Law on Special Conditions for the Registration and Entry of Rights to Real Estate

On 24 October 2025, in the Republic of Serbia, the Law on Special Conditions for the Registration and Entry of Rights to Real Estate (“Official Gazette of the Republic of Serbia,” No. 91/2025 – hereinafter referred to as the “Law”) entered into force.By adopting the Law, the legislator sought to systematically resolve the decades-long issue of illegal construction in the Republic of Serbia. A rough estimate indicates that, at the time of the adoption and entry into force of the Law, there were approximately 4.8 million illegally constructed buildings in the Republic of Serbia — nearly one illegal structure per capita.Previous legislative attempts to find a legally acceptable solution to this issue failed to produce the expected results, primarily because the procedure was slow and costly, and its effects were limited. Only a minor portion of illegally constructed buildings was legalized, while the total number of such structures doubled in the meantime. For these reasons, the previous legislative solutions were abandoned, and upon the entry into force of the Law, the Law on the Legalization of Buildings (“Official Gazette of the Republic of Serbia,” Nos. 96/15, 83/18, 81/20 – CC, 1/23 – CC, and 62/23) ceased to apply, whereby all ongoing proceedings under that law were discontinued as of the date the new Law entered into force. The legislator now aims to enable the majority of owners of illegally constructed buildings to legalize their property in an efficient and cost-effective manner, thereby obtaining legal certainty and the ability to dispose of such property. Conversely, the interest of the Republic of Serbia lies in recording these buildings for the purpose of further spatial and urban planning, thus resolving a decades-long problem that negatively affects numerous aspects—fiscal, urbanistic, and construction-related. The legislator’s intention was to put an end to illegal construction in the Republic of Serbia by introducing a zero-tolerance policy towards unauthorized building activities and by establishing strict sanctions for those who commence illegal construction after the Law’s entry into force.

In this text, the author presents an objective analysis and conclusions concerning the advantages and shortcomings of the Law, focusing only on its key aspects. In the author’s opinion, many provisions of the Law remain imprecise at this stage and require further elaboration through the adoption of by-laws, which, at the time of drafting this text, have not yet been enacted.

The analysis begins with the very title of the Law – the Law on Special Conditions for the Registration and Entry of Rights to Real Estate. The title itself reflects the legislator’s intent to record illegally constructed buildings and, where possible, determine ownership thereof.

However, this brings us to a key provision of the Law (Article 5, paragraph 2), which stipulates that the Republic of Serbia does not guarantee the safety and security of the use of a building, part of a building, or a special part of a building entered in the Real Estate Cadastre and the Register of Rights thereto pursuant to the provisions of this Law. From the foregoing, it is evident that the primary objective of the Law is to record currently unregistered buildings (with an annotation indicating that the building was entered on the basis of this Law). However, the issue of safety — or, to be more precise, the structural stability of such buildings — remains open.

While the legislator’s intention to record illegal structures is commendable, the author considers the question of their safety, particularly their impact on the surrounding environment, to be of crucial importance. This issue, however, receives limited attention within the Law itself, which merely stipulates that the Republic of Serbia does not guarantee the safety of such buildings and that responsibility lies solely with their owners. The Law does not clearly define the manner in which the stability and safety of such buildings shall be assessed, nor the consequences if a building is determined to be unsafe. Therefore, it is the author’s view that this matter should be further elaborated through potential amendments to the Law.

1) What Is the Subject of Registration?

The scope of objects subject to registration under the Law is broad. Primarily, it includes all buildings, parts of buildings, or special parts of buildings that were constructed contrary to the law, as well as those structures, parts of structures, or special parts on which construction works (such as repair, reconstruction, change of use, etc.) were carried out without having obtained the required decision approving the execution of such works. Furthermore, the Law applies to buildings for which a temporary construction permit was issued before 13 May 2003, as well as to buildings constructed at a time when the issuance of a construction permit was not required, provided that ownership rights to such buildings have not been recorded in the Real Estate Cadastre. The subject of registration also includes other categories of buildings, which shall not be listed and analyzed in this text. The author therefore refers all interested parties to Article 1 of the Law, which contains a detailed list of all structures subject to registration under this Law.

