EXPROPRIATION ACT ("Off. Herald of RS", No. 53/95, "Off. Gazette of FRY", No. 16/2001 - decision of FCC and "Off. Herald of RS", Nos. 20/2009, 55/2013 - decision of CC and 106/2016 - authentic interpretation)

 

I BASIC PROVISIONS

Article 1***

Real estate may be expropriated or its title may be restricted only in the public interest determined on the basis of law, against compensation which may not be lower than the market price.

Article 2

The public interest for expropriation of real estate is determined by law or a decision of the Government rendered in conformity with this Act.

Article 3

For the purposes of this Act, real estate is understood to mean land, buildings and other structures.

Article 4

The owner of expropriated real estate is changed on the day of finality of the expropriation order (complete expropriation).

Article 5***

Expropriation may also establish an easement on real estate or lease of land for a definite period of time (incomplete expropriation).

A lease may be established only in case when, in view of the purpose for which the lease is suggested, the land will be used over a limited period of time, not exceeding three years (for the purpose of ore and other prospecting, stone quarrying, extraction of clay, sand and gravel, lease of natural resources for the purpose of their being placed under protection and the like).

Upon the expiration of the period for which the incomplete expropriation has been carried out, the beneficiary of expropriation is obliged to restore the land to original condition.

Article 6

The land intended to serve for a certain purpose in connection with construction of buildings and establishment of easement, for which public interest has been determined in accordance with the present Act (to house workers, materials, machines and the like) may be occupied on a temporary basis for up to three years (temporary occupation).

Temporary occupation will be cancelled once the purpose for which it was established terminates and the land will be restored to its original condition.

Article 7

The performance of operations preparatory to expropriation may be permitted on a specified real estate.

Article 8

Expropriation may be carried out in order to satisfy the needs of the Republic of Serbia, an autonomous province, a city, the City of Belgrade, a municipality, public funds, public enterprises, companies established by public enterprises, as well as for the needs of companies majority-owned by state capital and incorporated by the Republic of Serbia, an autonomous province, a city, the City of Belgrade or a municipality, unless otherwise provided by law.

Easement in favor of the entities referred to in paragraph 1 of this Article, as well as in favor of citizens, if so specified by law, may be established in the expropriation procedure for the purpose of laying water mains, electric power and telephone cables and the like.

Article 9

The expropriation of a real estate entitles the beneficiary of expropriation to use that real estate for the purpose for which the expropriation has been carried out.

Article 10

If during the expropriation of a part of a real estate it is found that the owner has no economic interest to use the remaining part of that real estate, i.e. if due to that the owner's livelihood in the remaining part of the real estate is rendered impossible or substantially aggravated, that part of the real estate will also be expropriated at his request.

Article 11

The compensation for expropriated real estate is set in money, unless otherwise provided by this Act.

Article 12

The expropriation of a building standing on development land owned by state, i.e. in public property entails the termination of the right of such building’s owner to use the land under the building and the land serving for its regular use.

The former owner of the land where on the right of use has been terminated, is entitled to compensation, unless the compensation had already been paid to him.

Article 13

The title of the expropriated real estate may be returned to its former owner under conditions determined by this Act.

Article 14

In the areas affected by major natural disasters, expropriation of real estate is carried out under a special procedure determined by this Act.

Article 15

The compensation for expropriated arable agricultural land due to a person whose livelihood depends on the income from that land is determined, at his request, by giving him the title to other appropriate land with the same crop and class or of corresponding value in the same place or nearby.

The provision of paragraph 1 of this Article does not relate to cases in which expropriation is carried out for the purpose of extracting coal, non-ferrous metals, building materials, crude oil and natural gas, for the purpose of building power supply facilities (thermal power stations, thermal power stations/district heating stations, transformer stations, high-voltage power transmission lines, hydroelectric power station water storages), transport, storing and processing crude oil and natural gas, as well as for water supply and protection from floods and construction of buildings for protection against the harmful effect of water.

In the case of expropriation of agricultural land for the purpose of constructing line infrastructure facilities, the compensation for such land is determined by transferring of the title to the previous owner of other suitable agricultural land of the same crop and class or corresponding value in the same place or in its immediate surroundings.

If the expropriation beneficiary is not able to offer other suitable agricultural land as referred to in paragraph 3 of this Article, the compensation is set in money.

The compensation due to the former owner of an expropriated building used for livestock rearing and storage or processing of agricultural products, whose livelihood depends on the income from such activities, is set by giving him the title to another building in which he will be able to continue on performing his activity, at the place proposed by the former owner within the borders of his agricultural holding, in conformity with applicable regulations.

The beneficiary of expropriation must perform the duty referred to in paragraph 5 of this Article at the latest within 12 months from the day of demolition of the expropriated building.

Pending the conveyance of the possession of the building given as compensation the beneficiary of expropriation is obliged to make it possible for the former owner to use the other building prior to demolition of the expropriated building.

