Registration of Real Estate
Restriction on Acquisition of Land by Foreigners
Restitution and Compensation

Registration of Real Estate

Pursuant to the Law on the Registration of Real Estate (7843), real estate must be registered with the relevant register. These registers are open to the public. All administrative units are under the jurisdiction of an office of real estate registration, which keeps and administers the Real Estate Register. The offices of real estate registration are supervised by the Central Office of Real Estate Registration, which is governed by the main and vice registrars (who are appointed by the Council of Ministers).
The Real Estate Register contains all the details of the real estate - that is:

• the identity of the owner;
• the limits of the property;
• the date of registration;
• the deed of ownership; and
• plans showing the location of property.

Moreover, all leases, mortgages, assignments of easements, rights to use or other rights connected to or deriving from the transfer of real estate to a third party must be noted in the register; any contract or other instrument affecting these transactions should be filed with the competent office of real estate registration within 30 days of its execution.

Real estate registered for the first time will be subject to temporary registration. The competent office shall publish the act of temporary registration for 90 consecutive days.

During this period, interested persons may file a claim for correction of any eventual mistakes. No claim submitted after the expiry of the 90-day term will be considered. Where no claim has been submitted within this period or any claim has been settled by the parties, the property under temporary registration will be classified as permanently registered. Where the parties have failed to agree on a solution, the competent court will be authorized to rule on the case. The registrar shall note any pending actions in the register and indicate which court is hearing the case.
Restriction on Acquisition of Land by Foreigners
The Civil Code provides that no real estate transaction may take place if the real estate is not registered with the Real Estate Register. The acquisition of real estate (eg, acquisition of plots by foreigners) is restricted by the Law on the Acquisition of Plots (7980).
Pursuant to the law, foreign entrepreneurs or legal entities may acquire plots in Albania only if the investment for construction on the plot exceeds three times the value of the plot.
Restitution and Compensation
The Albanian courts deal with a considerable number of real estate disputes. Most disputes arise between investors and former owners to which the Committee of Restitution and Compensation of Property has restituted land that the Albanian government had leased long term to investors or otherwise disposed of.
Real estate used to be under public property, but in 1993 Parliament passed the Law on the Restitution and Compensation of Properties to Former Owners (7698). The law provides that the government - through the Committee of Restitution and Compensation of Property to Former Owners - acknowledged the ownership, would compensate and, where possible, restitute to former owners property that had been confiscated or expropriated under laws, subordinated laws or court resolutions issued after November 29 1944. The process of restitution and compensation of immovable property is still ongoing. This has led to an increase in costs for investors, as the law provides that investors should buy or lease the land from the former owner under the terms and conditions agreed by the parties.

For further information please contact Sokol Elmazaj at Boga & Associates by telephone (+355 4 251 050) or by fax (+355 4 251 055) or by email (elmazi@bogalaw.com).

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