On 8 August, the Chamber of Deputies approved the Bill on Cadastre Register that has been rejected by the Senate. The Chamber of Deputies passed the amendments that had been put forward by the Senate. The Bill primarily aims at unifying the current situation in which there are two Acts that regulate the process of real estate property evidence (the Cadastre Act) and any evidence of any property changes (the Act on Cadastre Entry). The Bill implements provisions of the New Civil Code. The New Civil Code stipulates that a building cannot separately exist without a lot on which it lies. The Bill therefore stipulates that any entries of property changes cannot involve changes of buildings without lots. Further, the Bill ensures the correctness a legal bindingness of any entries recorded in the Cadastre Register (acting of all persons dealing with the property in good faith). That provision should eliminate any uncertainty of real estate market. The Cadastre Register also stipulates the necessity to keep prices of real estate properties for purposes of state statistics and real estate market.

For further information, click here (explanatory report).

In connection with the New Civil Code and the Cadastre Act, the Chamber of Deputies passed the Bill on Real Estate Transfer Tax in the third reading that had been proposed by the Ministry of Finance. The Bill reflects changes in the real estate property (indivisibility of a building and a lot) introduced by the New Civil Code. Further, the Bill stipulates that a person-purchaser is levied a real estate transfer tax. The aim of the Bill is to lower the real estate prices as sellers artificially increase prices because of their duty to pay the transfer taxes. Besides that, the purchaser is a guarantee at the same time in the current legal provision. The Bill seeks to implement property certainty for purchasers and simplify the process of tax administration.

The Bill is heading to the Senate.

For further information, click here (explanatory report).