Agreement for the establishment of building rights

A land lease agreement is concluded in cases when real estate is leased to a building where there are no buildings or structures. In cases where the land belongs to one party and the building or structure to the other party, an agreement for the establishment of building rights shall be entered.

With this Agreement, the owner of the land plot for a fee grants the building owner the right to build and use the building on the land plot as the owner during the term of this agreement.

The most important things that should be indicated in the agreement on the establishment of building rights:

• The area in which the land plot is transferred for construction.
• The procedure by which the contract is registered in the Land Register and who prepares all the necessary documentation (a statement from the local government regarding the type of use, etc.).
• The amount of the fee (EUR) for the building right (with or without VAT) and the payment term.
• The contract must specify what happens to the building after the end of the building right (it must be demolished, removed, or transferred to the owner of the land without compensation). Removal usually means the removal of a building or structure from the land, where this is possible without damaging it (structures without foundations, container-type structures).

DSSLegal will provide you with legal support for the preparation of the contract, so that your transaction will proceed without unnecessary complications.