Revolutionizing Real Estate: Ministry's Bold Moves Ensure Smooth Land Transactions and Buyer Protections

Imagine a world where the headaches of land buyers are a thing of the past. The Ministry of Internal Affairs has pulled off a game-changer, addressing the snag that hit land purchasers out of the blue. Thanks to prolonged bureaucratic delays, buyers were left without the essential ownership documents. But rejoice! The Ministry has instituted a new protocol effective from the beginning of this year, aiming to streamline the property ownership process handled by the Department of Cadastre and Land Management.

So, what’s the scoop on this new approach? Well, besides making the transfer of mortgage-laden real estate a breeze, the ultimate goal is to amp up transparency in transactions between citizens. The Ministry’s fresh policy, kicking in on January 2, 2024, is all about speeding up the property ownership process. According to the Ministry of Internal Affairs, one of the key perks of this new process is the introduction of external demarcation before dividing plots. This means that any further development will now stay within the actual boundaries of the land plot, avoiding surprises.

But that’s not all – the Department of Cadastre and Land Management has also introduced the role of a competent private land surveyor. These folks are taking charge of the necessary land development procedures, cutting down on delays. Citizens can now dive into spatial projects without waiting for the bureaucratic machinery to catch up, thanks to the innovative measures estimated to trim down the entire property rights process to an average of three months.

And there’s more on the horizon! The Ministry of Internal Affairs is revamping the way citizens get property rights information. A corresponding law proposal is in the works, aiming to simplify procedures. As per the proposal, interested parties can request details about registered property owners and real encumbrances affecting the property. Applications can be submitted through the Land Cadastre platform, DLS PORTAL, or via email.

Adding to the mix, the House of Representatives passed a law in December of the previous year concerning real estate sales, specifically focusing on creating a mechanism to protect the interests of property buyers. This ensures that property transfer happens promptly as soon as the buyer fulfills contractual obligations as per the Sale-Purchase Agreement/Document.

Furthermore, sellers are required to include a Survey Report of the affected property, outlining any encumbrances, as an integral part of the Sale-Purchase Agreement/Document. Failure to comply can result in an administrative fine of up to 10,000 euros imposed by the director of the Department of Cadastre and Land Management on the seller.

If, at the time of submitting the Sale-Purchase Agreement, the property is already mortgaged, buyers have the option to pay the mortgage amount directly to the bank as part of the total property purchase price. This allows the property to be released from the mortgage after payment, with the bank issuing a Payment Certificate. The buyer then presents this certificate to the Department of Cadastre and Land Management to complete the property transfer.

In case the bank fails to fulfill its legal obligations, the director of the Department of Cadastre and Geodesy can impose an administrative fine of up to 100,000 euros.