As of 1 January 2014, the construction right was introduced as one of the legal titles for establishing a construction on a land owned by another person. The new Civil Code deals with the construction right in Sections 1240 – 1256. The construction right is a property right, but it can be established only for a limited time period not longer than 99 years.
What can be the construction right, with respect to its temporality, practically used for? The construction right shall be obviously a suitable solution for constructions which lifetime is limited due to the technology used (e.g. solar and wind energy plants). Although the concept of the construction right is primarily meant for temporary constructions, in practice, it can be used due to various reasons for constructions with longer lifetime. The construction right may be prolonged but only with the consent of the land owner and other persons who have any right to the respective piece of land and whose right is registered with the cadaster.
The legal position of the holder of the construction right is comparable to one of the owner of a construction placed on a piece of land owned by another person with an easement right for a definite time. The new Civil Code stipulates that the construction right is an immovable asset (and the construction itself is an integral part of the construction right); the holder of the construction right shall have the same rights as the owner. The construction right shall be registered with the cadaster, shall be transferrable and may be subject to liens and inheritance. Both the beneficiary from the construction right and the owner of the land shall have mutual pre-emptive right, which may be cancelled by agreement of both parties and upon the subsequent registration of such agreement in the cadaster. The construction right shall relate only to a piece of land, i.e. it is not possible to arrange for construction right relating to a building, e.g. for constructing another floor to an existing building.
The construction right may be established either for free, or for one-off payment or for regular payments. After the expiration of the construction right, the owner of the land becomes also owner of the construction and shall reimburse the former holder of the construction right half of the amount of the construction value at the moment of cession of the construction right. A different way of reimbursement is possible based on agreement between the parties.