Analysis of the consequences of concluding an agreement for the transfer of real estate by a municipality to a water company for use free of charge and of the impact on ownership rights and property consequences for both entities

Abstract

Objectives The functioning of water companies is not given much space in the doctrine, especially in the context of the acquisition of property rights and mutual relations between the municipality and the water company. Misinterpretation of the legal conditions of a water company can lead to the implementation of legal actions that cause irreversible property consequences for both parties. At this point it is worthwhile to analyse the effects of a legal action consisting in the transfer of real estate by a municipality for free use to a water law company. Material and methods The study was carried out using a dogmatic-legal method in order to determine the legal status of an entity of a water company under the current legislation. Results The findings in this regard allowed to answer the question: does the transfer of a municipality's assets to a water company for use free of charge for an indefinite period of time constitute a transfer of ownership rights? An analysis was made of the consequences of concluding an agreement for the transfer of real estate by a municipality to a water company for use free of charge and of the impact on ownership rights and property consequences for both entities. Conclusions The transfer of a municipality's property to a water company for use free of charge for an indefinite period does not constitute a transfer of ownership. An agreement to transfer real estate by a municipality to a water company for use free of charge is invalid. Assets transferred to a water companyon the basis of an agreement of free-of-charge use for an indefinite period of time do not constitute fixed assets of the water company.

Keywords

• water law
• municipality
• fixed assets
• water law company
• free use
• municipality assets