The International Comparative Legal Guide To: Real Estate - Slovenia

1 Real Estate Law

1.1 Please briefly describe the main laws that govern real estate in Slovenia. Laws relating to leases of business premises should be listed in response to question 10.1. Those relating to zoning and environmental should be listed in response to question 11.1.

The grounds of real estate law are defined in the Constitution. The main law that governs real estate is the Rights in Rem Act. It defines basic principles, possession and rights in rem (as well as the method of their acquisition, transfer, protection and extinguishment). The Land Registry Act is primarily procedural law. Other notable laws include the Agricultural Land Act, the Forest Act, the Water Act, the Housing Act, the Protection of Buyers of Apartments and Single Occupancy Buildings Act, the Act on Reciprocity and the Registering of Real Estate Act.

1.2 What is the impact (if any) on real estate of local common law in Slovenia?

Slovenia belongs to the Roman law based countries. Therefore, the common law has a rather insignificant impact.

1.3 Are international laws relevant to real estate in Slovenia?

Please ignore EU legislation enacted locally in EU countries. International laws are not relevant as concerns real estate law in Slovenia, except for the issue of reciprocity (please see the information given under question 2.1 below).

2 Ownership

2.1 Are there legal restrictions on ownership of real estate by particular classes of persons (e.g. non-resident persons)?

Real estate may be owned by individuals and legal entities. Foreigners may acquire ownership rights to real estate under the conditions provided by law or a treaty ratified by the Parliament. Currently, the only foreigners that can purchase real estate in Slovenia under the same conditions as Slovenians are citizens of the EEA, the OECD and the US. Also persons with the status of Slovenians without Slovenian citizenship can acquire the title to real estate under the same conditions as citizens of Slovenia. On a reciprocal basis, foreigners from an EU candidate country are also entitled to purchase real estate in Slovenia.

3 Real Estate Rights

3.1 What are the types of rights over land recognised in Slovenia? Are any of them purely contractual between the parties?

Apart from rights in rem (ownership, mortgage, land debt, easement, right of encumbrance and building right), obligatory rights are recognised. Obligatory rights on real estate are, inter alia, the right to prohibit alienation or encumbrance, the right to lease or rent, a contractual pre-emption or redemption right and a special right to use a public asset.

3.2 Are there any scenarios where the right to a real estate diverges from the right to a building constructed thereon?

Divided co-ownership (condominium) and building right are the only rights in rem where the principle of superficies solo cedit is not followed.

4 System of Registration

4.1 Is all land in Slovenia required to be registered? What land (or rights) are unregistered?

All real estate is required to be registered. All land is registered. Rights in rem must be registered. Obligatory rights do not need to be registered.

4.2 Is there a state guarantee of title? What does it guarantee?

With regard to the Slovenian Land Registry, the principle of good faith applies. This means that any person acting in good faith in relation to legal transactions and relying on the information entered in the Land Registry regarding rights shall not suffer any detrimental consequences for doing so. There is no state guarantee or insurance for title.

4.3 What rights in land are compulsory registrable? What (if any) is the consequence of non-registration?

Rights in rem must be registered in order to come into the existence. With respect to real estate not yet entered in the Land Registry (some cases of divided co-ownership), the seller proves ownership through the chain of original former deeds, thereby covering the entire period from the respective real estate's construction to the present. In regards to a mortgage on real estate not yet entered in the Land Registry, the conclusion of a directly enforceable notarial deed is equivalent to an entry in the Land Registry.

4.4 What rights in land are not required to be registered?

Obligatory rights are not required to be registered.

4.5 Where there are both unregistered and registered land or rights is there a probationary period following first registration or are there perhaps different classes or qualities of title on first registration? Please give details. First registration means the occasion upon which unregistered land or rights are first registered in the registries.

Not applicable.

4.6 On a land sale, when is title (or ownership) transferred to the buyer?

Title is transferred to the buyer upon its registration in the Land Registry.

4.7 Please briefly describe how some rights obtain priority over other rights. Do earlier rights defeat later rights?

The priority of certain rights over other ones is governed by the ranking as registered in the Land Registry. The right that has been registered earlier in the Land Registry has priority in ranking over the right registered at a later date.

However, some rights are not registered in the Land Registries (e.g. statutory pre-emption rights). The main rule is that, in the event of conflict between a statutory and contractual right, the statutory right shall prevail.

5 The Registry / Registries

5.1 How many land registries operate in Slovenia? If more than one please specify their differing rules and requirements.

Slovenia has one Land Registry. It is a book of public record and contains information on property rights and legal title. The Land Registry is computerised.

5.2 Does the land registry issue a physical title document to the owners of registered real estate?

The Land Registry issues an order on registration of a title; however, it does not rely on this document; a person acquires a title only when registered.

5.3 Can any transaction relating to registered real estate be completed electronically? What documents need to be provided to the land registry for the registration of ownership right? Can information on ownership of registered real estate be accessed electronically?

The entry in the land register is completed electronically...