A permit or excavation does not necessarily exercise a building right. Check the original grant, structural completion and later transfers.
A right to construct and own a building on another person's land may expire in the landowner's favour if not exercised within the five-year period under Article 67 of the Ownership Act. A permit or excavation is not sufficient by itself. This concerns the property right, separately from the developer's contractual delay.
For the situation involving a single grant covering units in a building, Interpretative Decision No. 1/2011 links exercise to structural-shell completion of the building or authorised phase. Construction of one apartment within an unfinished building should not automatically be treated as sufficient.
The decision identifies commencement when the granting contract takes effect, regardless of subsequent transfers. It also addresses special situations: bad-faith obstruction by the landowner and individually granted rights dependent on another unit being built. Simply counting five calendar years is therefore inadequate.
Before purchase, trace the original grant, its conditions and construction evidence. The validity period of a construction permit is a different issue from expiry of the property right.
Discuss your circumstances with a lawyer. Leave a phone number or email, or call us directly.
This article is for general information only. It does not constitute or replace individual legal advice.