Article 16

At the request of the former owner of a residential building or apartment, i.e. business premises, the beneficiary of expropriation is obliged to transfer to him the title or co-ownership of another residential building or apartment, i.e. business premises at the same place or nearby, the structure and surface area of which correspond to the conditions for dwelling, i.e. conducting business the former owner had prior to expropriation.

In a case when a large complex of land is being expropriated in conformity with this Act for the purpose of executing certain works, the beneficiary of expropriation is obliged to provide the former owner with another real estate in terms of paragraph 1 of this Article in the territory of the municipality in which the expropriated real estate is situated.

The former owner who uses the expropriated building is provided with another real estate in terms of paras. 1 and 2 of this Article, prior to demolition of the expropriated building, and the former owner who is not the user of the expropriated building is provided with another real estate at the latest within six months from the day of finality of the expropriation order.

The former owner and members of his family household, whose residential building has been expropriated for the purpose of exploiting mineral raw materials, are entitled to be awarded with a building lot within the scope of total compensation, provided that the settlement or a part thereof is being dislocated due to that expropriation and that they were residing in that building at the moment of the adoption of the expropriation order.

Article 17

In the case when there is a difference in value between the expropriated building and the building whose title or co-ownership is given as compensation, the beneficiary of expropriation, i.e. the former owner is obliged to pay the difference in price to the other party.

The former owner has the duty referred to in paragraph 1 of this Article only in the case when he agrees to be given the title or co-ownership to a building whose value is higher than that of the expropriated building.

The mode of, conditions for and time limit for payment of the difference referred to in paragraph 1 of this Article is determined by agreement of the parties, i.e. by court decision.

Article 18

If the former owner is not requesting to be given the right of ownership or co-ownership to another real estate for the expropriated one pursuant to Article 16 of this Act, the beneficiary of expropriation is obliged to pay him compensation in money, without being bound to provide him with another real estate.

Article 19

The beneficiary of expropriation is obliged, prior to demolition of the building, to enable the person holding a indefinite period of time lease of a socially-owned or state-owned apartment or the holder of the tenancy right in an expropriated residential building or apartment which is a separate part of the building, to use some other suitable socially-owned or state-owned apartment with lessee rights for an indefinite period of time.

II DETERMINATION OF PUBLIC INTEREST

Article 20**

The Government may determine public interest for expropriation if the expropriation of real estate is necessary for the construction of buildings in the following fields: education, public health, social welfare, culture, water management, sports, infrastructure in the fields of traffic, energy and public utility, buildings needed by the state authorities and territorial autonomy agencies and local self-government authorities, buildings needed for defense of the country, as well as for building of apartments that solve the housing need of economically challenged persons.

The Government may also determine public interest in the case when the expropriation of real estate is necessary for the exploitation of mineral raw materials, for securing the protection of environment and protection against natural disasters, including also the construction of buildings and execution of works for these purposes, as well as for acquiring the undeveloped land necessary for dislocation of a settlement or a part of the settlement, if in the area where such settlement, or part of the settlement is located, the public interest has been determined for expropriation of real estate for exploitation of raw materials, as well as in other cases provided by law.

The Government may determine public interest for expropriation of real estate which, according to a contract on joint venture, i.e. joint incorporation of a company, concluded by the Republic of Serbia, is necessary to secure the non-pecuniary share of the Republic of Serbia in that company and which is part of that contract or a corresponding planning act.

Public interest for expropriation may be determined if an appropriate planning act has been adopted in conformity with the law, unless otherwise provided by this Act.

The proposal for the determination of public interest for expropriation may be submitted by a person that may be a beneficiary of expropriation under the provisions of this Act.

The proposal for the determination of public interest for expropriation submitted to the Government through the ministry responsible for finance, contains the particulars about the real estate for which the determination of public interest is proposed, type of the building to be constructed, i.e. type of works to be executed on the given land, as well as the data on the land being obtained for the purpose of compensating the former owners of the expropriated real estate who are being displaced because of exploitation of mineral raw materials, i.e. on the land obtained for the purpose of securing the non-pecuniary share of the Republic of Serbia in the incorporation of a company in terms of paragraph 3 of this Article, and other data of importance for the determination of public interest. The proposal shall be filed together with an extract from the relevant planning act, and in the case of acquiring the real estate for the purpose of securing the non-pecuniary share of the Republic of Serbia as referred to in this paragraph - an extract from the joint venture contract, i.e. from the contract of joint incorporation of a company, if the appropriate planning act does not exist.

The Government is obliged to render a decision on the proposal for the determination of public interest within 90 days.

If the applicant in the procedure for determining public interest neither presents all of the evidence required under paragraph 6 of this Article, nor provides these evidence within an approved further time limit, in consequence of which it is not possible to consider the proposal, the ministry responsible for finance issues a conclusion to reject such a proposal as incomplete.

