Real estate and construction | In Principle

Litigation relating to real estate and construction projects falls under the jurisdiction of the common courts, as well as public administrative bodies and administrative courts.

The subject matter concerning real estate varies, hence the diverse range of institutions dealing with dispute resolution in this regard.

The common courts adjudicate on an adversarial or non-adversarial basis.

Real estate and construction matters resolved by the common courts on an adversarial basis include:

• Claims arising from real estate lease or tenancy agreements
• Claims relating to the performance of agreements transferring ownership or perpetual usufruct rights, including claims arising from preliminary or promissory sale agreements
• Claims relating to performance of construction contracts
• Actions to amend the land and mortgage register to reflect the actual legal status
• Disputes relating to the manner of use of real estate under perpetual usufruct.

The common courts adjudicate the following property-related matters on a non-adversarial basis:

• Partition of real estate, declaration of acquisition by prescription, elimination of joint ownership, or establishment of easements
• Maintenance of land and mortgage registers.

Public administrative bodies and administrative courts resolve matters relating to:

• Adoption of local zoning plans
• Issuance of decisions on terms of construction and land development
• Construction procedures, including issuance of building design approval, building permits and occupancy permits
• The manner of use of real estate, partition and survey of property, expropriation, and shared costs for construction of technical infrastructure
• Land and building records.

Proceedings for adjustment of perpetual usufruct fees may fall in a different category. An application is filed with the body representing the owner (local district or State Treasury). An application disputing the new fee or seeking a reduction of the new fee is reviewed by the local government appeal board. The common court will review opposition to decisions of the local appeal board.

Proceedings before common courts are conducted in accordance with the Civil Procedure Code. Administrative proceedings are conducted on the basis of the Administrative Procedure Code and, to the necessary degree, the Real Estate Management Act.

The main laws governing real estate transactions and construction include the Planning and Zoning Act, the Construction Law, the Real Estate Management Act, the Land and Mortgage Register and Mortgage Act, and the Civil Code.