As mandatory conditions for registration, the Law prescribes that such buildings must:

1. be constructed on construction land; and
2. be visible on satellite or other images and/or be included in databases maintained by the Agency for Spatial Planning and Urban Development of the Republic of Serbia (hereinafter: the “Agency”) and the Republic Geodetic Authority (hereinafter: the “Authority”).

With respect to these conditions, two exceptions are provided, in which cases the Law shall also apply:

• Buildings constructed on agricultural or forest land, provided that such buildings fulfill the other conditions prescribed by this Law and by the laws governing agricultural and forest land;
• Buildings constructed within the second protection zone of public goods, buildings that partially occupy the protective zone of public roads, buildings within the protection zone of high-voltage power lines, as well as buildings within the protection zones of military complexes, military facilities, military installations, and military depots, which may be registered under this Law if the manager of the public good, or the Ministry of Defence, issues consent to the Agency for the registration of ownership rights to the building.

It is also important to note that the Law provides for the registration of buildings constructed on parcels in the private ownership of the applicant, which — according to the spatial plan in effect on the day the Law entered into force — are designated for the construction of public-purpose facilities or as planned public areas that must be in mandatory public ownership but have not yet been developed for their intended purpose. However, in the event that such parcels are subsequently developed in accordance with the plan, the owner of the parcel is not entitled to compensation of the market value of the building situated on that parcel, but only to compensation of its construction value, except in cases where the building constitutes the owner’s sole real estate, in which case the market value may be compensated.

It should be emphasized that Article 2, paragraph 1 of the Law stipulates that buildings constructed on land in public ownership which, according to the spatial plan in effect on the day the Law entered into force, is designated for the construction of public-purpose facilities in mandatory public ownership; or buildings constructed on public land that constitutes an area of public purpose in mandatory public ownership; buildings constructed in the first protection zone of natural assets and in the protection zones of cultural properties of great or exceptional importance; buildings constructed in the second protection zone of a natural asset located on public land; buildings inscribed on the World Heritage List, or constructed on a cultural property itself; buildings located on public water property, within railway corridors, within the immediate sanitary protection zone of water sources, as well as within the expropriation zones of state roads of categories IA (motorways) and IB (expressways) — shall be registered, and ownership rights to such buildings shall be recorded in favor of the Republic of Serbia, pursuant to the provisions of this Law.

This is an exceptionally important provision, clearly indicating that the legislator, in cases of the most extreme forms of illegal construction (i.e., construction on parcels in public ownership, in the first protection zone of natural or cultural goods, on public water property, etc.), has provided for their registration and the entry of ownership rights in favor of the Republic of Serbia. The author of this text welcomes this legislative approach, considering that in such extreme cases, only radical solutions can be effective, and that this method best serves the protection of the public interest.

Conversely, the subject of registration does not include buildings for which an application has been submitted but where the Agency determines that the construction had not been completed before the date of entry into force of the Law. In such cases, the provisions of the Law on Planning and Construction shall apply, specifically those concerning the construction of buildings without obtaining a construction permit, an approval for execution of works, or an occupancy permit. Such buildings shall be removed or registered in favor of the Republic of Serbia, based on a confirmation issued by the Agency. Through this provision, the legislator once again emphasizes that further illegal construction will not be tolerated and that all illegal structures erected after 24 October 2025 shall either be removed or registered in favor of the Republic of Serbia. The author of this text welcomes this measure as a step in the right direction toward the suppression of illegal construction.

2) What Is the Procedure?

The legislator sought to accelerate the process as much as possible by introducing a rapid, efficient, and digital solution, thereby enabling a broad range of subjects to submit applications within a short period of time. The registration of real estate itself will be carried out through the use of digital technologies, aerial imagery, and remote sensing technologies, whereby the structures will be identified within a 3D model. Applications shall be submitted through a digital platform established by the Agency, and the legislator has expressly prescribed that one application shall be submitted for each individual property, meaning that a new application must be filed for each additional property.