In the decision determining public interest in terms of this Article, the Government shall also designate the beneficiary of expropriation.

The decision on the proposal for determining public interest may also be rendered without hearing the parties beforehand.

The Government decision adopting the proposal for determining public interest includes the individual reference of each real estate for which public interest has been determined or a reference to the document, including also the contract referred to in paragraph 3 of this Article (name of document, name of the authority which has issued that document, i.e. the names of contracting parties and number and date of issue of the document, i.e. conclusion of the contract), on the basis of which it is possible to establish with certainty which real estate is included in that document.

The Government decision adopting the proposal for determining public interest is published in the "Official Herald of the Republic of Serbia".

An administrative dispute may be instituted with the competent court against the Government decision on the proposal for determining public interest within 30 days from its serving.

III OPERATIONS PREPARATORY TO EXPROPRIATION

Article 21

A legal person intending to file a proposal for expropriation may apply for permission to perform the necessary preparatory operations in the real estate concerned (soil testing, surveying and the like), for the purpose of making the feasibility study, filing the proposal for the determination of public interest or the proposal for expropriation.

Article 22

The application for permission to perform preparatory operations must include the following: purpose for which the expropriation is intended to be proposed, real estate in which the preparatory operations are intended to be performed, owner of that real estate, nature, scope and purpose of operations, as well as their duration.

The ministry in charge of finance decides on application for permission to perform preparatory operations.

Article 23

If the applicant for permission to perform preparatory operations establishes probability that the preparatory operations are necessary for the purposes determined by this Act, the ministry in charge of finance shall permit the performance of preparatory operations.

When deliberating whether to adopt a decision to permit the performance of preparatory operations care shall be taken that they are not performed at a time that is inconvenient to the owner of the real estate, in view of the crops grown on and the purpose for which the real estate is used.

The decision referred to in paragraph 2 of this Article must also list, among other things, the preparatory operations the applicant may perform, as well as the time limit within which he is obliged to perform them.

The decision referred to in paragraph 2 of this Article may not permit the execution of construction or other similar works.

Article 24

A legal person in whose favor the permission to perform preparatory operations is issued must pay to the owner of real estate the compensation prescribed by this Act.

IV EXPROPRIATION PROCEDURE

Article 25

The beneficiary of expropriation may file the proposal for expropriation only after public interest for expropriation of real estate has been determined in conformity with this Act.

The Public Attorney of the Republic of Serbia files the proposal for expropriation on behalf of the Republic of Serbia.

A competent public attorney, i.e. some other person representing an autonomous province, a city, the City of Belgrade, i.e. municipality files the proposal for expropriation on behalf of an autonomous province, a city, the City of Belgrade, i.e. a municipality.

The proposal for expropriation is filed with the municipal administration of the municipality in the territory of which the real estate proposed to be expropriated is situated, within a year from the day of determination of public interest for expropriation.

Article 26

The following must be indicated in the proposal for expropriation:

1) Name and registered office of the submitter of the proposal for expropriation (the beneficiary of expropriation);

2) Real estate proposed to be expropriated and place where that real estate is situated;

3) Owner of the real estate proposed to be expropriated and his address or registered office;

4) Purpose for which the expropriation is proposed.

Article 27

The following is filed together with the proposal for expropriation:

1) Extract from the cadaster of real estate or other public records in which the rights to real estate are entered, containing particulars about the real estate proposed to be expropriated;

2) Certified extract from the corresponding planning act adopted in accordance with regulations, and if such planning act does not exist in the case of expropriation for the purpose of obtaining the real estate necessary for securing the non-pecuniary investment of the Republic of Serbia in a company pursuant to Article 20 paragraph 3 of this Act - an extract from the joint venture contract, i.e. contract of joint incorporation of a company;

3) Evidence that public interest for expropriation has been determined in conformity with this Act.

Article 28

Besides the legal instruments referred to in Article 27 of this Act, the beneficiary of expropriation is also obliged to file, together with the proposal for expropriation, a guarantee of one of the commercial banks for the amount of dinar funds necessary for the securing the compensation for the expropriated real estate.

The guarantee referred to in paragraph 1 of this Article is valid all until the payment of compensation.

The guarantee referred to in paragraph 1 of this Article also contains a clause to the effect that the amount of funds specified in the guarantee is to be increased by the retail price growth index, all until the moment of payment of the compensation.

When the beneficiary of expropriation is the Republic of Serbia, an autonomous province, a city, the City of Belgrade, a municipality or some other beneficiary of expropriation which, according to applicable regulations, cannot open an account with a commercial bank, along with the proposal for expropriation, besides the legal instruments referred to in Article 27 of this Act, instead of the guarantee of a commercial bank, such beneficiary is obliged to also submit a certificate of allotted assets in the budget of the beneficiary of expropriation, i.e. an authorization or some other instrument as security interest for the payment of compensation, in keeping with the regulations that govern payment transactions.

