Road compensation – another issue
The firm represents clients in administrative proceedings to determine compensation for the separation of a plot of land for a public road.
The procedure for the acquisition of a plot of land for a public road by the State Treasury or a local government unit is regulated by Article 98 of the Real Estate Management Law. For the land plots thus separated, their owner or perpetual usufructuary is entitled to compensation between him and the competent authority representing the public entity to which ownership of the property has passed.
If no such agreement is reached, at the request of the owner or perpetual usufructuary, compensation shall be determined and paid in accordance with the rules and procedures applicable to expropriation of real estate.
The amount of compensation is determined according to the condition, use and value, of the expropriated property on the date of the expropriation decision. Determination of the amount of compensation is made after obtaining the opinion of an appraiser, determining the market value of the property.
Expert appraisers determine compensation based on a comparison of road property acquisitions. The law firm argues that the valuation method adopted by the experts is flawed because the transactions they compared are not market transactions within the meaning of the Real Estate Law. This is due to the fact that real estate constituting roads ultimately can only be owned by the State Treasury or local government units.
According to the law firm, the value of the property should be determined using the transaction prices of adjacent land with predominant use, which consequently translates into a higher value of compensation.