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I. GENERAL PROVISIONS
This Law shall regulate conditions and method of sale of apartments with occupancy right together with the common parts and facilities of the building, as well as the method of determining the price of the apartment and cessation of occupancy right.
Apartment and auxiliary premises shall be understood to mean premises or a set of premises as defined by provisions of the Law on Housing Relations ("Official Gazette of SR BiH" No: 14/84, 12/87 and 13/89 - hereinafter: the Law on Housing Relations).
An apartment shall be purchased with the common parts and facilities of the building which serve to the building as a whole, together with the land under the building. Common parts and facilities of the building are defined by provisions of the Law on Housing Relations. Premises with occupancy right which are not considered as an apartment may also be subject to sale, if it is prescribed by regulations that they may be subject to transactions. A garage shall also be subject to sale, if it makes a building unit with the apartment or if it was given to the occupant for use as an integral part of the apartment.
For the purposes of this Law, the following shall not be considered as an apartment:
Provisions of this Law shall not be applied to sale of apartments:
Apartments owned by legal entities whose seats are in the territory of the Federation of Bosnia and Herzegovina (hereinafter: the Federation), and which are located in the territory of the states formed after the dissolution of the former SFRY, shall be sold in the manner regulated in the respective state and under conditions of reciprocity, unless otherwise regulated by an inter-state agreement. A foreign citizen, under conditions stipulated by this Law, may purchase an apartment only if a citizen of Bosnia and Herzegovina is entitled to purchase an apartment in the respective state.
II. RIGHT TO BUY APARTMENT
Any holder of occupancy right, except in the case referred to in Article 5 of this Law, may submit a written request for buying an apartment to the holder of the right to dispose with the apartment (hereinafter: the seller) and the seller shall be obliged to sell it. Request from paragraph 1 of this Article shall be submitted within two years from the day of the application of this Law, and contract on sale of the apartment (hereinafter: the contract) must be concluded within three months from the day the request for buying apartment has been submitted. If the seller does not conclude the contract upon the request of the holder of occupancy right who wants to purchase the apartment within the deadline referred to in paragraph 2 of this Article, the buyer shall have the right to initiate judicial proceedings. The court ruling shall replace the contract in its entirety. As an exception, the term for the conclusion of the contract concerning an apartment for which all facts relevant for the sale of the apartment were not established at the time the request for purchasing the apartment had to be submitted, shall be counted from the day of the establishment of these facts. Facts relevant for the sale of an apartment shall be evaluated at the time of the conclusion of the contract.
Occupancy right holder shall be considered to be the person to whom the apartment was allocated for use by the owner i.e. the allocation right holder of the apartment, and who had signed the contract on the use of the apartment or the person to whom the apartment was allocated by final and binding judicial decision, as well as the person to whom this right was recognised by the act of a competent body in accordance with the Law on Housing Relations. Article 8a The occupancy right holder over an apartment which was proclaimed as abandoned by special regulations applied at the territory of Federation Bosnia and Herzegovina during the period of 30 April 1991 to 4 April 1998, shall acquire the right to purchase the apartment in compliance with the provisions of this Law upon expiry of two year deadline after his/her reinstatement in the apartment. In the decision-making procedure related to the claim for purchase of the apartment, the owner of the apartment shall be obliged to establish, on the basis of available documentation, whether the claimant is the occupancy right holder referred to in paragraph 1of this Article. A contract on sale of the apartment concluded in contravention of the provisions in paragraph 1 of this Article shall be null and void. The occupancy right holder referred to in paragraph 1 of this Article may submit a claim for purchase of the apartment in accordance with Article 7, paragraph 1 of this Law, within a six months deadline of a day on which he acquired the right to purchase the apartment.
Under conditions prescribed by this Law, the members of the close family household of the occupancy right holder may also buy an apartment, with the approval of or in case of death of the occupancy right holder. Members of the close family household of the occupancy right holder shall be considered to be the persons referred to in the Law on Housing Relations.
Under conditions prescribed by this Law the occupancy right holder, his/her spouse or a member of his/her close family household may purchase only one apartment. Any contract concluded in violation of provision referred to in paragraph 1 of this Article shall be null and void.
Spouses may buy an apartment together, and one of them may buy it only with the approval of the other one. If co-tenants have the occupancy rights on one apartment, they shall buy the apartment together each the part on which he/she has the occupancy right, unless they agree otherwise. As an exception from paragraph 2 of this Article, if one or more co-tenants do not submit the request for buying their parts of the apartment within the deadline referred to in Article 7 of this Law, other co-tenants shall have the right to buy the apartment. Approval and agreement referred to in paragraphs 1 and 2 of this Article shall be given in the contract or in a separate document with certified signature. In case the approval is not given, or the agreement is not reached, the decision shall be made in the judicial proceedings.
