Off-plan buyer in a confiscated or seized building? What the new law changes

Many new apartments in Albania are sold before the building is finished, on an off-plan ("porosi") contract. That works well until the day the building is confiscated as unpermitted construction, or seized by prosecutors in a criminal case. On 2 September 2026, the government approved a draft law changing the rules for confiscated buildings and, for the first time, giving off-plan buyers a route to the property itself, not just a financial claim. Here is what changes, who is protected and what to check before you pay.

Cover photo: Mr Catographer / Unsplash

Fund from selling confiscated buildings, to finish works and compensate buyers

€3.5m

Further income expected from developers' payments

€9m

Seized and confiscated apartments managed by AAPSK, according to Monitor

€50m

Assets managed by AAPSK, according to August 2026 data

345

Two different situations: confiscation and seizure

Before looking at the law, it helps to separate two cases that are often confused:

• Confiscation as unpermitted construction. When a building breaches its permit, for example with extra floors, the state can confiscate it. These buildings fall under Law no. 66/2023 on the administration of buildings confiscated as unpermitted constructions for public interest or social housing. This is the law the government is now amending.
• Seizure in a criminal investigation. When the Special Prosecution Office (SPAK) investigates a developer or the people financing it, a court can seize the building or apartments as a precautionary measure. These assets are managed by the Agency for the Administration of Seized and Confiscated Assets (AAPSK), but their fate is decided in the criminal case.

In both cases, a buyer who has paid can be left for years without the keys.

What the 2 September draft changes

According to Monitor, Hashtag.al and Top Channel, the draft amending Law 66/2023 brings these main changes:

• AAPSK takes over the administration of confiscated buildings, replacing the commission and implementation unit that previously managed them under the ministry responsible for the economy.
• Off-plan buyers are recognised. The financial obligation towards third parties who paid the developer is recognised if the contract was signed before a notary and registered with the State Cadastre Agency (ASHK) before the confiscation date, and if the payment was made through a bank.
• Ownership, not just money. According to Top Channel, once the building is completed and registered, the agency approves the transfer of ownership of the units to buyers and landowners in line with their contracts with the developer.
• Exceptional legalisation. Where the structure is complete but breaches its permit, and the units are held by third parties with notarised contracts, the building can be legalised under Law 20/2020. This excludes cases where the landowner is also the developer, contractor, supervisor or inspector.
• A working group at AAPSK assesses buildings and obligations towards buyers case by case, with licensed experts.
• A dedicated fund pays for completing the works and compensating third parties, financed by sales of buildings, the state budget and donations.

According to Monitor, the draft has 26 articles and takes effect 15 days after publication in the Official Gazette. According to JavaNews, occupants who voluntarily declare unpermitted buildings to the Territorial Development Agency (AZHT) within six months of entry into force gain a right of pre-emption.

Photo: Marie Volkert / Unsplash

What about apartments seized by SPAK?

The draft does not resolve criminal seizures. According to Monitor, in August 2026 AAPSK was managing seized and confiscated residential assets worth about €50 million. Lawyers interviewed explain that a good-faith buyer does not automatically lose their rights when a property is seized, but must prove with bank records and a contract that the transaction was lawful. Notary Fatmir Laçej points out that almost 90% of projects in Tirana are financed by buyers through contracts, which makes this a far wider problem than a handful of isolated cases.

The practical problem is time. Lawyer Aigest Milo, a partner at Kalo & Associates, told Monitor that good-faith buyers often wait for years because court proceedings move slowly.

As a solution, Milo proposes staged payments tied to the real progress of the works and verified by a third party, or blocked (escrow) accounts that release buyers' money to the developer only after certified stages are completed, as well as bank or insurance guarantees.

How to protect yourself before buying off-plan

The new law helps only those who did everything by the book: a notarised contract, registration with ASHK and payment through a bank. So these are not formalities; they are your main protection.

For more practical steps, read our guide on buying an apartment off-plan and our article on more building permits but less value.

Frequently asked questions

Sources

• Monitor: Government amends the law on confiscated buildings, how off-plan buyers will be protected (in Albanian), 2 September 2026
• Hashtag.al: Government amends the law on confiscated buildings (in Albanian), 2 September 2026
• Top Channel: Draft law on confiscated buildings, AAPSK takes over administration (in Albanian), 2 September 2026
• Monitor: Draft on confiscated buildings in Parliament, fund for works and buyers reaches €3.5m (in Albanian), 10 September 2026
• Monitor: €50m of seized apartments, what happens to buyers (in Albanian), 1 August 2026
• Monitor: Off-plan buyers of seized property will be caught in a justice ping-pong (in Albanian), 1 August 2026
• JavaNews: Unpermitted buildings, government amends the law, occupants gain a pre-emption right (in Albanian), 10 September 2026