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Nullity of the real-estate purchase agreement under when real-estate is built illegally

13. March, 2019No Comments

Nullity of the real-estate purchase agreement under when real-estate is built illegally

The third paragraph of Article 93 of the Building Act provides (to put it simply) that permits, registrations or legal transactions that allow the sale of the land on which the illegal building stands are null and void. Due to this provision, the idea spread that each legal transaction involving an illegal building is null and void or impossible for the parties to carry out.
Considering the previously mentioned fact that prior to the conclusion of the legal transaction the notary public only has an obligation to verify the situation in the land register (see the October issue), the prohibition to authenticate the agreements or to conclude the purchase agreement for the third parties (for example, buyers of the real-estate) does not produce effects until the inspection notice is entered in the land register. This means that Article 93 of the Building Act lays down prohibition against entering into various agreements for a real-estate only if the inspectorate has already requested the notice of an illegal building to be entered in the land register. If no such notice exists there is no basis to hinder the sale of the real-estate. 
It is true that potential buyers have to take into consideration a possibility that an inspector might at a later time issue a decision, in which he or she will declare illegality of a building; however, this can only be taken into account to lower the purchase price, but not to hinder the sale of this real-estate.