Prague - President Václav Klaus signed an amendment to the law on Monday that aims to simplify and reduce the costs of expropriating land for the construction of roads and highways. The regulation divides the expropriation process into the actual expropriation and the proceedings regarding compensation for the expropriated property. If a landowner files an objection to the expropriation, it will have a suspensive effect. However, if they only object to the determined price, then there will be no suspension. According to the minister, the process of determining compensation can thus be resolved separately. The state could save billions of crowns annually through this legislative change. The amendment, for example, changes the method of determining the amount of compensation for expropriation. Until now, the expropriated had the assurance that they would receive at least 420 crowns per square meter. Now, the amount should be determined based on the actual state of the land at the time of its valuation for expropriation. Before expropriation, the investor will be able to propose a price to the landowner that is up to 100 percent higher than its current value. The amendment should thus prevent the state from purchasing land at unreasonably high prices. The law also provides that no lease rights will be extinguished by expropriation, regardless of the subject of the lease. According to the proposal, rights in rem and subordinate rights will continue to be extinguished only if the expropriation deprives the ownership rights to the land and buildings burdened by them.
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