The Law on conversion in force as of July 28, 2015
The Republic National Assembly adopted the new “Law on conversion of the right of usage into ownership right on the construction land with compensation“ (the “Law”) which sets out the procedure for converting the right of use into ownership rights over construction land for a fee (the “Conversion”) that will come into force on July 28, 2015.
The Law introduces changes for the Conversion procedure and specifies the particular list of entities that are eligible to file an application for the Conversion. The entities that can file an application for the Conversion procedure are: privatized legal entities and their legal successors; entities - use right title holders of undeveloped construction land acquired pursuant to the construction land laws that were applicable before 13 May of 2003; sporting and other associations; public enterprises and persons to which bilateral international treaties on succession are applicable.
Additionally, entities interested in construction development shall have two choices in the future, either to undergo the Construction procedure or to lease the construction land over which they have a right of use.