Construction Servitude is an Anglo American approach to the property law which has been wide spread on the worlds today. Construction Servitude is an individual’s title right on a land where a property will be constructed or already been constructed but not completed yet. By the Construction Servitude the owner of the title bear the right of ownership on one of the floors that are planned to be raised on the land backed up by register of deeds.
The modern practice of the Construction Servitude is no different. When a building is to be constructed on a land, firstly the construction company develops a construction project as per the zoning status of the land. Upon the construction project is approved by the related municipality, construction company starts the construction.
After the completion of the basement and sub-basement construction company becomes eligible to obtain Construction Servitude and accordingly gain right to deliver property ownership by register of deeds for the floors to be built on the land prior to the actual construction of those.
The main importance of the Construction Servitude is that once the Construction Servitude right have been obtained, the property which haven’t been developed yet, becomes eligible for bank loan. In other words, sales in a project can only be started once the construction is reached to a level that is suitable for Construction Servitude. As soon as the building is reached to Construction Servitude level, on can get a bank loan from a bank for a building that hasn’t been actually constructed without an actual register of deeds.
