Tax & Legal Highlights for Real Estate – December 2020

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1. Online bailiff auctions of real estates

On 8 December 2020 the Council of Ministers adopted a project of the Act amending the Act ˗ Civil Procedure Code and other acts. The changes introduce the possibility of auctioning real estates in an electronic system, similar to the system that is already in place for movables. Authors of the project justify the above mentioned changes with the desire to increase the transparency of auction processes and speed up the slow auctioning of real estates. The project also assumes a correction of Article 953 paragraph 1 point 5 of the Civil Procedure Code with regard to the access of third parties to the entire files of the debtor’s enforcement proceedings, violating guarantees of protection of personal privacy. Introduction of the online auctioning of real estate in undoubtedly an interesting solution, especially in the wake of the Covid-19 pandemic, which forced a rapid digitalisation of some of the proceedings. It is worthwhile to observe further works on the introduction of the aforementioned Act to legal practice.

2. Project of amendments to the Act on suspending the sale of real estate of the Agricultural Property Reserve of the State Treasury and amending other acts

On 27 November 2020 the Minister of Agriculture and Rural Development submitted a project of the Act amending the Act on suspending the sale of the Agricultural Property Reserve of the State Treasury and amending other acts. The proposed changes are aimed at securing agricultural real estate of the State Treasury against selling out, at the same time releasing larger plots of land from the sale ban. The Project envisages extension of the period of suspension of sale until 30 April 2026. This change is justified by continuing interest in leasing of this type of properties and the prevention of speculation in land prices. However, despite the extension of the general ban on sale, the project also envisages an increase in the maximum area of the property released from such ban from 2 to 5 hectares. The project is in an early stage of works, so it may be subject to further amendments, but it may be important from an investment point of view, due to the increase in the maximum area of real estate allowed for sale.

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