Article 29

A municipal administration in charge of proprietary and legal affairs in the municipality in the territory of which the real estate proposed for expropriation is situated (hereinafter: the municipal authorities) conducts the proceedings concerning the proposal for expropriation and renders a decision on it.

The duties referred to in paragraph 1 of this Article, with the exception of rendering decisions on appeals in the second-instance, as well as other government administration duties are performed by municipalities, cities and the City of Belgrade as delegated duties.

If the legal instruments referred to in Article 28 of this Article are presented together with the proposal for expropriation or subsequently, and if those legal instruments substantiate the needed facts, the authority referred to in paragraph 1 of this Article shall issue a decision to adopt the proposal for expropriation, otherwise it shall reject that proposal.

The expropriation decision, as well as the decision on administrative transfer rendered without the decision determining the public, i.e. general interest for expropriation, i.e. administrative transfer of real estate, is null and void.

Prior to issuing the expropriation order, the authority referred to in paragraph 1 of this Article shall hear the owner of the real estate concerning the facts of importance for expropriation of the real estate.

The ministry in charge of finance decides on appeal filed against first-instance decision on proposed expropriation.

Article 30

In a case referred to in Article 10 of this Act, the authority conducting the expropriation procedure is obliged to advise the former owner that he may file a request for the expropriation of the remaining part of the real estate and enter that in the minutes.

A request in terms of paragraph 1 of this Article may be filed within two years from completion of the construction of the building, i.e. completion of works.

If the request for expropriation of the remaining part of the real estate is filed before the first-instance expropriation order is issued, the municipal authorities shall deal with that request concurrently with the proposal of the beneficiary of expropriation, and if the request was filed after the issuing of the first-instance order, the request is dealt with in a separate proceeding.

Article 31

The expropriation order adopting a proposal for expropriation includes the following in particular:

1) Designation of the beneficiary of expropriation;

2) Designation of the real estate to be expropriated, stating the data from the cadaster of real estate or other public records in which the rights to real estate are entered;

3) Designation of the owner of real estate and his domicile or registered office;

4) Designation of the purpose of expropriation, i.e. the building for the construction of which the real estate is to expropriated, as well as the number and date of the decision determining public, i.e. general interest for expropriation and name of the authority which has rendered that decision;

5) Duty of the beneficiary of expropriation referred to in Arts. 15, 16 and 19 of this Act;

6) Duty of the owner, i.e. holder to convey the possession of the real estate to the beneficiary of expropriation, as well as the time limit for conveyance;

7) Duty of the beneficiary of expropriation to present to the municipal authorities an offer in writing concerning the form and amount of compensation for the expropriated real estate, within 15 days from the day the expropriation order became final.

Article 32

Based on the proposal for expropriation, the beneficiary of expropriation is obliged to file a request for the annotation of expropriation in the cadaster of real estate or in other public records where the rights to real estate are entered.

The conveyance of the real estate concerning which the annotation was entered, as well as the change of relations affecting the real estate (change of holder of the tenancy right, etc.) that could affect the duties of the beneficiary of expropriation, does not produce legal effect in relation to the beneficiary of expropriation.

Article 33

The expropriation procedure costs are be borne by the beneficiary of expropriation.

Article 34

The beneficiary of expropriation gains the right to take possession of the expropriated real estate on the day when the decision on compensation becomes final, i.e. on the day of conclusion of the agreement on compensation for the expropriated real estate, unless otherwise provided by this Act.

Article 35

At the request of the beneficiary of expropriation, the ministry in charge of finance may decide to hand over the possession of real estate to the beneficiary of expropriation before the decision on compensation becomes final, i.e. before the day of conclusion of the agreement on compensation for the expropriated real estate, but not before adoption of the second-instance decision on the appeal filed against the expropriation order, if it finds that this is necessary because of urgency to construct a certain building or to execute some works.

The handover of possession to the beneficiary of expropriation shall not be allowed before the decision on compensation becomes final, i.e. prior to the conclusion of the agreement on compensation, if the beneficiary of expropriation did not determine beforehand the elements necessary for setting the amount of compensation for the expropriated building, in terms of Article 31, item 7 of this Act.

If the real estate has been handed over to the beneficiary of expropriation before the decision on compensation became final, i.e. before the agreement on compensation was concluded, and the proposal for expropriation becomes finally rejected in further proceedings, the beneficiary of expropriation is obliged to return the real estate to the owner and pay damages.

If the real estate is being expropriated for the purpose of construction of a facility for the generation, transmission or distribution of electricity or construction of line infrastructure facilities, the handover of that real estate shall be carried out at the request of the beneficiary of expropriation in order to put it into use, on the basis of the final expropriation order, on condition that the beneficiary of expropriation proves that it has performed the duty referred to in paragraph 2 of this Article.

Article 36

The beneficiary of expropriation may desist from the proposal for expropriation before the expropriation order becomes final.

A final expropriation order shall be annulled or amended whenever the beneficiary of expropriation and the former owner jointly request so.