Apartments shall be sold by the seller from Article 7 ( 1 ) of this Law.
Apartments whose seller is unknown shall be sold by the municipality.
For the purposes of this Law, an apartment whose seller is unknown shall be understood to mean an apartment whose holder of the right of disposal is a legal entity which did not register its activities according to the current regulations, or which ceased to operate and its legal successor is unknown or not determined, or whose seat is unknown, and the occupancy right holder is not able to file the request for buying the apartment within the deadline prescribed by Article 7 (2) of this Law. In case referred to in paragraph 1 of this Article the occupancy right holder shall submit the request to the competent service of the municipality in which the apartment is located. After having completed the required procedure, the competent service of the municipality shall allow the occupancy right holder who fulfils the conditions prescribed by this Law to purchase the apartment, and shall conclude the contract within the deadline referred to in Article 7 of this Law.
Apartments whose holders of the right of disposal were the former JNA and the SSNO (Federal Secretariat of National Defence) shall be sold by the Federation Ministry of Defence, in accordance with this Law. An organisational unit of the Federation Ministry of Defence on the municipal level shall sell the apartments from paragraph 1 of this Article which are on the territory within its jurisdiction. Apartments whose holders of the right of disposal were the bodies and organisations of former SFRY, with the exception of paragraphs 1 and 2 of this Article, shall be sold by the Cantonal Government on the territory of which the apartment is located. Apartments which are owned by the bodies and organisations of Bosnia and Herzegovina shall be sold by the Government of the Federation of Bosnia and Herzegovina.
III. PRICE OF AN APARTMENT
The price of an apartment shall be defined by contract, depending on:
The price of the apartment shall be fixed on the basis of the value of the apartment as defined by Articles 18 to 21 of this Law and reductions as defined by Articles 21 to 24 of this Law, and shall be calculated in DM.
The value of the apartment shall consist of the construction value of the apartment, corrected by apartment's location coefficient. The construction value of an apartment shall be 600 DM per m2. Apartment's location coefficient shall be established by the competent Cantonal Government within the range from 0.80 to 1.20 depending the on area of the settlement where the apartment is located, infrastructure support to the settlement, floor and other relevant facts.
Upon the request of the purchaser, the value of the apartment shall be reduced by the amount of personal funds invested or which need to be invested in the apartment by the purchaser, as follows:
The amount of invested funds shall be defined on the basis of documentation or the estimate of the expert witness of civil engineering profession.
The amount of invested or needed funds from paragraph l, line 3 of this Article shall be recognised to the purchaser in the amount not exceeding 30 % of the construction value. The value of an apartment defined on the basis of Articles 18 and 19 of this Law shall be reduced on the basis of depreciation at the rate of 1 % per year, and not more than up to 60 %. The price of garage shall be defined in the manner from paragraph 1 of this Article, provided that the purchaser does not have the right to reductions, and that he shall be obliged to pay the price of garage in full even in case when the apartment is paid by instalments. The purchaser shall be given a personal reduction of price of the apartment determined in accordance with Article 20 of this Law, in the amount of 1 % per full year of service with domestic legal or physical persons, including years of service with legal and physical persons from the area of SFRY until 06 April 1992. Reduction based on years of service of spouses defined in paragraph 1 of this Article shall be calculated cumulatively and up to 75 %. The beneficiary of family pension who is a purchaser, shall also be recognised a reduction of price of the apartment based on the years of service of the deceased holder of occupancy right. The purchaser of an apartment shall be recognised a reduction of price of the apartment determined in accordance with Article 21 of this Law, as follows: Purchasers of apartments who are war victims shall be entitled to a special reduction of the value of the apartment determined in accordance with Articles 19 to 22 of this Law, as follows: Military and civil war invalids of certain categories from this Article shall be considered persons to who that property is recognised on the basis of a separate law. War invalids and other invalids who do not belong to the category of invalids defined in paragraphs I-4 of this Article shall be entitled to a discount in the amount of an appropriate category of invalidity from this Article deduced by 20%.
IV. FUNDS AND WAYS OF PAYING THE PRICE OF APARTMENTPayment of purchase price of the apartment shall be done by one of the means of payment, as follows:
In case of cash payment, the price of an apartment shall be reduced by 20% of the determined purchase price. Cash payment of the price of the apartment may be agreed to be in full or by instalments, according to the choice of purchaser. If the payment is agreed to be in full, the payment deadline may not be longer than 30 days from the day of entering into the contract. The deadline for payment by instalments may not exceed 25 years, and shall be paid in 25 equal annual instalments with 1% annual interest. The Cantonal Government may prescribe a shorter period for payment by instalments, with a smaller interest rate.
