A bill (“the Bill”) amending and supplementing the Spatial Development Act (SDA) has been submitted, proposing changes that, if adopted, will significantly facilitate real estate transactions. It is envisaged that parking spaces, which currently do not constitute individual objects within a building, will be granted such status. In this way, they will be placed on an equal footing with garages, which are already considered individual objects within buildings and may be bought and sold separately.
1. Parking spaces to no longer be an “accessory” to the individual objects
In order to achieve the goal of allowing parking spaces to be transferred independently, the Bill provides that they will no longer be considered an “accessory” to the corresponding individual objects. Thus, they will no longer need to be subject to transactions only together with the property with which they were originally acquired.
The Bill’s explanatory memorandum notes that various circumventions of the current legal framework are being practiced in civil transactions. However, it emphasizes that such methods often constitute transactions without a valid subject matter or transactions circumventing the law (and therefore void under the provisions of the Obligations and Contracts Act). As a result, numerous problems arise in the lawful disposition of parking spaces.
2. Parking spaces to receive independent identification numbers and a legal definition
Another consequence of the proposed changes is that parking spaces will receive their own identification numbers and will be entered in the Cadastre as individual objects.
At present, parking spaces do not meet the definition of a “object” under the SDA. The amendments propose the creation of a new article in the SDA explicitly stating that “parking spaces within a building are individual objects — real estate within the meaning of Article 110 of the Property Act.” A legal definition of a “parking space” is also proposed, covering three scenarios:
- An individual object within a building — an underground or above-ground structure with the required access for parking and a connection to the public transport infrastructure;
- A real part of an undeveloped land plot or of an open yard area within a developed land plot, with the necessary access and connection to the public transport infrastructure;
- A designated parking area within an automated mechanical system that is permanently attached to the ground or building.
In this way, parking spaces will explicitly obtain the status of individual objects.
3. Establishment of a so-called “special servitude”
The Bill also introduces the concept of a “special servitude.” It is proposed that such servitude may be established over parking spaces that are not part of a building.
The proposed definition for this servitude is: “A limited personal property right over another’s property. The owner of the special servitude may freely dispose of it without the consent of the property owner. The special servitude is inheritable. It may be established for a fixed term.”
This section of the Bill will likely need revision, as the definition contains a legal contradiction. On one hand, it is a personal right (like a right of use), which by nature should expire upon the death of its holder. On the other hand, the proposal provides that it is inheritable.
4. Criticism of the Bill
Apart from refining the concept of the special servitude, criticism of the Bill has mainly come from the Ministry of Regional Development and Public Works. The Ministry argues that the proposed amendments will only deepen the existing parking problems in large urban areas. It maintains that the current legal framework serves the needs of residents actually living in the respective residential buildings. The Bill would allow for situations such as the majority of homeowners in a building being unable to purchase and use a parking space for their property.
The Free Owners Association maintains that this would legalize “illegal practices, including in tourist complexes.”
The team at Ilieva, Voutcheva & Co. will closely monitor the development of the Bill.
The news above is for information purposes only. It is not (binding) legal advice. For a thorough understanding of the subjects covered and prior acting on any issue discussed we kindly recommend Readers consult Ilieva, Voutcheva & Co. Law Firm attorneys at law.
