LAND REGISTRATION SYSTEM OF THE REPUBLIC OF CROATIA

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"On the last day of the Creation God desired to crown His work, and thus created Kornati Islands out of tears, stars and breath." (George Bernard Shaw) LAND REGISTRATION SYSTEM OF THE REPUBLIC OF CROATIA Damir Kontrec, L.L.B., State Secretary at the Ministry of Justice Lima, October, 2010, 17th CINDER Congress

Presentation Contents History of land registers in the Republic of Croatia Regulations that regulate today the records on real estate in the Republic of Croatia Status of land registry and cadastral records Real property registration and cadastre program Objective development of single Land Database (LDB) and a real property registration and cadastre Joint Information System (JIS)

History of Land Registers in the Republic of Croatia 4 periods : 1) Establishment of land registers in the second half of 19th century until 1930 2) 1930 Land Registration Act until 1945 3) 1945 1996 the period when land registers were neglected 4) Re-establishment of land registers as a registry competent for legal transactions

Constitution of the Republic of Croatia Article 48 of the Constitution ownership right is guaranteed ownership is an obligation and holders of ownership right are obliged to contribute to the general good foreign persons can acquire ownership right under conditions stipulated by the law inheritance right is guaranteed

Law on Ownership and Other Real Rights entered into force on January 1, 1997 a new real and legal regime re-established principle of legal indivisibility of real property (superficies solo cedit) a closed number (numerus clausus) of real rights ownership, construction right, lien, real encumbrances, servitudes trust in the truthfulness and completeness of land registers

Land Registration Act Modelled after the Austrian Land Registration Act (tradition) Codification of material and process land registration law Court practice based on the new Act Land registers are re-established again as the only records legally competent for real property legal transactions Development of market economy, mortgage law, increase in the number of cases in land registries

Function of Land Register Publicity function Function of protection of trust in legal transactions Function accordin to which the real property right are acquired with the registration in land register Function according to the priority order

Real Property Records in the Republic of Croatia Land Register records on legal status of real property (who the owner is, which encumbrances exist) Cadastral data is the basis for land registers, for the sheet A of land register Competency of courts Municipal Courts Real Property Cadastre records on area, shape, land development, cadastral parcel land use Data on owners and other authorized persons is not the original cadastral data, but the data taken over from the land register Competency of state administration (State Geodetic Administration, cadastral offices)

Cadastre Law on State Survey and Real Property Cadastre Cadastral data, in relation to land registry data, is often more accurate because the changes have been conducted in cadastre and not in land register However, the cadastral data often does not correspond to the actual situation of real property in the field

Reasons for the reform of land registration and cadastral system Land registers are not up-to-date (neglected in the period of socialist regime) Land registers and cadastral data are not harmonized Data in records does not correspond to the situation in the field The needs of market economy for security in real properties (mortgages, fiduciary contracts) Protection of ownership rights Protection of domestic and foreign investments Great number of unresolved cases in land registry courts

Organized Land Program Organized Land is a national program of regulating land registers and cadastre of the Government of the Republic of Croatia, and it covers all of the activities conducted by the Ministry of Justice and State Geodetic Administration with the objective to modernize and organize the situation related to real property registration in the Republic of Croatia started in 2003 still ongoing The Project was launched with the basic objective to build an efficient land administration system in order to contribute to the development of an effective real property market. The Project is mostly financed by the World Bank loan, then the European Union donations and the Republic of Croatia budgetary funds.

What has been achieved Systematic education of land registry judges and clerks Manually kept land registers were transcribed into digital form (in computers) in 100%, and the data has been verified in 94% of land registry files Data harmonization has been conducted in 104 main books (cadastral municipalities) Ongoing harmonization of cadastral and land registry data for 69 main books (69 cadastral and 69 land registry commissions), Backlog of unresolved cases has been reduced (by 79,13%) Less time needed to resolve cases (from 88 to 52 days the period between 2004 and 2nd quarter 2010) All land registry data is available on the Internet through the number of cadastral parcel or the number of land registry file

Statistical data In the period between 2005 and 2010 at land registry courts in RoC : New cases received 2.712.335 Cases resolved - 2.959.673 Land registry extracts issued 8.766.431 25.000.000 Number of queries at the e-land register portal 20.000.000 15.000.000 10.000.000 5.000.000 0 2005. 2006. 2007. 2008. 2009. II. Quarter 2010 No of queries 8.000.000 8.695.565 14.722.910 20.672.996 20.125.738 12.750.154

LR cases received and resolved in the Republic of Croatia between 2004 and 2nd quarter 2010 700.000 600.000 500.000 400.000 300.000 200.000 100.000 0 2004. 2005. 2006. 2007. 2008. 2009. II. quarter 2010 LR cases received 175.666 457.075 528.348 550.415 540.901 512.131 246.994 LR cases resolved 219.375 517.040 593.523 576.296 561.182 524.726 261.998

LR extracts issued in the Republic of Croatia between 2005 and 2009 1.800.000 1.600.000 1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 0 2005 2006 2007 2008 2009 II.quarter 2010 LR extracts issued in RoC 1.512.807 1.693.991 1.750.645 1.751.873 1.636.356 816.211

UNRESOLVED LR CASES IN LR OFFICES IN THE REPUBLIC OF CROATIA 450.000 400.000 August 2004 350.000 2004. 300.000 250.000 200.000 2005. 150.000 100.000 2006. 2007. 2008. 2009. 50.000 II. quarter 2010 0 kolovoz 2004. 2004. 2005. 2006. 2007. 2008. 2009. II. quarter 2010 unresolved LR cases 395.500 318.650 214.528 149.214 122.501 105.123 95.217 80.017

120% Flow of transcription and verification of LR in RoC between 2004 and 2nd quarter 2010 100% 80% 60% 40% 20% 0% 2004. 2005. 2006. 2007. 2008. 2009 II. Quarter 2010 Transcribed 22% 56% 93% 98% 99% 100% 100% Verified 1% 9% 27% 40% 52% 84% 94%

Transcription and verification of LR files on September 30, 2010 ready for verification 7,33% verified 94,05%

What is JIS? The basic objective of Organized Land is to create the Real Property Registration and Cadastre Joint Information System (JIS), i.e. to establish a single database for cadastre and land registers, as well as a single application to manage and maintain the aforementioned data. This will be highly benficial to users less time will be needed to access data and to register real property, the citizens will be able to see at one place the ownership structure of real property and its location in space, and there will be many other functionalities. Therefore, this system is a key leverage for the development of e-croatia and entrepreneurship, and will ensure the trust of citizens into registries.

Land Database Model A State Geodetic Administration B C Ministry of Justice

Abstract Model of Land Database A L D State Geodetic Administration B B C Ministry of Justice

What are the expected benefits of JIS? The JIS establishment will ensure the following: Accelerate real property registration in both the cadastral and land registration system Raise the level of legal security in real property transactions Rationalize both systems and simplify business processes Ensure that the harmonized data from both systems have no more discrepancies Improve relations with users, and ensure a faster and good quality service provision

JIS functionalities Integrated cadastre and land registry data a single land database Graphical data integrated with alphanumerical data Centralized single application for all cadastre and land registry offices Single maintenance of all data Avoidance of data duplication due to different applications in cadastre and land registry offices Integration with the Geo-portal and possibility to view the digital orthophoto data Integration with the Spatial Data Register Integration with the OIB (Personal Identification Number) system JIS is a process-oriented application, accelerates business processes and increases internal transparency Possibility to view and edit graphical data Digital signature on electronically created document as the basis for electronic exchange and centralized printing

Thank you for your attention!