OWNERSHIP ISSUES

The City of Kraljevo as the owner of newly built apartments will conclude contracts with the homeowners on the property exchange on ‘unit-for-unit’ compensation principle (m² of net usage area per m² net usage area).

The exchange of apartments will be conducted in accordance with ownership and legal status determined for all cases on the site. The apartments will be considered for exchange only after the registration – entering the property in cadastre is completed.

Determination of ownership status and tenancy rights must be completed during the Preparatory Phase of the Project. Final beneficiaries are responsible for the timely preparation of all necessary documents related to the ownership status of dwellings. The City Authority and PMU will assist homeowners with registration of ownership over existing dwellings.

Homeowners, who make the majority in the settlement, will receive new apartments by conclusion of contracts on the property exchange on a compensation principle, while those with tenancy right will retain their status in new apartments under non-profit rent.

Considering the obligation to build new dwellings in line with the current legislative, the estimated usage area will be to some extent larger than the usage area of the existing apartments. Owners of old (existing) apartments obtain the right to purchase or lease with the possibility of subsequent purchase of excess area of the new over the old apartment.

The contracts will stipulate details such as modes of repaying excess area in the new apartments, rent amount in cases of co-ownership, obligations related to resettlement, operations and maintenance.

Purchase of excess area will be provided by subsidized price in instalments over a period not longer than 20 years in the form of mortgage loan, without interest, with the calculation of the minimum of the financial administration costs.

Monthly rent of excess area will be provided per non-profit prices determined in accordance with current regulations.

Homeowners and tenants of old/existing apartments will be timely informed about all options, rights and obligations.