ПРАВО ГРАЂЕЊА У РЕПУБЛИЦИ ХРВАТСКОЈ
THE RIGHT OF CONSTRUCTION IN CROATIA

Summary/Abstract: The author believes that state-owned construction land should be transferred to the ownership of local councils, under the condition that the councils cannot sell it but thereby acquire the right of construction, as is the case in many European countries that have applied this or similar institutions during the XX century for resolving social and communal needs. Based on this right, the construction lot is acquired (for a small monthly fee) which enables them to obtain a credit with a mortgage. In this way, the prices of the buildings or apartments are reduced and enables the sale thereof by instalments even during construction. Therefore, this right is used particularly for the purpose of cheaply building apartments and small residential houses. As for big construction land owners (towns and municipalities), which as a rule do not have the necessary investment capital, by establishing the right of construction, they channel the town rents into the construction of cheap apartments, communal infrastructure and suchlike, and when the right of construction expires, ownership of the building reverts to the council for an adequate fee.

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