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New Law on Legalization

Law firm Vaić & Dvorničić Ltd. > Real estate law  > New Law on Legalization

New Law on Legalization

The amendments to the Act on the Treatment of Illegally Constructed Buildings once again open the possibility of submitting applications for legalization, that is, the legalization of certain illegally constructed structures. It is important to distinguish two things: the law does not allow new illegal construction and does not legalize everything that was built without a permit. It primarily concerns old structures that existed by 21 June 2011 and that satisfy the prescribed conditions.

In this context, legalization means the subsequent legalization of an already constructed building or part of a building. If, for example, a house, garage, auxiliary structure, added storey or enclosed terrace was previously built without the required permit, such a structure may, under certain conditions, be brought into the legal system. The procedure does not end with a building permit for future construction, but with a decision on the as-built condition. By that decision, the competent authority determines that the specific existing condition, to the extent stated in the documentation, is legalized.

The key date is 21 June 2011. A structure built after that date without the required permits cannot be legalized under this law. The same applies to later additions, superstructures or extensions. If, for example, a house existed before 2011, but an additional storey was built in 2015, that later part cannot simply be included in the old legalization. In the procedure, it is therefore specifically determined what exactly existed by the prescribed date.

The existence of the structure is not proven by the owner’s statement alone. Official bases are required, most often the 2011 orthophoto image of the State Geodetic Administration or another official cartographic or cadastral base. In practice, it is checked whether the structure was visible at that time and to what extent. This may be simple for a house that is clearly visible in the image, but more complex for terraces, smaller additions, auxiliary structures or changes that cannot be seen from the air clearly enough.

A structure built after 21 June 2011 cannot be legalized. Structures on certain prohibited or specially protected areas also cannot be legalized, for example on the maritime domain, in infrastructure corridors, on certain areas of public purpose, on water or forest land, in areas of special protection or in locations where the law expressly excludes legalization. A particular distinction should be made between buildings and mobile homes, camper trailers, containers, kiosks, tents and similar assemblies. Such structures cannot automatically be considered buildings that may be legalized.

The application is submitted to the competent administrative authority through the eDozvola system. This makes the procedure more digital, but not simple without professional preparation. The application must be complete. If the prescribed documentation is not attached, the application is not considered duly submitted. Therefore, before submitting the application, it is necessary to check the basic conditions and prepare the prescribed documentation.

As a rule, a geodetic survey of the as-built condition or the appropriate cadastral extract is required, as well as an as-built survey prepared by an authorised architect or civil engineer, a statement by an authorised civil engineer on mechanical resistance and stability, and proof that the structure existed by 21 June 2011. Depending on the location and type of structure, additional confirmations or consents may also be required, for example if the structure is located in a cultural protection zone or in an area for which a special authority is competent.

Legalization is not free of charge. The owner must take into account the cost of preparing documentation, that is, the cost of a surveyor, designer or other authorised professional. In addition, a fee is paid for retaining the illegally constructed building in space. The amount of the fee depends on the size, location and intended use of the structure, and the specific amount is determined according to the regulations governing the calculation of the fee. Before starting the procedure, it is advisable to roughly check the expected costs in order to assess the financial justification of the procedure.

If the procedure is carried out successfully, the structure obtains a more regulated legal status. This is important for sale, inheritance, condominium subdivision, connection to infrastructure, investment in the structure or discussions with a bank. Real estate whose status is regulated is, as a rule, safer for transactions and easier to prove in legal dealings. However, legalization of a building does not automatically resolve ownership of the land, disputes among co-owners, boundaries or other property-law issues. If the ownership status of the land is not in order, that problem must be resolved separately.

Before submitting the application, four basic matters need to be checked: when the structure was built, whether it is visible on official bases by 21 June 2011, whether it is located in an area where legalization is permitted and whether the ownership status of the land is in order. Only after such a check does it make sense to engage professionals and prepare documentation. In doubtful cases, it is advisable to request the opinion of a surveyor, designer or lawyer before incurring larger costs.