If a buyer, after a certain number of instalment payment of the apartment price, settles for cash payment, the price he pays is decreased for interest rate that is accounted at the rate of 2% a year on instalments paid in advance, from Article 26 of this Law, calculated according to the method of interest calculations for a consumption loan.
V. REGISTRATION OF APARTMENT OWNERSHIP RIGHTS
The ownership right to an apartment shall be acquired upon the registration in the Land Register. If the purchaser contracted the payment in instalments the right to register the ownership in the Land Register shall be acquired upon the day of the payment of the first instalment, provided that the apartment may not be sold or disposed of in legal transactions with living persons until the day of the payment of the last instalment. If a real property is not registered in the Land Register, the ownership right to the apartment shall be acquired upon submission of the contract to the Land Registry Service of the Court in whose jurisdiction the apartment is located and upon the registration in the record of submitted contracts held in the Court. The way of setting up and keeping the submitted contracts record shall be regulated by a separate cantonal regulation. When the apartment is used by the families of dead soldiers, disabled war veterans, demobilised soldiers and expelled persons on the basis of a legal title, the purchaser of the apartment may establish a lease relation with that person, under conditions prescribed by a separate law regulating the lease of apartments. The lease relation from paragraph 1 of this Article may not last longer than 3 years. The seller shall be obliged to submit for approval the contract on the sale of the apartment to the competent Public Attorney within 30 days from the day of entering into the contract. If the Public Attorney finds that the agreed price of the apartment was not determined in accordance with the provisions of this Law, he/she shall invite the parties to amend the contract and thus bring the apartment price into compliance with the provisions of this law within 30 days from the day of receipt of the contract. If the parties fail to comply, the Public Attorney shall file an action for the cancellation of the contract within 60 days from the day of the submission of the contract. The contracting parties shall be obliged to certify their signatures. The body competent for the certification of signatures shall certify the signatures of the parties upon the finding that the contract was submitted for approval to the competent Attorney General, which is to be confirmed on the back of the contract. The contract on the sale of the apartment by instalment payments must contain the purchaser's statement authorising the registration of mortgage on the purchased apartment on behalf of the seller, in the amount of the price and interest. The mortgage shall become valid upon the registration in the Land Register. In the area for which land records are not kept the mortgage shall become valid upon the registration in the Book of Title Deeds or other book in which the mortgage on real property is registered. When the court receives the request for registration, i.e. the registration of apartment ownership, it shall register ex officio the mortgage on behalf of the seller in the full amount of the price and interest. Occupancy right of the apartment of the holder thereof shall terminate on the day of entering into the apartment sales contract. Contract on the sale of the apartment concluded under the conditions prescribed by this law shall not be subject to sales taxation.
VI. THE MANNER OF DISTRIBUTION OF FUNDSIncome realised from the sale of apartments referred to in Article 13 of this Law shall be included in the municipal budget. Income realised from the sale of apartments referred to in Article 15 of this Law shall be allocated as follows: Income realised from the sale of apartments referred to in Article 12 of this Law shall be allocated as follows:
Income realised from the sale of apartments referred to in paragraph 1, line I, of this Article shall be used by the enterprise for the given purposes until the day of approval of the privatisation programme by the competent privatisation agency. Once the privatisation programme is approved to the enterprise, further instalment payments collected from the sale of apartments referred to in paragraph 1, line 1, of this Article shall be paid into the budget of the municipality and the town on the territory of which the apartment is located and shall be used for the development of the communal infrastructure. Entities realising income from the sale of apartments in accordance with Articles 36, 37 and 38 of this Law, shall allocate 70% of income to the cantonal fund for construction of apartments for family members of killed soldiers, disabled war veterans, demobilised soldiers and expelled persons. The rights and liabilities of the cantonal funds for building the apartments will be determined by separate cantonal regulations. When concluding a contract on the sale of apartments under provisions of this Law, an occupancy right holder who concluded a contract on the purchase of the apartment on the basis of the Law on Security in JNA and the Law on Amendments to the Law on Rights and Obligations of the Federal Bodies Regarding Socially Owned Assets Used by Them ( Official Gazette of the SFRY, No 84/90 ) shall be recognised the amount paid, calculated in DEM at the exchange rates valid on the day of the payment.
