On 8 January, the new urban licensing simplex was adopted. We break down the sensational news Law 10/2024, which should trigger an influx of properties onto the market through the conversion of commercial real estate into residential, the abolition of licences, and the simplification of municipal licensing.
Most of the 26 measures simplifying municipal licensing come into force on 4 March, but some already entered into force on 1 January. This is the case with the measure that hindered the purchase of homes. Upon concluding a property purchase agreement no longer required to show or prove availability of a residential property technical passport and a permit for use. This measure will allow thousands of homes to enter the housing market, as the country has a massive number of unlicensed properties that were built illegally and have never been legalised, either fully or partially.
The new scenario will require more attention from the buyer. Buying an illegal house (or one with unauthorised works) in itself is not so scary; the main risk is that the house could be partially or completely demolished if there are complaints from neighbours or if an inspection is carried out by local authorities. Another risk is buying a house that does not meet construction and safety standards. And finally, a bank will not grant a mortgage for a property without a licence.
Generally speaking, the fact that a housing licence is no longer required by law does not mean that the buyer cannot demand it from the seller. In fact, it is normal for the buyer to continue requesting such protection if it is required.
Next. New law, Simplex, simplifies the conversion of commercial real estate into residential property. This will be possible from 4 March without the consent of the condominium. Therefore, anyone who has a shop on the ground floor – which is quite common – and who wants to convert it into housing no longer has to ask permission from all the building's neighbours and can go straight to the municipality. And this will make it possible to bring onto the market hundreds of properties that were useless and lying vacant, especially in large cities.
Another new feature of the simplex is the creation electronic platform for urban procedures, which standardises the work of municipalities. That means they will all operate in the same way, rather than as they do now. The platform will make it possible to submit requests online, and to check the status of processes and deadlines. From January 2026, it will be possible to submit information requests with automatic verification of compliance with applicable plans.
Another change in licensing is the accountability of project architects, and simplification of the permit issuance process for the use of real estate properties. The municipality now has a 20-day period to provide comments on the project. And if there are no objections, then the property becomes habitable.
Well, we hope these measures will increase the number of offers on the market and make it easier for us to work with the municipalities.
