The so-called occupancy right as a socially restricted real right

There were only two types of ownership of real property in the former Yugoslavia and the Republic of Bosnia and Herzegovina: private and social ownership. Most occupants had occupancy rights over socially owned apartments located mostly in town areas. This occupancy right was individualised in accordance with the Law on Housing Relations.¹⁷⁵² Therefore, first the employees and workers of socially owned companies or State authorities were the ones who could acquire the occupancy right by paying monthly contributions to the housing fund. Depending on a number of factors – family situation, housing needs (whether the individual has a private apartment or house), etc. – an apartment was allocated to the individual but he/she acquired the occupancy right only by lawfully moving into the apartment (based on the decision on allocation of the apartment) and by concluding a contract on use of the apartment. The legal status of the occupant who had the occupancy right was inferior to the legal status of the owner of the apartment but largely superior to the legal status of a lessee. As a social ownership, the occupancy right was a right socially limited to tenancy. In addition to this, the right to an apartment depended to a large extent on the need of the occupant but also on whether the apartment was really used – which in a way also proved the needs of the occupant. After the death of the occupancy right holder, the occupancy right used to be transferred to the first relative. If the relatives could not reach an agreement on the legal successor, the court would decide it taking into account the real needs of the interested parties. The occupancy right was an inalienable right and was not subject to disposal. However, two occupancy right holders could, for example, exchange their apartments. If an occupant left the apartment for a long period of time, the occupancy right would cease to be in effect. In the privatisation process which had started before the war, the occupancy right holders had privileged status while purchasing the apartments (privatisation) over which they had the occupancy right and in which they lived. In that case, certain items would be deducted from the purchase price as contributions to the housing fund – so that in certain cases the entire purchase price would be subtracted. Given such form, the occupancy right could be called a socially restricted real right.