Fic rEcommEndationS - Eurobank EFG

leased, but not according to current market conditions.
Such practices discourage quality retailers from entering
the market and contribute largely to the grey economy, thus
reducing budget revenues. There is also a large number of
other real estate that could be overtaken through privatisation
of the companies that own it.
Management and maintenance policy of residential property
has not changed since 1995, when the existing Law
was adopted. Since then, there have been no significant
amendments to the Law on Management and Maintenance
of Residential Property that does not foresee any
model of professional residential management, (currently
this is a voluntary service performed by the president of
the house council), and is not binding for residential owners.
The generally accepted organisation model still heavily
reflects cooperation with public utility companies with
an option to engage some privately-owned enterprises for
specific works.
construction
The issue of construction permits is still non-transparent,
long and heavily burdened with bureaucracy. The major
problem with respect to the procedure for issuing construction
permits is the fact that the greatest part of buildable
land is not covered by adopted urban plans that are
regarded as a precondition for the issue of the construction
location and associated permit. The new Law should
improve the current situation.
Poor infrastructure and bureaucratic procedures in public
utility companies involved in this process are a major problem
in construction. A reform of this sector is crucial for the
entire procedure.
An additional problem with respect to the procedure for
issuing construction permits is the fact that the location
ownership right has to be acquired before applying for the
construction permit. In most cases this means that the conversion
procedure should be completed prior to the issuing
of the construction permit, which significantly prolongs the
procedure and may entail additional costs. Since the conversion
process for a fee involves either great difficulties or
impediments, many sites that could attract investors are
not available for development.
The existing legal framework defining the relationship between
investor and main contractor is not in accordance
with internationally recognised best practice.
Land cadastre
The new Law on Cadastre and State Survey was adopted
in August 2009 and should enable a more efficient state
survey and establishment and maintenance of a real-estate
cadastre. The Law defines the main principles of cadastre,
based on the European model of land books and other cadastral
registries in order to increase transparency and accuracy
of cadastral records.
The Cadastre Project in Serbia has not been completed
yet. Several municipalities in Belgrade (Novi Beograd, Stari
Grad, Vracar), set up their cadastral registry system, but this
process ought to be finalised as soon as possible. Consequently,
the announced deadline for cadastral registration
set at end of 2010 has not been achieved.
Incomplete land books and other land-related records are
indisputably the key problem in this area, contributing to
irregularities in the process of acquiring property rights.
The extremely challenging and inconsistent interpretation
of relevant regulations on behalf of cadastral authorities
and additional difficulties caused by the slow decisionmaking
by the line ministry concerning appeals on issued
decisions, pose an additional problem.
restitution
The Law on Property Restitution and Compensation was adopted
in September 2011, and is in force from 6 October 2011.
The priority of the restitution process is grounded in its
tremendous potential for promoting security of ownership
rights in a symbolic and exemplary manner, clearly showing
that the State is returning what it has unjustly expropriated.
On the other hand, the adoption and implementation
of the law regulating restitution is a condition for Serbia’s
accession to the EU.
Law on Property Restitution and Compensation protects the
acquired rights of natural persons and private companies,
while the obligation of restitution arises only in the event
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