Dr. Manfred Ton und Dr. Peter Vcelouch, Cerha Hempel Spiegelfeld Partner

Risks when dealing with property in CEE countries

Along with Cannes' MIPIM and Munich's Expo Real, the Real Vienna has become an essential meeting point for real property. As to the risks when dealing with real property in CEE countries, Hungary, Slovakia and the Czech Republic are very advanced and are well-established on the European market. As far as reliability in Romania, Bulgaria, Russia and the new EU states is concerned, caution is advised, e.g. in the context of restitution claims. Dealings with authorities are important; however, discrepancies between the legal situation and the actual handling of the laws are frequent. Furthermore, there is a clear difference between the legal position of CEE countries that have already joined the EU and those that have not. In Belarus, regulations are not enacted by the parliament, but upon a decision by the president, which renders legal certainty unreliable. Therefore, when dealing with real property, legal assistance acting upon international standards is essential