2022-10-03-德勤-Deloitte_Legal_Handbook_for_Real_Estate_Transactions_227页_31mb

Summary of the Deloitte Legal Handbook for Real Estate Transactions

Core Content

The Deloitte Legal Handbook for Real Estate Transactions, now in its third edition, provides a comprehensive overview of real estate regulations across 29 countries, with a detailed focus on Albania and Argentina. The handbook addresses the evolving landscape of real estate transactions, including the impact of hybrid working policies, increased demand for residential properties with outdoor space, and the energy crisis, among other global challenges. It emphasizes the importance of ESG (Environmental, Social, and Governance) considerations in investment decisions.

Main Views and Key Information

Albania

• Real Estate Development Trends:

  • There has been significant development in stadiums, such as Arena Kombëtare and Elbasan Arena.
  • Large multi-purpose buildings are being developed in Tirana, including "Downtown One Tirana" and "Eyes of Tirana".
  • Residential developments are ongoing in major cities like Durrës and Shkodra.
  • Seaside investments have increased in southern Albania.

• Legal Framework:

  • The Constitution of Albania guarantees private property rights.
  • Property can be acquired through purchase, donation, inheritance, adverse possession, or expropriation.
  • The Law on Cadaster establishes the National Cadaster Agency and the Cadaster Register, which records ownership and rights over real estate.

• Acquisition Structure:

  • The most common form of acquisition is through a sale purchase agreement (SPA) registered with the State Cadaster Agency (SCA).
  • Foreign individuals and entities can acquire residential and commercial units but face restrictions on purchasing agricultural land, forests, and certain protected areas.
  • A minimum investment threshold of three times the land value is required for foreign acquisition of land.

• Real Estate Registry System:

  • Ownership and rights are registered with the Cadaster Register, accessible by notaries, state authorities, and courts.
  • Transactions must be registered with the SCA within 30 days; failure to do so may result in penalties.
  • Registration is not a prerequisite for the validity of legal actions but is essential for legal certainty.

• Notary Role:

  • Notaries are responsible for verifying ownership titles and registering transactions with the SCA.
  • They must electronically declare real estate acts and provide written copies within 10 days.
  • Notaries also assist in the registration process, charging service fees in addition to public notary fees.

• Seller Legal Responsibility:

  • Sellers must guarantee full and absolute ownership and freedom from encumbrances.
  • Buyers can oppose defects within five years of handover.
  • Price adjustments are possible if the effective size of the property differs from the declared size by more than one-twentieth.

• Mortgages and Guarantees:

  • Mortgages are the most common form of security for immovable property.
  • Pledges and securing charges are also used, with securing charges requiring registration with the Securing Charges Registry.
  • Personal or real guarantees are often used in real estate financing.

• Lease Agreements:

  • The Civil Code defines lease agreements as temporary enjoyment of property for a certain remuneration.
  • There is no distinction between commercial and residential leases, except for agricultural land.
  • Lease agreements over nine years require a notarial deed and SCA registration.

• Administrative Permits:

  • Three types of permits are required for construction or restructuring: development permit, construction permit, and preliminary declaration.
  • Environmental impact assessments and environmental permits are mandatory for certain projects.
  • Energy performance certification is required for buildings being sold, leased, or renovated.

• Direct Taxes:

  • Individuals pay personal income tax at 15% on capital gains.
  • Legal entities pay a local transfer tax based on property type and location, plus corporate income tax.

Argentina

• Emerging Opportunities:

  • Construction costs in USD have reached their lowest since 2015, making early-stage developments more attractive.
  • Real estate is considered a safe investment in a volatile economic environment.
  • Rental prices in CABA are increasingly in USD, offering stable cash flow.
  • The market is experiencing a rise in foreign investment, particularly in "Argentine Brick" (residential and commercial real estate).

• New Asset Classes:

  • Agricultural Real Estate:
    • Prices have risen due to increased demand and reduced Ukrainian influence.
    • Core zones like Buenos Aires, Santa Fe, and Córdoba have land prices ranging from USD 13,500 to USD 15,000 per hectare.
  • Corporate Real Estate:
    • Demand for improved office spaces has increased due to post-pandemic focus on employee wellbeing.
    • Average square meters per employee have risen from 8m² to 12m².
  • Residential Real Estate:
    • There is a shift towards larger homes with more amenities and green spaces.
    • This trend reflects the change in lifestyle preferences post-pandemic.

Key Contacts

• Erlind Kodhelaj

  • Deloitte Legal, Albania and Kosovo
  • Email: ekodhelaj@deloittece.com
  • Experience: Over 14 years in real estate transactions, civil and administrative litigation, corporate and competition law.

• Zhuljeta Mena

  • Deloitte Legal, Albania and Kosovo
  • Email: zmena@deloittece.com
  • Experience: Involvement in major projects, legal advice for leading corporations.

Conclusion

The handbook serves as a vital resource for understanding the legal and regulatory landscape of real estate transactions across multiple jurisdictions. It highlights the importance of ESG considerations, the role of notaries, and the evolving market dynamics, particularly in the context of global economic challenges. It also emphasizes the need for compliance with administrative and environmental regulations, as well as the tax implications of real estate transactions.