A new approach to construction design
The recent amendment to the Construction Law introduces a new element of the construction design: the technical design, which will not be enclosed with the application for a building permit. This will speed up the initial stage of the project.
Narrower set of parties in cases seeking a building permit
A relatively small change in the definition of the impact area of a project in the amendment to the Construction Law which entered into force since 19 September 2020 has resulted in a significant change in the rules for determining the set of parties in cases seeking a building permit.
Transfer of a building permit without the consent of the prior investor
Since 19 September 2020, acquirers of real estate have been able to transfer a building permit to themselves without the consent of the prior investor. Does this change facilitate implementation of development projects by property buyers?
New rules for legalisation of unlawful construction
The amendment to the Construction Law has made life easier for some owners of unlawful structures. Those whose structures were built over 20 years ago can rest easy. So long as their structure is in proper technical condition, they are not threatened with a high legalisation fee or a demolition order. The regulations governing other unpermitted structures have also been simplified and consolidated.
No more legalisation of unlawful construction with a variance from technical construction regulations
Under the amended Construction Law in force from 19 September 2020, in a proceeding seeking legalisation of unlawful construction it will no longer be possible to seek consent to a variance from technical construction regulations, due to the express wording of the new Art. 9(5) of the Construction Law. Investors who had planned to legalise an unpermitted construction while obtaining a variance from technical regulations will not obtain such approval. The same applies to investors who filed a request before 19 September 2020 and were awaiting the minister’s position on the variance.
Restaurants at shopping malls also eligible for temporary termination of leases
Shield 4.0 clarified that the possibility of temporary termination of lease contracts applies to all spaces in commercial structures with a sales area over 2,000 m2. The earlier wording of this provision raised many doubts.
Tenant’s right to unilaterally extend lease agreement during the coronavirus epidemic
Entry into force of the Anti-Crisis Shield, i.e. the 31 March 2020 amendments to the Anti-Crisis Act, has had a strong impact on the real estate market, especially the rental market for space at shopping centres. In addition to the widely discussed Art. 15ze, which has extinguished mutual obligations of the parties to lease agreements, the parliament has also introduced another important provision which may significantly affect the rights and obligations of not only the parties to lease agreements, but also other participants in commerce.
Expiry of mutual obligations of parties to lease agreements in shopping centres
As a result of the parliament’s intervention, mutual obligations of parties to lease agreements in shopping centres are deemed to have “expired.” Does that mean that the lease agreements have expired?
The state of epidemic and the construction process
The coronavirus epidemic is generating new problems for parties to business transactions: restrictions on business operations, supply disruptions, limited availability of staff and materials, changes in the operation of public bodies and post offices. The downtime they cause has effects not only on civil-law grounds. In addition, there is the issue of expiry of administrative permits. Do the existing regulations, and the new Anti-Crisis Shield, offer any solution?
Investor’s situation under construction contracts during an epidemic
Many investors currently carrying out construction projects or planning to start them in the near future ask us about the legal possibilities to suspend a project or even withdraw from existing contracts. The question arises whether it makes sense to continue or start projects when implementation will require large financial capital and considerable resources. In this article, we identify legal instruments that may be available to an investor who would decide to stop the performance of works or definitively withdraw from a construction contract.
Situation of contractors performing construction contracts in the private sector
The pandemic may delay the performance of construction works and increase their costs. It may even make it completely impossible for a contractor to fulfil its obligations. But how this affects the contractors’ legal situation depends on the factual circumstances of the given case and the wording of the specific construction contract.
COVID-19 and failure to act by public bodies
The solutions provided for in the Anti-Crisis Shield are intended to activate extraordinary instruments supporting businesses during the pandemic. Can changes in the running of time limits provided for by law, including proceedings before public administrative bodies and administrative courts, be regarded as such a solution?
