The formalization of illegal occupation entails that steps are undertaken provided by law, regulations or policy to change the listing status from an illegal occupation into a legal one. By doing this, the person or entity occupying the terrain will acquire the right to use the terrain, and will also be officially registered, which will open the way for the government to collect payment for the use of the terrain and to collect taxes (OZB).

According to the New Policy, an effort will be made to accelerate the formalization of illegal occupations which have a construction on them, in cases that these construction where in place before the ‘baseline’. However if the law, regulations or policy do not offer possibilities to formalize, no formalization will take place. In these cases the constructions will be bulldozered.

From neighborhood to neighborhood

The accelerated formalization will take place from neighborhood to neighborhood. During information sessions people who illegally occupy a government terrain will have the opportunity to report themselves voluntarily and to petition formalization before a stipulated deadline.

No voluntary report

If a person who occupies a government terrain illegally doesn’t report himself voluntarily, actions will be taken against them. Furthermore, additional costs will be charged.

Temporary rental contract

If formalization is possible, a temporary rental contract will be signed. Later on, the person will be eligible to obtain rights of leasehold. The amount to be paid for the temporary rent, will be determined when the temporary rental contract is signed.

If a person reports voluntarily and petitions formalization, after the temporary rental contract has been signed, no compensation will be charged retroactively. However, if a person does not report voluntarily, retroactive compensation will be charged from the moment the illegal occupation started up to a maximum of 5 years.