Transfer of Property Act at Albania
Albania does not have a separate legal framework specifically titled the "Transfer of Property Act" like some other countries, but the transfer of property in Albania is regulated by its Civil Code, particularly under the sections dealing with property law. The Civil Code of Albania governs the rules for the transfer of rights over movable and immovable property, as well as the legal principles surrounding property ownership and contracts.
Key Points Regarding the Transfer of Property in Albania:
1. Legal Framework:
Civil Code of Albania: The primary legal source governing property rights and their transfer is the Civil Code of Albania, which was originally enacted in 1994. It regulates issues related to the ownership, sale, purchase, and transfer of property. The Civil Code draws heavily from civil law traditions and aligns with European property law norms.
Special Legislation: In addition to the Civil Code, specific laws or regulations may exist to govern the transfer of certain types of property, such as agricultural land, real estate transactions, or intellectual property.
2. Transfer of Immovable Property:
Sale and Purchase Agreement: The sale and purchase of immovable property (real estate) in Albania is typically executed through a written contract, which must be notarized in the presence of a notary public. This step is crucial for the transfer of ownership to be legally valid.
Registry: Once a sale agreement is concluded, it must be registered with the National Register of Immovable Property (Kadastri). The transfer of ownership only becomes effective upon registration. Registration ensures that the transaction is recognized by the state and protects the buyer’s ownership rights.
Due Diligence: Before transferring property, buyers are required to conduct due diligence by verifying that the property is free of encumbrances (like mortgages, liens, or other claims). This is done by checking the official records at the property registry.
Taxes and Fees: The buyer is usually responsible for paying the relevant registration fees and transfer taxes associated with the property transaction. The tax on property transfers is generally a percentage of the sale price or the cadastral value of the property.
3. Transfer of Movable Property:
Transfer of Ownership: The transfer of movable property (such as vehicles, goods, and other personal property) in Albania is generally done through delivery and agreement. If the transfer involves valuable goods or assets, a written contract or deed may be used to record the transaction.
Possession and Title: Ownership of movable property typically transfers when possession is delivered, and the parties have agreed to the transfer. In certain cases, such as with vehicles, the transfer may require registration with the relevant authorities (e.g., the vehicle registry).
Contracts for Transfer: The Civil Code outlines the basic rules for contracts involving movable property, including sales agreements, gift transfers, and other forms of property transactions.
4. Legal Requirements for Valid Transfer:
Consent: For any property transfer, the consent of both parties (the seller and the buyer) is required. The agreement must be entered into voluntarily without coercion.
Legal Capacity: Both parties involved in the transfer must have the legal capacity to enter into a contract (e.g., they must be of legal age and have mental competence).
Formality: Certain transfers of property, particularly immovable property, require specific formalities (e.g., notarization and registration with the appropriate public authorities).
5. Gift and Inheritance:
Gifts: The transfer of property by gift (without consideration) is allowed under Albanian law, but it also must be formalized in writing. Gifts of immovable property must be notarized and registered with the National Register of Immovable Property.
Inheritance: Property transfer by inheritance is governed by the provisions of the Civil Code of Albania. When someone dies, their property is transferred to their heirs according to the rules of intestate succession or testamentary succession (if there is a will). Inheritance requires formal procedures, including the registration of the deceased's property and the issuance of succession certificates.
6. Land Ownership and Restrictions:
Foreigners and Land Ownership: There are restrictions on foreigners owning land in Albania, though foreign entities can own land through partnerships with Albanian citizens or companies. However, laws may vary regarding specific regions, especially agricultural land or strategic properties.
Land Reform and Restitution: In the 1990s, Albania underwent a significant process of land reform and property restitution to return land to people whose property was nationalized or confiscated during the communist era. This process created some complexities in property titles, but efforts have been made to clarify and restore property rights.
7. Dispute Resolution:
Courts and Mediation: In case of disputes regarding property transactions, the court system in Albania handles claims related to property ownership and transfer. The Albanian Civil Code sets out the legal remedies available to individuals who face challenges in property transfers, including mediation, litigation, and court orders to resolve disputes over property rights.
Enforcement of Property Rights: In cases where one party refuses to honor a property transfer, the aggrieved party may seek judicial enforcement through the courts to enforce the transfer or secure compensation.
Conclusion:
The transfer of property in Albania is regulated by the Civil Code, with procedures in place for both immovable and movable property transactions. Property transfers must typically be formalized with written contracts, notarization (for immovable property), and registration with the appropriate authorities. Legal requirements such as consent, formalities, and registration ensure that the property transfer process is clear, transparent, and enforceable.
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