30 September 2010

KPA APPEALS PANEL

WORKING TRANSLATION
OF THE

SRS LAW ON TRADE OF IMMOVABLE PROPERTY

(Official Gazette of the Socialist Republic of Serbia , 43/81, 1. August 1981, p. 3050)

I BASIC PROVISIONS
Article 1
This law regulates the trade of agricultural and construction land, forest and
forestland, buildings, apartments, business premises, ideal parts of immovable property and
other categories of immovable property (hereinafter: immovable property).
Article 2
The trade of immovable property in the sense of this law is considered to be:
1. the transfer of socially-owned immovable property from one social legal person to another;
the procurement of socially-owned immovable property from citizens, associations of citizens
and other civil legal persons; the alienation of socially-owned property, the exchange of
socially-owned immovable property and any other way to dispose of socially-owned property
as well as
2. the transfer of the right of ownership between citizens, associations of citizens and other
civil legal persons (hereinafter: ownership right holder/s) and the acquisition of the right of
ownership to socially-owned immovable property.1
Article 3
Immovable property which can be subject to the right of ownership may be traded
freely unless otherwise determined by law.
Immovable property in general use as well as other immovable property as specified
by law cannot be traded.
A contract on the transfer, the acquisition or the alienation of immovable property in
the sense of paragraph 2 of this Article is null and void.
1

This most probably means that the socially-owned property is transformed into private property (alienated in
the sense of no. 1 of this Article), see the beginning of Part III of the Main Principles of the 1974
SFRY/SRS/SAPK Constitutions, respectively and Article 2 paragraph 2 of the Law on Basic Property Relations.

Article 4
Self-management agreements and contracts concluded between social legal persons on
the transfer of immovable property2 or the exchange of socially-owned immovable property
shall be concluded in writing.
Contracts on the transfer of rights to immovable property between ownership right
holders as well as contracts on the alienation of socially-owned immovable property, on the
exchange of socially-owned immovable property which can be subject to the right of
ownership and contracts on the procurement of socially-owned immovable property shall be
concluded in writing; the signatures of the contracting parties shall be certified by the courts.
Self-management agreements or contracts which do not comply with paragraphs 1 or 2
of this Article are null and void.
Article 5
If a legal transaction exceeds the limits established by law, the transferee does not
acquire the right of ownership to immovable property.
Legal transactions on the acquisition of the right of ownership to immovable property
which are contrary to the provisions stated in paragraph 1 of this Article are null and void.
When having the signatures on the contract certified pursuant to paragraph 2 of
Article 4 of this law, the transferee is obliged to declare that the acquisition of the right of
ownership to the immovable property does not exceed the limits established by law.3
If, based on the transferees statement, the court ascertains that the legal transaction
on the acquisition of the right of ownership to immovable property does not comply with the
provisions stated in paragraph 1 of this Article, the court shall, through court decision, refuse
to certify the signatures of the contracting parties.4
Article 6
When transferring the right of ownership to a building, the right of ownership to the
land on which the building is located and to the land required for the regular use of the
building are also transferred, provided the building is located on land which is subject to an
already existing right of ownership.

Most probably the legislator intended to refer to socially-owned immovable property, see, e.g., Article 2
paragraph 1
3
Pursuant to Article 33, paragraph 3 of Article 5 is not applicable in the entire territory of the Socialist Republic
of Serbia.
4
Pursuant to Article 33, paragraph 4 of Article 5 is not applicable in the entire territory of the Socialist Republic
of Serbia.
Translated by: Aida Kolenovi
Language Assistant
KPA Appeals Panel

3
When transferring the right of ownership to a building located on socially-owned land,
the transferee acquires the right to use the land on which the building is located together with
the land required for the regular use of the building as long as the building exists.
When alienating a socially-owned building , the transferee acquires the right to use the
land on which the building is located together with the land required for the regular use of the
building as long as the building exists.
When transferring a building from one social legal person to another, the land on
which the building is located together with the land required for the regular use of the
building is also transferred.
When transferring or alienating socially-owned agricultural land, the building located
on such land is not simultaneously transferred or alienated unless this is explicitly agreed
upon in a self-management agreement or in a contract.
Article 7
If an ownership right holder acquires immovable property by way of inheritance
(based on legal provisions or on a last will) and if such immovable property either on its
own or together with immovable property he or she already owns exceeds the limits
prescribed by law, he or she has, within these limits, the right to choose the immovable
property to which he or she will retain the right of ownership.
Within three years counted from the date the inheritance decision has become
effective, the ownership right holder may alienate5 the part of the immovable property which
exceeds the said limits; this includes the transformation of inherited business premises into
residential premises, provided this transformation is approved by the competent authority,
complies with urban requirements as well as construction law and does not exceed the limits
to the right of ownership to residential premises.
If the ownership right holder to immovable property in the sense of paragraph 1 of this
Article fails to alienate6 the part of the immovable property which exceeds the limits
prescribed by law - including the failure to transform business premises into residential
premises - within three years counted from the date the inheritance decision has become
effective, such immovable property shall become socially-owned; in this case, the ownership
right holder is entitled to compensation pursuant to the provisions on expropriation.
Paragraphs 1 to 3 of this Article are applicable even upon the termination of the
conditions under which the ownership right holder could have the same right on the particular
immovable property.7
5

Possibly the law should refer to transfer or transformation and not alienation of the immovable
property because the alienation (otudenje) is a prerogative of social legal persons, cf. Article 2 no. 1.
whereas the ownership right holder is a civil legal person, see Article 2 no. 2
6

See footnote 5

This paragraph is completely incomprehensible and remains so after having checked its possible meaning with
several legal advisors.
Translated by: Aida Kolenovi
Language Assistant
KPA Appeals Panel

...
Article 13
A social legal person may transfer buildings or apartments and business premises to
another social legal person against or without remuneration.
A social legal person may alienate property in the sense of paragraph 1 of this Article
only against remuneration, if such property is socially-owned.
...
VI TRANSITIONAL AND FINAL PROVISIONS
Article 33
Based on Article 300 paragraph 1 no. 38 of the Constitution of the Socialist Republic
of Serbia, Articles 2 to 4, paragraphs 1 and 2 of Article 5, Articles 6, 7 and 13 shall equally be
applied in the entire territory of the Socialist Republic of Serbia.
Article 34
As from the day this law enters into force, the Law on Trade of Immovable Property
(SRS Official Gazette No. 15/74 and 14/77) shall cease to be valid.
Procedures initiated in accordance with the provisions of the Law on Trade of
Immovable Property (SRS Official Gazette No. 15/74 and 14/77) shall be completed
pursuant to the provisions of that law9.
Article 35
This law shall enter into force eight days after its publication in the Official Gazette
of the Socialist Republic of Serbia.

Obviously, the referral to no. 3 is a typing error. It should read instead no. 2 (see the separate translation of
excerpts of the 1974 SRS Constitution).
9
i.e. the Law on Trade of Immovable Property (SRS Official Gazette No. 15/74 and 14/77).
Translated by: Aida Kolenovi
Language Assistant
KPA Appeals Panel