The intended procedural flow, as conceived by the legislator, is as follows:

1. Local self-government units shall upload their zoning plans to the platform within 30 days from the date of entry into force of the Law, i.e., no later than 24 November 2025;
2. The Agency shall then verify the submitted data within 15 days, i.e., no later than 8 December 2025. From the date on which the Agency publishes the dataset for public display, a 60-day period shall commence for the submission of applications;
3. Citizens shall then submit their applications via the established digital platform within the 60-day period, i.e., no later than 8 February 2026;
4. The Agency shall assess the submitted applications and issue appropriate decisions.

Based on a submitted application, the Agency may issue one of the following decisions:

1. Issue a confirmation of fulfillment of conditions for property registration, which constitutes a valid document for registration, and forward it to the Republic Geodetic Authority (the “Authority”), which shall carry out a priority registration of the property (regardless of previous proceedings, without charging fees or conducting an administrative procedure) in the relevant records.
2. If the Agency determines that the conditions for the registration of ownership rights have not been met, it shall notify the applicant accordingly.
3. In the most extreme cases of illegal construction — specifically for the buildings referred to in Article 2, paragraph 1 (as detailed in the section “What Is the Subject of Registration”) — the Agency shall determine that the conditions for the registration of ownership rights have not been met and shall notify the Republic Property Directorate and the competent construction inspector, who may issue a decision ordering the removal of such structure. A pre-notation of ownership rights in favor of the Republic of Serbia shall be entered for such structure until the enforcement of the removal decision. No appeal or administrative dispute may be initiated against such confirmation of the Agency; however, a lawsuit may be filed before a court of general jurisdiction.
4. Issue a notice requiring the rectification of identified deficiencies, thereby instructing the applicant to remedy such deficiencies within 30 days. A similar possibility (to request the rectification of deficiencies) also exists during the procedure in which the Authority reviews the geodetic survey report. If the Authority determines that the report contains deficiencies, it may order the geodetic organization that prepared the report to correct the deficiencies within 8 days and submit the amended report to the Authority.
5. Reject the application where a building has been constructed on another person’s private land without legal grounds, or where multiple persons submit applications for the same building, and instruct the applicant to settle property relations with the landowner within a period of five years. In the event of failure to resolve the dispute, the landowner shall have the right to request the removal of the building.
6. Register temporary structures (such as mobile homes, containers, air domes, etc.) without registering ownership rights over them.

The Law further provides that in cases where the investor is unknown or unavailable, or where a legal entity that constructed the building or multiple buildings with special parts has ceased to exist without legal successors, and certain special parts of such buildings have not been subject to transfer, the Republic of Serbia shall be entered as the holder of ownership rights over such untransferred special parts of the building, based on a confirmation issued by the Agency.

3) What Are the Costs?

The amount of the fee is not prescribed as a uniform amount under the Law. Instead, the legislator has established a fixed fee range between EUR 100 and EUR 1,000, depending on the size of the city or municipality and the zone in which the respective property is located. The highest fees apply to real estate located in major cities and in their premium zones, while the lowest fees apply to smaller settlements (with fewer than 50,000 inhabitants). Conversely, for warehouses, storage facilities, auxiliary and economic buildings, and production facilities with an area of up to 500 m², no fee is payable. For such facilities exceeding 500 m², a fee in the amount of EUR 10 per square meter of surface area is prescribed. These fees apply only to family residential buildings and apartments, whereas for all other types of real estate, the fee is calculated in the amount of the land development contribution as determined by the relevant zoning plan. In any case, owners of family residential buildings or apartments who use such property for housing purposes, recipients of social welfare, persons with disabilities, war veterans, single parents, and families with three or more children are exempt from payment of the fee:

For buildings constructed under a temporary construction permit for which no occupancy permit has been issued, no registration fee shall be paid, provided that the owner submits proof that the land development fee or contribution was duly paid during the procedure for the issuance of the temporary and/or construction permit.

