DIRECT SALE OF REAL ESTATE BY THE MUNICIPALITY

#58Direct sale of real estate by the municipality

The management and management of the property of the municipality is regulated by legal regulations of the Slovak Republic. A brief regulation is provided by in Act No. 369/1990 Coll. on municipal establishment (hereinafter referred to as the “Law on municipal establishment”), a more detailed regulation is defined by special Act no. 138/1991 Coll. on municipal property (hereinafter referred to as the “Municipal property Act”) and the specific conditions of a specific municipality is left to the municipal council, which determines the so-called Principles of management of municipal property.

In the Municipal property Act, we distinguish three ways in which municipal property can be transferred, which are based on a public tender, voluntary auction or direct sale. The choice of one of said methods is left to the municipality. Approval of the given method, in the case of real estate, falls under the jurisdiction of the municipal council. In this case, we will deal with direct sales by the municipality. 

Because the municipality´s information obligation, the municipality is at least obliged to publish its intention to sell the property for a period of 15 days, namely on its official notice board, the municipality's website, if it has one, and in the regional press. Furthermore, there is an obligation to publish the deadline in which interested parties can publish their price offers. 

The municipal council approves the transfer by means of a resolution, and subsequently also the transfer of the property of the municipality itself, realized by direct sale. Although the specific contract between a municipality and a natural or legal person is not being approved, the transfer has to be approves by the resolution of the municipal council, and it must state what is its subject, in whose favor is it approved and at what price. The marking of the property is the same as required by Section 42 of Act No. 162/1995 Coll. On the real estate cadaster and on the registration of ownership and other rights to real estate. 

The petition to insert ownership rights has to contain the following attachments:

1. resolution of the municipal council on approval of the method of transfer of ownership of immovable property of the municipality,
2. expert opinion to determine the general value of the property,
3. resolution of the municipal council approving the transfer of ownership of immovable property of the municipality, and
4. statement of the mayor of the village that the buyer is not a close person.

Act no. 211/2000 Coll. On free access to information stipulates that the contract concluded by the obligated person and related to the obligation with the property of the municipality must be published.