Practice areas
Real Estate Development
From the land to the sale: spatial planning conditions, permits, land registry permissions and design, construction and sale contracts. Risks removed before they turn into costs.
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How can we help?
comprehensive advice for investors
drafting general terms of sale
drafting and reviewing sale contracts
representation and advice in negotiations
representation and advice on taking over
pursuing and resolving claims for defects, contractual penalties and breach of contract
resolving disputes before the courts
obtaining administrative permits
legalisation of unlawful construction
Real estate projects and permits
Planning real estate projects and ensuring compliance
Advice on spatial planning and legal due diligence on real estate
Running the whole procedure for obtaining a building permit
Legal support and conduct of legalisation procedures for unlawful construction
Drafting all types of real estate contracts and putting the land register in order
Obtaining the operating permit and registering the building in the building cadastre
Representation in administrative procedures and disputes relating to construction and spatial planning
Project simulation
Take a look at the project simulation
Using the Burja residential and commercial building as an example, we show the whole process of developing a real estate project and the key points of risk management across six phases.
Open the simulationTeam
Our people in this area
Urša Žnidaršič
Lawyer – construction, commercial and civil law
Urša Žnidaršič is a lawyer at Potočnik in partnerke Law Firm, working mainly in construction, commercial and civil law. She advises on construction projects and investments and on the drafting and negotiation of contracts. A significant part of her experience comes from working for an investor and developer of construction projects and from many years in a notary's office, which has given her a sound command of property law and of land registry and corporate status procedures.
Questions and answers
Frequently asked questions
What should an investor check before buying land?
Before buying, you should check at the very least ownership and encumbrances, the right to build, access, utility infrastructure, the designated land use, the spatial planning acts and any other restrictions that may affect whether the project can be delivered. The purpose of due diligence is not only to establish who owns the land, but whether the planned investment can actually be carried out on it.
How do you check whether the planned building can be built on the land?
You need to examine the spatial planning act in force and its planning parameters and compare them with the project as actually designed. It is also important to check access, utility infrastructure, the building plot and the other conditions for obtaining a building permit.
What is real estate due diligence?
It is a systematic review of a property before purchase. Besides the position in the land register, it covers spatial planning, technical and, where necessary, environmental questions. Its purpose is to identify the risks that may affect whether building is possible at all, the value of the land, the timetable and the economics of the investment.
What if the spatial planning act does not allow the planned construction?
The first step is to establish whether the project can be adapted to the planning conditions in force. For minor departures a location check (lokacijska preveritev) may be available; for larger ones, an amendment of the municipal spatial plan (OPN) or the municipal detailed spatial plan (OPPN), if the conditions are met. The investor has no guarantee, however, that the municipality will amend the planning act as proposed.
When is a location check appropriate?
A location check (lokacijska preveritev) is intended for the cases laid down by law and is not a substitute for a full amendment of a spatial planning act. On a project it therefore has to be considered against the particular departure, the planned building and the planning act in force. For larger changes, an amendment of the OPN or OPPN may be the route.
What should an investor settle before design work begins?
First, define the project objectives clearly, secure the necessary input material and settle the contractual relationship with the designer. The contract should set out the scope of services, the time limits, payment, liability, participation in administrative procedures and also the investor's rights in the design documentation.
What should a design contract contain?
Besides price and time limits, it should define the actual scope of the design services, the design stages, the input material, the obligations of the investor and the designer, participation in procedures, and the treatment of copyright. On larger projects it is important that the contract also provides for what happens when the design changes and if the engagement is terminated.
What are DGD, PZI and PID?
DGD is the design documentation used to obtain the required opinions and the building permit. PZI is the documentation for carrying out the works and contains the technical basis for execution. PID records the works as actually built and matters when the project is closed out and the operating permit is obtained.
How can an investor protect a project against delay and cost increases?
Risks have to be addressed before the land is even bought and then allocated properly in the contracts. On the land purchase, certain obligations can be tied to conditions precedent; in the design contract, stages and time limits can be fixed; and in the construction contract, the price, variations, additional works, extensions of time and the proof required for claims can all be set out clearly.
At what point should an investor bring a lawyer into the project?
No later than before any binding contract is signed. Legal advice has the greatest effect while a risk can still be prevented or allocated by contract. Once the land has been bought, the contract signed or the dispute has arisen, there are far fewer inexpensive ways out.
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