Property Law (Reforms to Articles 75-77-126)

The University Council, in the exercise of its powers in accordance with the Organic Law and its Regulations, once this reform enters into force, must adapt the General Regulation of the Organic Law and other internal regulations related thereto, with the quorum required by law for amendment of regulations and, if the full composition of its members persists in not being formed due to temporary impediment, shall form the quorum of qualified majority with two-thirds of its present and voting members.

This Decree shall enter into force on the day of its publication in the Official Gazette La Gaceta. Given in the City of Tegucigalpa, municipality of the Central District, in the Sessions Hall of the National Congress, on the twenty-first day of the month of March of two thousand thirteen. MAURICIO OLIVA HERRERA PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY GLADIS AURORA LÓPEZ CALDERÓN SECRETARY To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., March 22, 2013. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE DEPARTMENTS OF INTERIOR AND POPULATION. CARLOS ÁFRICO MADRID HART Legislative Branch (DECREE No. 205-2012) THE NATIONAL CONGRESS: WHEREAS: By means of Legislative Decree No. 82-2004, dated May 28, 2004, the National Congress issued the Property Law. WHEREAS: The Constitution of the Republic and the secondary laws that served as a framework for the issuance of the Property Law have undergone various reforms. WHEREAS: It is necessary to adapt the Property Law to the new legislative reality and incorporate new provisions that contribute to solving the economic and social problems of the country. THEREFORE, IT DECREES:

Amend Articles 75, 77, and 126 of the Property Law contained in Legislative Decree Number 82-2004, which shall be read as follows: "ARTICLE 75- Natural persons who are occupying rural or urban parcels located on national or fiscal lands for a continuous period of not less than ten (10) years shall be titled to the same by the Property Institute (IP), provided that they are not comprised in spaces of public domain or other affects of common benefit or for reasons of public utility. This latter provision shall be applicable to the titling contemplated in the preceding Article.

The regularization of real property in which human settlements established before December 31 of the year 2010 are located is of public necessity, and in which the ownership thereof cannot be clearly established or disputes exist among third parties who are not owners of the real property with respect to its dominion. The procedure set forth in this section may not be applied to subdivisions or housing projects duly constituted in compliance with the requirements demanded by the Law.

The Titles issued by the Property Institute (IP) as a result of regularization processes shall be exempt from payment of all kinds of taxes, fees, and formalities for their registration. The same shall be issued through the use of standardized forms without the assistance of a Notary, except for subsequent acts or contracts derived from the same; however, in cases of Regularization for reasons of public necessity and in cases in which the settlers to be benefited with the Property Titles are in a dependent situation, Titles may be issued with Mortgage in favor of the fiduciary that guarantees payment of the respective indemnification.

Amend by addition a numeral to Article 5 of the Property Law, contained in Decree Number 82-2004, which shall be read as follows:

The Property Institute (IP) has the following attributions and duties: 2... 3... 4... 9... 10... 11... 12... 13... 14... 15...; 16. Design, define, and implement through regulatory means a complete special labor regime for the employees of the Property Institute, which shall include, among other aspects, its own structure of positions and salaries, the definition of profiles, functions and attributions of its servers, the processes for their selection, appointment, removal, and even the application of alternative means of dispute resolution prior to the initiation of judicial actions before the Courts of the jurisdiction of Administrative Contention; and, 17. Such others as the law and its regulations may provide.

Restore the validity of Articles 91 and 92, which were repealed by Article 921, numeral 4) of the Civil Procedural Code contained in Legislative Decree Number 211-2006, which in their new wording shall be read as follows:

The acquisitive prescription of real rights over private real property may be declared by the Property Institute (IP) ex officio or at the request of a party when the extremes established in the Civil Code are proven. Possession shall begin to count from the moment the material apprehension of the real property occurred publicly with intent to own. Ex officio proceedings may only be carried out when they benefit a community and serve as the basis for the division of a property of greater extent. The petitioner must prove the extremes of the request by any means of proof recognized by Honduran law without prejudice to the Property Institute (IP) conducting such investigations as it deems pertinent until issuing the corresponding resolution. The request for declaration shall be published in a newspaper of national circulation and local radio media twice with intervals of 15 days and notices that shall be posted in the most frequented locations of the place where the real property is located at the cost of the petitioner so that any interested party may file opposition within the period of fifteen days counted from the last publication. Only those who may present opposition to this request are:

• 1)

  Those in quiet, peaceful, public, and uninterrupted possession of the real property by themselves or by a third party on their behalf, performing positive acts of those to which only ownership gives right, such as cutting timber, construction of buildings, erection of fences, planting of crops, and others of equal significance executed without the consent of third parties who may have claims of ownership over that real property;

• 2)

  Those who can demonstrate intent to own by proving the payment of taxes on real property, the performance of acts of strict ownership or similar; and, 3. Those who have title to the real property registered on it. In all proceedings initiated ex officio or at the request of a party, one or more signs shall be placed, according to the extent of the real property, within the property that is intended to be acquired by prescription announcing the interest in declaring it. In proceedings initiated at the request of a party, three (3) different notarial deeds must be drawn up, with a different notary for each deed: the first at the moment the first notice was published, the second at the moment the second notice was published, and the third at the moment of expiration of the opposition period. In all of them evidence must be given regarding the presence or absence of the signs mentioned in the preceding paragraph and it must be indicated who is in material possession of the real property. Even if no opposition is presented, if there are third parties in possession of the real property, the request shall be denied and the National Agrarian Institute, the competent Court, and the respective municipality shall be informed so that they refrain from titling that real property in favor of the petitioner. Upon expiration of the opposition period, the Property Institute must issue the corresponding Resolution, which shall serve as title for its registration in the Property Registry.

If opposition is filed within the referenced period, the Property Institute shall remit a certified copy of the entire file to the competent Civil Court so that the parties may resolve their controversy.

Repeal the second paragraph of Article 32 of the Property Law contained in Legislative Decree No. 82-2004.

This Decree shall enter into force from the day of its publication in the Official Gazette La Gaceta. Given in the city of Tegucigalpa, municipality of the Central District, in the Sessions Hall of the National Congress, on the nineteenth day of the month of December of the year two thousand twelve. LENA KARYN GUTIÉRREZ ARÉVALO PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY GLADIS AURORA LÓPEZ CALDERÓN SECRETARY To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., December 20, 2012. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE DEPARTMENTS OF INTERIOR AND POPULATION. CARLOS ÁFRICO MADRID HART