A final expropriation order shall be annulled or amended at the request of the former owner of the expropriated real estate, i.e. his heir, if the beneficiary of expropriation, within three years from the day decision on compensation became final, i.e. from the day of execution of the agreement on compensation, fails to carry out, taking into account the nature of the building, substantial works on the building for the construction of which the expropriation was carried out.

Upon expiration of the time limit of five years from the day when the decision on compensation became final, i.e. the day when the compensation agreement was concluded, the former owner of the expropriated real estate, i.e. his successor may not file a request for annulment or amendment of the final expropriation order.

In the case of expropriation for the purpose of exploitation of mineral raw materials the final expropriation order shall be annulled or amended in terms of paragraph 3 of this Article if the beneficiary of expropriation fails to execute the preparatory and other works necessary for the exploitation of mineral raw materials within six years from the day the decision on compensation became final, i.e. from the day when the agreement on compensation was concluded.

In the case when expropriation has been carried out for the needs of exploitation of mineral raw materials in open-pit mines, the former owner of the expropriated real estate, i.e. his heir, may not file a request for annulment or amendment of the final expropriation order upon expiration of a time limit of eight years from the day when the decision on compensation became final, i.e. from the day when the compensation agreement was concluded.

The authorities that decided in the first-instance on a proposal for expropriation also decide on desistance from the proposal for expropriation and on the request for the annulment or amendment of the final expropriation order.

If a real estate that was expropriated by an order the annulment or amendment of which is requested had several owners, the request may be decided on if it was filed by the majority of them, provided that the competent authorities will also demand from the rest of them to state their position on the request.

In the event of a dispute, a competent court solves the proprietary relations between the beneficiary of expropriation and the owner of the real estate.

The provisions of paragraphs 4 and 6 of this Article do not relate to the annulment or amendment of the final expropriation decision in the case referred to in paragraph 2 of this Article.

V SPECIAL PROCEDURE FOR EXPROPRIATION IN THE AREAS AFFECTED BY MAJOR NATURAL DISASTERS

Article 37

In the areas affected by earthquake, flood, fire, ecological accident or some other major natural disaster, expropriation for the purpose of constructing buildings and executing works for the elimination of consequences of such disaster, is carried out in conformity with the provisions of Arts. 38 to 40 of this Act.

Article 38

Land may also be temporarily occupied when necessary for the installation and construction of temporary buildings (business buildings, buildings to house the population and property and the like).

An appeal filed against a decision establishing temporary occupancy of land does not stay the execution of the decision.

The decision on temporary occupancy of land shall be cancelled once the reasons for which it was rendered cease to exist.

Article 39

Based on the effective expropriation order, the beneficiary of expropriation may request the handover of that real estate for the purpose of putting it to use, unless otherwise provided by this Act.

The municipal assembly may decide, at the request of the beneficiary of expropriation, to have the real estate handed over to him after rendering of the first-instance order, if that is called for due to the urgency for the execution of works.

If a residential building, an apartment as part of a building or business premises are being expropriated, the beneficiary of expropriation is obliged to provide the former owner, holder of the tenancy right and lessee with another apartment or business premises to be owned, co-owned, used or leased by them, within a time limit which may not be longer than six months counting from the day of moving out from the expropriated building, apartment or business premises.

Pending the provision of an apartment or business premises, the beneficiary of expropriation is obliged to provide the persons referred to in paragraph 3 of this Article, prior to demolition of such building, with temporary accommodation that fulfills the basic dwelling requirements, i.e. requirements for conducting business (appropriate number of rooms, electric lighting, water supply and the like).

The provisions of paras. 3 and 4 of this Article shall apply mutatis mutandis also in the case of expropriation of other buildings.

Article 40

The Government determines the areas in which the provisions of Arts. 38 and 39 of this Act shall be applied, as well as the time in which they shall be applied.

Unless otherwise provided by provisions of Arts. 38 and 39, other provisions of this Act shall be applied in the areas affected by major natural disasters.

VI COMPENSATION FOR EXPROPRIATED REAL ESTATE

1. Amount of Compensation

Article 41

The value of the building given into ownership or co-ownership as compensation and the value of the expropriated building, in the case of establishment of ownership or co-ownership rights, is determined according to market value of such buildings at the moment of establishment of the ownership, i.e. co-ownership rights.

The amount of compensation in money for the expropriated real estate is set in accordance with market price and circumstances existing at the moment of conclusion of the agreement on the amount of compensation, and if an agreement has not been reached, in accordance with the circumstances existing in the moment of adoption of the first-instance decision on compensation.

If the real estate is handed over to the beneficiary of expropriation before the expropriation order became final, the former owner is entitled to choose whether the compensation is to be set in accordance with the circumstances existing at the time of handover of the expropriated real estate or at the time when the first-instance decision on compensation was rendered.

