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The Constitutional Court of the Republic of Slovenia has found that the unregulated state in the land-register of the land on which classified roads had been constructed was brought about by the ineffective implementation of land acquisition procedures. Such encroachment upon constitutionally guaranteed property rights shall be treated as expropriation, and the expropriation obligor shall in general be entitled to a refund or compensation in kind for the expropriated real estate. In the particular case dealt with herein, concerning real estate compensation, the provisions of the Spatial Planning Act (ZUreP-1) shall apply, according to which the compensation shall amount to a real estate value which is to be determined by taking into account the actual use of the real estate in question as well as the extra expenses incurred through expropriation. It has been shown that, taking into account the International Agreement and the Constitution of the Republic of Slovenia, the value of this particular real estate may be represented by its market value only. Concerning this particular case of real estate compensation, this paper analyses in detail all the elements of compensation, in particular, the decreased value of the remaining land. Based on these foundations and having selected an appropriate method, the real estate valuation model for classified roads has been created for the purposes of legal transactions. The difference method selected has been proven appropriate for the implementation of the valuation of classified roads for the purposes of legal transactions, however, for the implementation of valuation within the land acquisition procedure in the entire Republic of Slovenia, certain additional conditions need to be complied.

Real estate valuation model for categorised roads for the purposes of legal transactions