If the occupancy right holder of an apartment at the disposal of the Federation Ministry of Defence uses the apartment legally and s/he entered into a legally binding contract on purchase of the apartment with the SSNO before 6 April 1992 in accordance with the Law referred to in Article 39 of this Law, the Federation Ministry of Defence shall issue an order for the registration of the occupancy right holder as the owner of the apartment with the responsible court. Article 39b In the event that the occupancy right holder referred to in Article 39a of this Law did not effect the payment of the total amount of the sale price of the apartment in accordance with the sale contract, s/he shall pay the reminder of the amount specified in that contract to the Ministry of Defence of the Federation. If the contract provided for the payment of the sale price in instalments, an annex to the contract shall be made regulating the payment of the remaining instalments and the creation and registration of a mortgage in accordance with this Law. The provisions of Articles 39a of this Law and paragraph 1 and 2 of this Article shall also be applied to contracts on the purchase of apartments concluded before 6 April 1992, in cases where the verification of signatures has not been done before the responsible court. Article 39c The provisions of Articles 39a and 39b shall also be applicable to an occupancy right holder who has exercised the right to repossess the apartment pursuant to the provisions of the Law on the Cessation of Application of the Law on Abandoned Apartments ("Official Gazette of the FbiH", 11/98 and 18/99). Article 39d Person who does not realise his/her right under this Law with the Federation Ministry of Defence, may initiate a proceedings before the responsible court. Article 39e The occupancy right holder who is not entitled to the repossession of the apartment or does not submit a claim for the repossession of the apartment in accordance with the provisions of Article 3 and 3a of the Law on the Cessation of Application of the Law on Abandoned Apartments and who entered into a legally binding contract on the purchase of apartment with the SSNO before 6 April 1992, shall have the right to submit a request to the Federation Ministry of Defence for compensation of the funds paid on that basis, unless it is proved that these funds were acknowledged for purchase of an apartment outside the territory of Bosnia and Herzegovina.
VII. SPECIAL PROVISIONSLegal status of apartments which are under construction and the manner of their privatisation shall be regulated by a special regulation to be passed by the competent Cantonal body. For the purposes of this Law, the apartment under construction shall be understood to mean every newly built apartment on which a technical inspection has not been done and a positive statement on use of the apartment has not been given. When passing this regulation, the competent Cantonal body shall consider the rights of an investor (contractor), level of construction, as well as other circumstances relevant for a fair solution. Upon a request of the seller or the purchaser, the responsible body which keeps the records on apartments shall be obliged to provide access to data relevant for the sale of the apartment. Maintenance of common parts of the building in which the apartments have been sold, as well as renting of the apartments for which the holders of the occupancy right have not submitted a request for sale, shall be regulated by a special Cantonal regulation.
VIII. PENALTY PROVISIONSLegal entity - the seller of the apartment shall be fined for an offence by the amount from 1.000 KM to 10.000 KM : A responsible person within the competent body which keeps the record on apartments shall be fmed for an offence by the amount from 500 KM to 1.000 KM if he does not act in accordance with provisions of Article 41 of this Law. Until the KM becomes operational, the fines foreseen in Articles 43 and 44 of this Law may be paid in DM or the same amount denominated in other currencies used in payment operations in the Federation of Bosnia and Herzegovina, at the average rate published by the competent financial institution on the date of payment.
IX. FINAL AND INTERIM PROVISIONSContracts on the use of apartment which were concluded under the Law on Housing Relations by the day of the entry into force of this Law, shall cease to be valid at latest within three years from the date of the entry into force of this Law. Persons who acquired the occupancy right or the legal title to lawfully occupy the apartment in accordance with provisions of the Law on Housing Relations, by the expiry of the deadline referred to in Article 50 of this Law, shall have the right to purchase the apartment in accordance with the provisions of this Law. Provisions of this Law shall not be applied to the sale of privately owned apartments which have not been subject to nationalisation, on which the occupancy right has been acquired. Sale of apartments which are subject to restitution shall be regulated by a separate regulation on restitution. The residential building and apartments in the building which have been damaged during the war can not be subject to sale, if they do not provide permanent ftness, usability and safety of all basic parts of the building as a whole which are being used by all users of the building. After having concluded the required procedure, the fitness of the building referred to in paragraph 1 of this Article, shall be determined by the administrative municipal body responsible for urban planing and civil engineering affairs. Cantonal Governments shall pass regulations referred to in Articles 18, 26 and 27 of this Law within 15 days from the date of the entry into force of this Law. Cantonal Assemblies shall pass regulations referred to in Articles 40 and 42 of this Law within two years from the date of the entry into force of this Law. This Law shall enter into force on the eight day of its publishing in the "Official Gazette of the Federation of Bosnia and Herzegovina" and shall be applied upon the expiration of 90 days after its entry into force.
THE SPOKESMAN OF THE
THE SPOKESMAN OF THE
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