If different kinds of real estate owned by the same owner are expropriated, the compensation for each individual kind of real estate (land, buildings, devices, etc.) is separately specified in the agreement on the amount of compensation, i.e. in the court decision.

Article 42

Compensation for expropriated agricultural land and building land is set in money in accordance with market price of such land, unless otherwise provided by the law.

The appraisal of the market price referred to in paragraph 1 of this Article is made by the authority responsible for the levying of tax on the transfer of absolute real estate rights.

Article 43

Compensation for an expropriated residential building, apartment or business premises is set in accordance with the market price of such real estate.

Article 43a

The user of the state-owned or public-owned building land is entitled to compensation for the seized land as follows:

1) A previous owner or some other person who derives the right of use from the previous owner’s right, in terms of the Article 84 of the Planning and Construction Act ("Official Herald of RS", Nos. 47/03 and 34/06) - in the amount of the market price of the land;

2) A person who became the user of state-owned building land up to 13 May 2003, in terms of the Article 87 of the Planning and Construction Act ("Official Herald of RS", Nos. 47/03 and 34/06) - in the amount of the funds invested in acquisition of that land.

The funds for acquisition of land, in terms of paragraph 1, item 2), of this Article, are not deemed to be the funds paid for the fee for development and use of the building land and the costs of legalizing the building.

The amount of funds for the acquisition of building land under paragraph 1, item 2, of this Article is valorized by the retail price growth rate from the day of payment of the funds for the acquisition of land to the day of the conclusion of the compensation agreement, i.e. rendering of the decision on compensation for the seized land, provided that such amount may not be higher than the market price of the land.

The user of land is entitled to the compensation under this Article only if it has not been paid to him earlier.

Article 44*

(Repealed by the Decision of the FCC)

Article 45

A compensation for an expropriated fruit-bearing vineyard or orchard is set by determining the compensation for land pursuant to Article 42 of this Act, and then adding to that amount the market price of non-depreciated investments invested into development and maintenance of such vineyard or orchard and the amount net yield that vineyard or orchard would have given, in view of its age and fertility, in as many years as is necessary for a new vineyard or orchard to be developed and to reach full yield.

Compensation for an expropriated young vineyard or orchard which is not yielding fruit is set by determining the compensation for land pursuant to Article 42 of this Act, and after that adding to it the value of investments invested in its development and the amount of the net yield it would have reached in as many years as that vineyard or orchard is old up to the moment of expropriation.

A compensation for each fruit tree or vine situated on expropriated land is also be set in conformity with the provisions of paragraphs 1 and 2 of this Article.

Article 46

Compensation for an expropriated nursery is set in the same manner as for the agricultural land (Article 42). The thus set compensation is increased by the market price of the nursery material (nursery stock and other material for reproduction) the former owner had not used up until the day of handover of real estate to the beneficiary of expropriation.

Article 47

A compensation for an expropriated mature or nearly mature forest represents the value of forest trees and other forest products established in accordance with market prices on the truck road or at another loading, i.e. purchasing place, reduced by the costs of production.

A compensation for an expropriated young forest is set in accordance with the costs of raising such forest, increased by the factor of value increase that achieves the value of a mature forest.

The compensation set under the provisions of paras. 1 and 2 of this Article is increased by the amount of compensation for land set in accordance with the provisions of Article 42 of this Act.

The production costs are understood to mean the costs of felling, processing and transporting logs from the forest to the truck road or some other loading, i.e. purchasing place.

The costs of raising a young forest which is artificially raised are set in the amount of costs of afforestation, while the costs of raising a young forest which has grown naturally, in the amount of costs of artificial afforestation using seeds.

Article 48

For the purposes of this Act, a forest nearly mature for felling is understood to mean a single-aged forest that has reached at least two thirds of the age of a mature forest, while a young single-aged forest is understood to mean a forest that has reached up to two thirds of the age of the forest mature for felling.

An old-growth forest (selection forest and all-aged group forest) is understood to mean a forest mature for felling.

Article 49

A compensation for a vineyard, orchard, nursery and forest which are located on the building land, is set in accordance with the provisions of Arts. 45 through 47 of this Act.

Article 50

The former owner is not entitled to compensation for the investments he made after the day when he was notified in writing of the filed proposal for expropriation, with the exception of the costs which were necessary for the use of real estate.

The authorities competent for the issuance of the expropriation order deliver to the former owner the notification about the filed proposal for expropriation.

Article 51

When setting the compensation in conformity with the provisions of this Article, an amount higher than the market price may be set, taking into account the former owner's financial and other personal and family circumstances, if such circumstances are of substantial importance for his livelihood (number of household members, number of household members who are capable of conducting a business, i.e. who are employed, state of health of household members, monthly household income and the like).

Article 52

The former owner is entitled to harvest the crops and pick the fruits from the expropriated land.

In cases of exceptional urgency, the authorities competent for the issuance of the expropriation order may allow the beneficiary of expropriation, at the latter's request, to start executing works on the expropriated land before the crops or fruits are ready for harvesting or picking.

