Tax & Legal Highlights for Real Estate – March 2020
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1. Changes in Construction Law due to Coronavirus Act
Due to the spreading epidemic of coronavirus, the so-called coronavirus Act has been adopted and is in force since 8 March. Within 180 days of its entry into force, if it is necessary to take immediate action against the virus, the provisions of the Construction Law, the Act on Planning and Spatial Development and the Act on the Protection of Historical Monuments will not apply to the design, construction, reconstruction, repair, maintenance and demolition of buildings, including changes in use. Under the Act, the executive regulations to the aforementioned acts, including the regulation on technical conditions of buildings and their location, will not apply either. However, the experts have warned that these solutions may result in construction of buildings potentially posing a threat to safety of their users.
2. Performance of construction works during pandemic
On 21 March a draft of amendment of the Coronavirus Act was prepared, which provides that in the case of conducting construction works and changing the use of the building object, an investor is obligated to immediately inform the architectural and construction authority. If performance of such works will pose a threat to people’s health and life, the authority, by way of a decision subject to immediate execution, may immediately determine requirements for their secure performance. Furthermore, if construction works are subject to obtaining a building permit in accordance with the Construction Law, the investor shall ensure their management and supervision by an expert having building qualifications in relevant specialties.
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