Plot restructuring procedure: Plot subdivision

In the case that someone is thinking of subdividing a plot of land they own (building plot, or parcel of land under agricultural use, or parcel of land set aside from agricultural cultivation), the following aspects should be taken into account and the following steps should be taken in order to enable the land concerned to be subdivided.

Colloquially often referred to as real estate property division, the first step in the process is to establish the ownership of the plot, what the area of the new plots to be created by the subdivision will be (how many m2) and what the purpose of the plot to be subdivided and the buildings on it will be.

In addition, it is also necessary to determine whether the new plots created by the subdivision will have separate direct vehicular access to a road or a private road. If the plots resulting from the subdivision will not have such an access, it will be necessary to provide such an access for the plot concerned. The area providing the road or private road access must be at least 3 metres wide and not longer than 50 metres.

It is then necessary to examine the relevant construction legislation, in particular the local construction regulations, to see whether they allow the plots to be subdivided on the basis of the area, the built-up area, the type of use and the location and other characteristics of the buildings on them.

If it is possible to subdivide the land according to the regulations, a land surveyor with a land surveyor’s qualification or a person with a special qualification in land surveying and cartography as defined in a separate law must prepare a map (land registry plan) of the subdivision, which must be approved (endorsed) by the land registration authority.

When drawing up the land registry plan, the professional carrying out the land surveying will of course also need to check that the criteria described in the previous paragraphs are met for the plot to be subdivided. In addition, the professional will also need to draw up a site plan for land conversion for the new plots to be created by the subdivision.

In addition, depending on how the plot is to be subdivided, it may be necessary to obtain the written consent of the holders of the encumbrances (for example, the universal service providers as holders of the right to utility easement) registered in Part III of the title deeds of the plot to be subdivided.

Once the land registry plan is approved (endorsed) by the land registry authority, the written consents of the potential beneficiaries, the site plan for land conversion and other necessary documents are made available, the plot subdivision procedure for the subdivision of the plot can be initiated and, if successful, the new plots created by the subdivision can be registered as separate real estate properties in the real estate registry.

BALÁZS & KOVÁTSITS Legal Partnership