, marks a new landscape in inheritance earnings with regard to real estate and any transfer.

Its provisions make it mandatory to obtain an engineer’s certificate in order to complete any legal transaction relating to real estate, imposing an additional cost on the parties concerned, without exempting those who accept an inheritance.

Specifically, Article 64 of the draft law clearly states that “in every legal transaction during one’s lifetime, including gifts upon death, drawn up after the publication of this law and having as its object the transfer or establishment of a real right in immovable property, including immovable property without buildings, a solemn declaration by the owner and an engineer’s certificate shall be attached.”

With this regulation, the ministry’s leadership believes that it will provide a definitive solution to the perpetuation of arbitrariness. However, in less than 24 hours of consultation, this specific article of the draft law seems to have attracted considerable opposition. An engineer’s certificate will also be required for every sale, parental provision, declaration of acceptance of inheritance or bequest, provided that it transfers to the heir or legatee the property of the inheritance or a real right over it, including undeveloped land.

Operating licenses

Furthermore, the requirement for a certificate extends to professional activities, as it must now accompany the application submitted by the interested party to the competent authorities for the granting of licenses to establish and operate any type of professional activity and professional establishment. Indicative examples mentioned in this article include licenses for the establishment and operation of:

  • Shops and workshops of sanitary interest.
  • Tourist businesses of any form and category (hotels, guesthouses, rooms to let rooms, tourist agencies).
  • Factories, workshops, and general professional facilities for tradespeople.
  • Gas stations, car stations, and car washes/oil changes.

A corresponding engineer’s certificate will be required for the transcription of the summary of the auction report for the property at auction to the competent land registry office or mortgage registry, in order for the registration to take place, as well as for the transcription of final court decisions on real property transactions or for the recognition of ownership of real estate acquired through extraordinary adverse possession. Both the owner’s solemn declaration and the engineer’s certificate constitute commitments, according to the draft law, that there are no unauthorized structures on the property or that, if there are any, they are in the process of being regularized or have been regularized. In many cases, in addition to the engineer’s certificate, which is valid for two months, a topographical diagram is also considered necessary.

At the same time, the bill introduces heavy fines, ranging from €30,000 to €100,000, depending on the value of the unauthorized construction, for notaries who draw up contracts, brokers who mediate, lawyers who are present at the drafting of contracts, registrars or heads of land registry offices who transcribe them in the absence of an engineer’s certificate. Corresponding fines are also provided for engineers who have issued inaccurate certificates, while the imposition of a temporary or permanent ban on practicing their profession by the competent disciplinary bodies of the body to which they belong is also specified.

It should be noted, however, that this article has already attracted a lot of criticism, much of it from notaries, who point out that these transactions are quite costly. They emphasize that additional costs would lead many to refuse to accept the offer, depriving the state of significant revenue, since, for example, in the case of several separate plots of land in the region, an engineer’s certificate for each one could significantly increase the costs.

The folder of the building

The draft law also establishes the “identity” of buildings, which must be completed within the next five years for every residence, within three years for public buildings, and within eight years for every other type of building. The “identity” of the building will be the file containing all its details (approved building permit, additions, energy performance certificates, and any changes), and will now also include a structural vulnerability report on its stability. An engineer will be responsible for preparing the reports, while the files for residential buildings will have to be rechecked by an engineer every seven years. The draft law stipulates fines of up to €20,000 for false information and suspension of the engineer’s professional license, without, however, mentioning the cost to the owner.