2023-05-02 14:04:17
After several years of discussions, how to solve the problem of forced divided property, when the land belongs to one owner and the buildings to another, on January 1, 2022, the so-called forced rent payment or land use fee of 4% of the cadastral value of the land came into force. The legal usage fee is 4% per year of the cadastral value of the land in use. If 4% per year is less than 50 euros, the usage fee is 50 euros per year. The minimum usage fee – 50 euros per year – does not have to be multiplied by the number of co-owners of the land or building.
Legal land use rights come into effect in three stages, depending on the situation. On January 1, 2022, the regulation enters into force in all cases of shared property, in which the forced lease relationship is not regulated by a valid contract or court ruling at the relevant moment.
On January 1, 2023, the regulation comes into force in all cases of shared property, in which forced lease relationships are regulated by a valid lease agreement or court ruling on January 1, 2022. On January 1, 2024, the regulation enters into force in cases of shared ownership, in which buildings belonging to a private person are located on the land of a public person.
Nine cases were initiated in the court following the applications of several individuals, which were combined into one case. The applicants own the land or supposed parts of the land, on which there are structures belonging to other persons.
The applicants expressed the position that the institute of land use rights and the amount of the land use fee do not comply with the right to property, the principle of equality, the principle of protection of legal trust, as well as the right to a fair trial.
On the other hand, in the opinion of the Saeima, the land use fee is a fair compensation, as the legal relations of the persons involved in shared ownership have been simplified.
ST ruled that the land use rights regulated in the disputed norms can be recognized as conforming to the Constitution, because such regulation not only ensures the protection of the rights and legal interests of the participants in the legal relations of shared property, but also introduces clarity and predictability in the real estate market.
On the other hand, the court found the land use fee in the amount of four percent set in the disputed norms to be inconsistent with the Constitution, because when setting this fee and the remuneration included in it to the landowner in the amount of 2.5% of the cadastral value of the land in use, the legislator did not justify that expenses that reduces the land owner’s income from the land put into use.
The court recognized that there was an alternative remedy that would limit the landowner’s rights less.
The norms inconsistent with the Constitution were recognized as invalid from July 1, 2024, giving the legislator time to fairly balance the rights of land owners and building owners.
On the other hand, with regard to the norm, which determined that previously adopted decisions of courts of general jurisdiction on forced lease legal relations are not valid as of January 1, 2023, the Supreme Court terminated the proceedings.
The court also terminated the proceedings in the case regarding the compliance of the contested norms with the principle of legal equality contained in the Constitution.
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