In situations where an entire building (with all of its special parts) has not been registered, the Law provides that the investor who constructed the building, if available and known, must submit an application for the registration of the building and bear the costs of such application in the amount of the land development contribution, which may represent a considerable sum. However, such fee shall not be charged to the investor if he provides proof that the contribution for land development was already paid during the procedure for the issuance of the temporary or construction permit.

The ownership rights to the special parts of such a building shall then be registered in favor of the owners of those special parts (i.e., apartment owners within the building) without any fee, once the registration of the building has been completed.

If the investor is not available or known, any interested party (such as tenants, purchasers of special parts, etc.) may submit an application for the registration of the building. Once the building has been registered, each holder of a special part of the property and/or the building manager (representative of the homeowners’ association) may submit a separate application to the Agency for the registration of the special parts (apartments), accompanied by a layout sketch of the special parts or a geodetic survey report, as well as the document evidencing legal title to the respective special part of the property.

4) Advantages and Shortcomings of the Law

The positive aspects of this Law have already been mentioned in the preceding text. However, it should once again be emphasized that the idea and objective of the Law are commendable. It is indeed necessary to find a legally sustainable solution for illegally constructed buildings and to integrate them into lawful channels, which would ultimately benefit society as a whole. The author also welcomes the legislator’s intention to put an end to further illegal construction — the solutions offered by the Law in this respect are, in the author’s opinion, appropriate and contribute to greater legal certainty.

On the other hand, although everything appears sound “on paper,” one cannot overlook the practical implementation of the Law and the concerns regarding the extremely short deadlines set for adaptation and execution — both for the public authorities that will directly apply the Law and issue decisions, and for all other entities that will be required to complete extensive documentation within very limited timeframes in order to submit their applications. Given the fact that there are currently approximately 4.8 million illegally constructed buildings in Serbia, it is reasonable to express doubt that the processing of submitted applications will require significantly more time than what the legislator has envisaged. The author is of the opinion that a decades-long problem such as illegal construction in Serbia cannot be resolved in a single move, particularly not within such a short period as prescribed by the Law. Both citizens and public authorities will require considerably more time and resources to prepare for and carry out the procedures prescribed.

Furthermore, as already noted, while the Law provides for the registration of illegally constructed buildings and their owners, it remains insufficiently defined with regard to safety and structural stability, as well as the procedures for verifying such safety. In the author’s opinion, further elaboration of the Law should focus on establishing mechanisms to ensure the maximum protection of safety and to prevent any potential damage arising from the use of unsafe structures.

Another very important aspect that cannot be ignored is that, by adopting the Law, certain categories of persons (specifically, those who constructed buildings illegally) are placed in a more favorable position compared to those who complied with the law during construction and duly bore all associated costs. Although the solution provided in the Law is likely the only feasible one under the circumstances, it nevertheless privileges a certain group of subjects. However, it must be acknowledged that illegal construction has been a systemic and long-standing issue in Serbia, for which there is no universally acceptable or perfectly equitable solution.

Finally, the author considers that the lack of legal remedies against the decisions of the Agency represents a shortcoming of the Law that should be addressed. Under the current provisions, no appeal may be lodged against the Agency’s decisions, and the only available option is to initiate a judicial proceeding. Considering the average duration of court proceedings in Serbia (approximately five years), such a solution may create a serious obstacle for all interested parties seeking timely and effective legal protection.

5) Conclusion

In conclusion, it is noted that there is a need for further elaboration of the Law through the adoption of by-laws and implementing regulations, which would serve to clarify and refine certain procedural aspects that, as of the date of preparation of this text, have not yet been enacted.

In any event, the Law is highly complex and difficult to interpret, not only for legal professionals such as attorneys but even more so for persons without legal expertise. Therefore, the author strongly recommends that all interested parties seek professional assistance — from attorneys, licensed surveyors, or other qualified experts — prior to initiating any procedure under this Law, in order to ensure proper understanding and compliance.