Đorđe Dimitrijević, counsel at Dimitrijević & Partners, wrote an article for CEE Legal Matters titled “Mortgage Extension to Subsequently-Built Objects in Bosnia and Herzegovina”.

While local courts have been taking the stance that mortgage over the land does not extend to objects subsequently built on the mortgaged land, in one recent case, the Supreme Court of Republika Srpska (RS Supreme Court) took an entirely opposite one. Applicable laws support the stance of the RS Supreme Court. Clear treatment of this issue by the courts is important for both mortgage creditors and buyers of subsequently-built objects.

According to Đorđe, the laws of the RS, FBH and BD incorporate the Roman legal principle according to which the legal status of buildings and the land on which they are built should be the same. Consistent application of this principle means that in case the land is mortgaged, the building built on that land will also be mortgaged. There are only a few exceptions to this principle (eg in the case of a given concession and in the case of building rights established on the land in question).

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