March 1, 2022

Private municipal and state property can now be acquired by statute of limitations

The moratorium on the acquisition of private state or municipal property by statute of limitations is unconstitutional. This was accepted by the Constitutional Court (CC) in its decision of 24.02.2022.

The moratorium was first introduced in 2006 to prevent the acquisition by statute of limitations of private state and municipal property for which the limitation period had begun in 1996. The measure was initially introduced for a period of 7 months, with the legislator’s idea being to take the necessary actions to identify municipal and state property and to register it properly within this period. However, due to the apparent dysfunctionality of the administration, the moratorium has been consistently extended for more than 15 years, with the latest amendment extending it till the end of 2022.

In its reasoning, the CC held that the legislator’s original aim, namely, to preserve state and municipal property, was a “legitimate legislative aim, the achievement of which may in certain cases impose restrictions on the property rights of other legal subjects”.  

The court decision will not affect the effect of the moratorium in previous years, i.e. the limitation period will be considered suspended and the 15 and so years that have already passed cannot be used for the purposes of the limitation period. The statute of limitations on private state and municipal property suspended on 01.06.2006, will continue to run from the entry into force of the CC decision and, after a total of 10 years have passed, persons who had owned such property will be able to claim its acquisition by statute of limitations.

 

Nikolay Kolev
Senior Associate

Nikolay is a hard-working, attentive, and responsive lawyer playing a central role in DPC stellar real estate and construction team. He is also active in the areas of contract law, commercial law, and public procurement.

Related insights

Innovative solutions and customer care.
Get in touch