An appeal does not stay the execution of the order referred to in paragraph 2 of this Article.

If the former owner was unable to harvest the crops or pick the fruits, because the beneficiary of expropriation was allowed to start executing works prior to crop harvesting or fruit picking, the former owner is entitled to compensation for crops or fruits according to market price, after deduction of necessary costs he would have incurred in connection with harvesting or picking.

Article 53***

In the case of establishment of easement, the compensation is set in the amount by which the market value of the land or buildings has decreased because of the established easement.

The compensation referred to in paragraph 1 of this Article is set under the procedure prescribed by this Act for setting the compensation.

Article 54

In the case of establishment of a lease, the compensation is set in the market value of the lease for the nearest similar land.

The compensation is set as a lump sum for the whole lease period or in periodical payments, made at equal time intervals.

The compensation is calculated from the day when the land was handed over to the lessee.

If the establishment of the lease caused actual damage to the land owner, a compensation is given for such damage too.

Article 55

A compensation for temporary occupation of land is set in the amount and in the manner determined by this Act for the compensation in the case of establishment of lease.

A compensation for preparatory operations is set in the amount and in the manner determined by this Act for establishment of lease, provided that the duration of preparatory operations and the time necessary for restoring into original use or preparing for future use shall be taken as the basis for calculation of compensation.

2. Compensation Setting Procedure

Article 56

After the expropriation order becomes final, the municipal authorities are obliged to schedule and conduct without any delay a hearing for setting of compensation for expropriated real estate by mutual agreement.

The beneficiary of expropriation is obliged to submit to the authorities referred to in paragraph 1 of this Article an offer in writing concerning the form and amount of the compensation within a time limit not longer than 15 days from the day when expropriation order became final.

The authorities referred to in paragraph 1 of this Article forward to the former owner of the expropriated real estate a copy of the offer without any delay and acquires the information from administrative and other agencies and organizations about facts that could be of importance for setting the compensation by mutual agreement.

Article 57

The agreement on compensation for the expropriated real estate must determine in particular the form and amount of compensation and the time limit within which the beneficiary of expropriation is obliged to perform his obligations, as well as the obligations of the former owner, if stipulated in the agreement.

The agreement on compensation is entered into the minutes which must contain all data necessary for performance of the obligations of the parties.

The agreement on compensation has the force of an enforceable document, unless the municipal authorities refuse to conclude the agreement.

Once the first-instance expropriation order is issued, the parties may not negotiate the forms and amount of compensation outside the procedure determined by this Act.

Article 58

The municipal authorities shall refuse to conclude the agreement on the forms and amount of compensation for the expropriated real estate, should they find that such agreement would be contrary to applicable regulations.

A separate appeal may not be filed against the decision refusing to conclude the agreement pursuant to paragraph 1 of this Article.

If the municipal authorities refuse to conclude the agreement on compensation, they shall forward the whole expropriation case file to the territorially competent municipal court for the purpose of setting the compensation.

Article 59

The parties may agree on the following in the proceedings before the municipal authorities or the competent court: on giving of other real estate into ownership or co-ownership, instead of the expropriated real estate, on monetary amount of compensation, on mutual payments of the difference in the value of real estate, on transfer of expropriated buildings to another location permissible under regulations, on construction of accesses, passages and access roads, as well as on other actions permitted by the law.

Article 60

The agreement on compensation in money is executed by the competent court, while the agreement on other forms of compensation is executed by the municipal authorities.

Article 61

Should the agreement on full compensation not be reached within two months from the day when the expropriation order became final, the municipal authorities shall forward to the competent municipal court the final expropriation order together with the case file for the purpose of setting the compensation.

Should the municipal authorities fail to act in compliance with the provision of paragraph 1 of this Article, the former owner and the beneficiary of expropriation may address the court directly for the purpose of setting the compensation.

Article 62

The beneficiary of expropriation bears the cost of the procedure for setting the compensation for expropriated real estate by agreement.

3. Other Provisions

Article 63

As of the day of finality of the expropriation order the following are revoked: easements in gross relating to the expropriated real estate and all real encumbrances, except for the appurtenant easements whose performance is possible after putting the expropriated real estate to its intended use.

A mortgage established on the expropriated real estate is transferred to the real estate given into ownership or co-ownership as compensation for the expropriated real estate, or to some other private property of corresponding value.

The real estate rights referred to in paragraph 1 of this Article are struck off from the cadastre of real estate or other public books, at the proposal of the beneficiary of expropriation.

Article 64

The registration of ownership and other rights to expropriated real estate is carried out on the basis of the enforceable expropriation order.

Each party may file the application for registration.

The registration of ownership and other rights to the real estate conveyed to the former owner as compensation is carried out on the basis of enforceable expropriation orders and enforceable legal instruments on compensation.

