Amendments of the Set of Laws Related to Construction

These are:

1. The Law on Amendments and supplements to the Law on Spatial Planning and Construction, which came into force on 4 August 2023; then
2. The Law on supplements to the Law on Legalization of Buildings, which came into force on 28 July 2023; and
3. The Law on Cessation of Validity of the Law on Special Procedures for Realization of Projects of Construction and Reconstruction of Linear Infrastructural Objects of Special Importance of the Republic of Serbia, which came into force on 4 August 2023.

The highest level of attention is given to the amendments and supplements to the Law on Spatial Planning and Construction. We have already discussed these amendments while the same was still in the phase of law proposal.

The most significant amendments and supplements to the Law on Spatial Planning and Construction address the matter of conversion, i.e. conversion of the right of use of the construction land to ownership right without remuneration. The obligation to pay conversion fees is now abolished for a significantly larger group of entities than before. This matter was discussed in more detail in the text available at the above link.

Besides this amendment, the amendments and supplements to the Law on Spatial Planning and Construction give special attention to the matters of energy efficiency, green agenda and to the protection of natural resources and cultural heritage. For example, now it shall be mandatory to obtain the certificate on energy properties of the building, i.e. separate part of the building, for the purposes of certification of the real estate sale-purchase agreement, as well as for the purposes of execution of the agreement on real estate lease.

The participation of competent organizations for the protection of nature and organizations for the protection of immovable cultural heritage is enhanced, especially in the procedures of preparation and adoption of spatial planning documents. The law introduces the notion of “green building”, “green building certificate”, as well as the notion of “green infrastructure”. The Government of the Republic of Serbia should, on the basis of the proposal of the Ministry of Construction, Traffic and Infrastructure, and pursuant to the authorization granted to it by the law, determine the incentives for green building. The investors shall be incentivized to pursue green building through the reduction of contributions for the development of construction land for facilities for which the green building certificate is issued.

The amendments and supplements of the Law on Spatial Planning and Construction introduce the establishment of the Agency for Spatial Planning and Urbanism of the Republic of Serbia, as the public agency, the establishment of a chief state urban planner and chief urban planner of the autonomous province, who shall be in charge for control of spatial and urban planning documents. Also, the amendments extend potential entities that are authorized for issuance of the information on location.

Also, simultaneously with the adoption of the Law on Cessation of Validity of the Law on Special Procedures for Realization of Projects of Construction and Reconstruction of Linear Infrastructural Objects of Special Importance of the Republic of Serbia, the amendments and supplements of the Law on Spatial Planning and Construction implement thereof provisions that tackle certain important matters for construction of linear infrastructural objects that are recognized as linear infrastructural objects of special importance for the Republic of Serbia.

As per the Law on supplements to the Law on Legalization of Buildings, the adopted supplements are good news for the owners of illegally constructed facilities, and especially for the owners of illegally constructed residential buildings, or of the apartments in the illegally constructed buildings. Their buildings may be temporarily connected to the utility and electric grid network of public companies, regardless of when these buildings were constructed.

By Ivan Petrovic, Head of Real Estate department and Marija Vukcevic, Senior Associate, JPM & Partners