The normative significance of the valuation report in light of the resolution on disposing of real estate under a “premises in exchange for land” settlement

With effect from 1 April 2021, the Act of 16 December 2020 on Disposing of Real Estate under a “Premises in exchange for Land” Settlement entered into force. This act introduced a new model of trading in real estate owned by communes and districts, which allows for a non-monetary settlement of part of the transaction. Article 4(1) of the act identifies the first step necessary to manage local government’s real estate, which involves adopting a resolution by the competent constituting body on disposing of real estate under a “premises in exchange for land” settlement. However, crucial for the present study is paragraph 2 of the said article. According to this provision, a draft resolution specifying the rules for disposing of real estate under a “premises in exchange for land” settlement shall include a valuation report determining the value of such real estate, drawn up by a property valuator not earlier than three months before submitting this draft resolution to the council. In the author’s opinion, two research problems are associated with the current content of Article 4(2), pertaining to 1) the impact of the validity period and purpose of the valuation report on the defectiveness of the resolution; 2) the consequences of integrating the valuation report with the content of the draft resolution that lays down rules on disposing of real estate under a “premises in exchange for land” settlement in terms of copyright matters. The dogmatic method was used during the research.