Article 65

The easements of passage, transport, water pumping, erection of power transmission facilities, and other easements if favor of legal persons may be established on the state-owned and socially-owned land.

The compensation for established easements is set in the amount which corresponds to the decrease in value of land or building, i.e. yield of crops due to the established easements.

Article 66

The compensation for temporary occupation of socially-owned and state-owned land is set in an amount that corresponds to the rent gained for the nearest similar land.

The compensation referred to in paragraph 1 of this Article does not exclude the right to damages pursuant to the regulations of tort law.

Article 67

The municipal authorities render decisions relating to establishment of easement or temporary occupation, unless otherwise provided by law.

Article 68

All submissions made and decisions rendered in the procedures of expropriation and determination of compensation for the expropriated real estate, are exempt from payment of stamp duty.

Article 69

The municipal authorities keep a record of real estate expropriations in their respective territories.

The minister of finance prescribes the contents and mode of keeping a record of real estate expropriations.

The municipal authorities forwards the consolidated data from the records referred to in paragraph 1 of this Article to the ministry in charge of finance for each quarter.

VII ADMINISTRATIVE CONVEYANCE

Article 70

The rights to state-owned or socially-owned real estate may be seized or restricted by decision of the municipal authorities and conveyed to some other holder of rights to state-owned or socially-owned real estate, if so is called for by the public interest (administrative conveyance).

The public interest referred to in paragraph 1 of this Article is determined in the manner as provided by the law for the expropriation of real estate.

Article 71

In the case of an administrative conveyance of socially-owned land or some other natural resource, the holder of the right to land or other natural resource who acquired such right free of charge is entitled to be compensated only for the work and funds invested in that land or some other natural resource.

Article 71a

Unless otherwise provided by this Act, the provisions relating to the expropriation of real estate apply mutatis mutandis also to the administrative conveyance of real estate.

VIII TRANSITIONAL AND FINAL PROVISIONS

Article 72

A proceeding instituted in connection with a proposal for expropriation which has not been concluded with a final decision by the day this Act enters into force shall be concluded in conformity with the regulations that were in force until the day this Act entered into force, except in cases in which the expropriation proceeding involving commercial and residential buildings has not been concluded with a final decision.

A proceeding for determination of the compensation for the expropriated real estate in which up to the day this Act entered into force, an agreement on compensation has not been executed, i.e. a final court decision has not been rendered, shall be finalized in conformity with the provisions of this Act.

Article 72a

If public interest has been determined in keeping with this Act in favor of a public enterprise, but for the needs of its subsidiary company, the decision to determine public interest may be modified at the joint request of the public enterprise concerned and its subsidiary company so that the beneficiary of expropriation is the subsidiary company, if that company may be a beneficiary of expropriation under this Act.

In a case referred to in paragraph 1 of this Article, the subsidiary company has the rights and obligations of a public enterprise with regard to expropriation of real estate and settlement of compensation for the expropriated real estate.

Article 73

As of the day of entry into force of this Act the Expropriation Act ("Official Herald of SRS, Nos. 40/84, 53/87, 22/89 and 15/90, and "Official Herald of RS, No. 6/90) is repealed.

Article 74

This Act enters into force on the eighth day upon the day of its publication in the "Official Herald of the Republic of Serbia".

 

Independent Articles of the Act to Amend and Supplement the Expropriation Act

("Off. Herald of RS, No. 20/2009)

Article 21

A proceeding to annul a final expropriation order which has been initiated but not finally ended by the day of entry into force of this Act shall be finalized in accordance with the regulations which applicable until this Act entered into force.

A proceeding to determine public interest for expropriation which has not been finalized up to the day this Act entered into force shall be finalized in accordance with the regulations which were applicable until this Act entered into force.

The decisions determining public interest rendered in accordance with law up to the day this Act entered into force shall stay in force and proposals for expropriation may be filed on the basis of them.

If public interest for expropriation in favor of a public enterprise was determined in accordance with the law for the needs of its subsidiary company up to the day of entry into force of this Act, the decision determining public interest may be modified at the joint request of the public enterprise and its subsidiary company, so as to make the subsidiary company the expropriation beneficiary, if that company may be a beneficiary of expropriation under the provisions of this Act.

In the case referred to in paragraph 4 of this Article, the subsidiary company has the rights and obligations of a public enterprise with regard to expropriation of real estate and settlement of compensation for the expropriated real estate.

A proceeding for expropriation of real estate which has not been concluded with a final decision up to the day this Act enters into force, and was instituted at the request of a public enterprise for the needs of its subsidiary company, shall be completed under the regulations which were applicable up to the day this Act entered into force, in favor of that subsidiary company, if it may be an expropriation beneficiary under the provisions of this Act and if the decision on determining public interest has been modified in favor of that company in terms of paragraph 4 of this Act.

Article 22

This Act enters into force on the eighth day from the day of its publication in the "Official Herald of the Republic of Serbia".