Estonian realtors: Problems with register of construction works blocking business

  • 2022-06-21
  • BNS/TBT Staff

TALLINN – The Association of Real Estate Companies of Estonia (EKFL) has sent a letter to the Ministry of Economic Affairs and Communications highlighting problems with the introduction of the updated digital platform of the register of construction works on May 30, which, according to the businesses, has significantly undermined their economic activities.

Among other things, the businesses want to know whether the state will compensate them for the financial damage caused by the problems related to the processing of authorizations.

The association points out that due to problems with the register of construction works, the processing of building permits and authorizations for use has proven to be extremely difficult, often impossible. Affected in particular were the procedures that had reached the final stage just before May 30, as for many procedures data had not been transferred to the new register or had been lost altogether. In the latter case, the whole process needs to be gone through again.  

According to the businesses, the information published in a press release by the ministry on June 14, suggesting that most of the problems have been resolved, is incorrect. The association notes that a message has now appeared in the register of construction works confirming the persistence of the errors and that it may take weeks to eliminate them. 

In connection with the above, the association wants to know what the ministry has done to resolve the situation and what alternatives are envisaged for the authorizations process.

Businesses also want the ministry to say whether and how the state intends to compensate real estate companies for the damage they have suffered and will suffer. By damages, the businesses mean lost revenue, as well as contractual penalties and interest on late payments related to construction contracts, increases in construction prices, sanctions by banks for delayed occupancy of sold buildings for which authorizations for use could not be obtained, and the like.