ANALYSIS OF THE IMPLEMENTATION OF LAWS ON THE TRANSFORMATION OF THE RIGHT OF PERPETUAL USUFRUCT INTO OWNERSHIP

The right of perpetual usufruct is one of the basic forms of public property management that bringssystematic revenue to public entities. Before 1989, perpetual usufruct was practically the only possibilityfor natural persons to acquire public lands in cities. The changes of the political system triggered discussionson the legitimacy of this law, especially with regard to residential areas. Currently, there are twoacts in force that regulate the transformation of the right of perpetual usufruct into full ownership title –The 2005 Act on transformation of the right of perpetual usufruct into ownership of real propertiesand The 2018 Act on transformation of the right of perpetual usufruct of land developed for housingpurposes into ownership of this land.The aim of this research paper is a comparative analysis of the principles of transformation underthe current procedure and pursuant to the Act of 2018, as well as the assessment of the scopeof the implementation of the transformation process and the financial consequences for local governmentunits and the State Treasury. Detailed research studies have been carried out on the exampleof a selected city based on the analysis of the proceedings carried out under the previous laws and onspecifying the number of real properties and perpetual users covered by the transformation by virtueof law under the amended legislation, as well as the problems associated with the transformation fee.