Step-by-step Guide Buying Real Estate in Croatia
Igor Katušić, Tuesday, 19 November 2013
This article is part of a series of 8 articles about buying property in Croatia. The other articles in the series cover the following topics:
To make the process of buying the real estate in Croatia as easier for you as it can possibly be; we made this Step-by-Step Guide for you to find your way around without any waste of time – once you start the process.
Now, we’ll presume that you’re about to buy a real estate in Croatia and would like to do that with the bank loan – which is a possible option in Croatia if you are of age and in a good financial standing. If you are about to make the purchase with cash; simply skip the part which explains the bank related procedures of the deal.
First things first – choose a good real estate agent and familiarize him or her with the specifics of the suitable property for you. Once that is done, and you made your final decision – the buying process can start.
1. Check the Documentation of the Property
Note the ID number of the property found in the Ownership Certificate, owner gave you for a review. Go to the local Land Registry and pick the Land Registry Entry for the targeted property. You’ll speed up the process if you visit the official e-land registry website and enter the property’s ID number from the Certificate. The address is: https://e-izvadak.pravosudje.hr/pretraga-zk-ulozaka.htm
Print it out and show it the clerk – this will make easier for the clerk to locate the proper Entry.
Once you get your copy, cross-check the stated and make sure that the seller is really an owner of the property. A good real estate agent will make sure about that prior to advertize the real estate on the market.
If you are about to buy an apartment in a newly built building check the following: · Is the seller a rightful owner of the property?
· Does the number of apartments correspond to the number stated within the Building License?
· Do measures of the object correspond to those within the Building License?
· Does it all add up with the information provided to you by the seller?
· Is the Occupancy Permit issued for the property?
Next step is to visit a County Civil Court, the Land Registry Office and check the records for the targeted property. You want to make sure that there are no restrictions in a form of the legal registered notes which could potentially prohibit the transfer of the ownership later on.
2. Sign a (Pre)Sales Contract
Under the presumption that everything is in order, time has come to sign the Contract. Make sure that the Contract contains the part where the seller (owner) is unconditionally agreeing to allow the transfer of the ownership – it’s the important part of the contract and it will save you some time later in the process.
3. Verify the Sales Contract at the Public Notary’s office
Public Notary will check the regularity of the deal itself and the validity of the Contract. Only when the contract is verified by the Notary, it becomes a legal document and allows you to transfer the ownership.
4. Mortgage Process
With all the papers, previously requested by the bank when establishing your financial status, and:
The next step will be done by the bank where they will initiate the process of property’s value assessment which will be the base of your future loan.
When everything is done, bank will make six (6) copies of the contract along with the official request to be entered in the Land Registry Entry of the property for the mortgage purpose.
5. Notary Solemnization Process
You and the seller will now go to the Public Notary’s office and solemnize every copy of the contract. Solemnization is the process where Notary checks if the Sales Contract’s details correspond to all evidences and checks the validity of the Contract by making sure all relevant elements exist in it.
6. Land Registry Office
With the solemnized contract you will then go to the Land Registry Office (County Civil Court) and file the request for the mortgage in favor of the bank. You’ll receive the official ID of your case which will enable you to track the process online. It usually takes 2 weeks for the process to end. When the process is done, you’ll take the new Land Registry Entry with the mortgage details stated within and go back to the bank.
7. Arranging the Payment Details with the Bank and Transfer of the Funds to the Seller’s Account
In your bank you’ll arrange all the details and make the transfer of the funds to the seller’s account.
8. Post Payment Procedure
Once the payment has been made, the seller has to give you the Intabulandi Clause statement, verified by the Public Notary if there isn’t one already within the Sales Contract. That’s the statement which will allow you to transfer the ownership of the property.
Make sure to create a record of the current condition of the property (note the status of the counters for the gas, electricity and water). Enter any defects and make sure that seller sign that document.
9. Ownership Transfer Protocol
Even so you payed for the property and have the keys you’re still not the rightful owner; at least until you transfer the ownership. File the request in the Land Registry Office and attach the Sales Contract and every other document they request. It will cost you 250 KN and it has to be payed prior to filing the request.
10. Real Estate Transfer Tax
Now it’s time to visit the Tax Administration Office and pay the 5 % tax for the real estate transfer. Tax Administration will assess the value of your property and will issue you the request to pay the tax. Remember, you have 30 days to file this report to the Tax Administration Office and 15 days to pay it; once you receive the payment request.
11. Transfer the Ownership for the Electricity, Gas, Water and Everything Else to Your Name
This is time consuming process but it has to be done. There is no easy way to do this; you’ll have to visit each company separately and file the request for the ownership transfer.
This is it – you are now a rightful owner of a real estate in Croatia.
This article is part of a series of 8 articles about buying property in Croatia. The other articles in the series cover the following topics:
To make the process of buying the real estate in Croatia as easier for you as it can possibly be; we made this Step-by-Step Guide for you to find your way around without any waste of time – once you start the process.
Now, we’ll presume that you’re about to buy a real estate in Croatia and would like to do that with the bank loan – which is a possible option in Croatia if you are of age and in a good financial standing. If you are about to make the purchase with cash; simply skip the part which explains the bank related procedures of the deal.
First things first – choose a good real estate agent and familiarize him or her with the specifics of the suitable property for you. Once that is done, and you made your final decision – the buying process can start.
1. Check the Documentation of the Property
Note the ID number of the property found in the Ownership Certificate, owner gave you for a review. Go to the local Land Registry and pick the Land Registry Entry for the targeted property. You’ll speed up the process if you visit the official e-land registry website and enter the property’s ID number from the Certificate. The address is: https://e-izvadak.pravosudje.hr/pretraga-zk-ulozaka.htm
Print it out and show it the clerk – this will make easier for the clerk to locate the proper Entry.
Once you get your copy, cross-check the stated and make sure that the seller is really an owner of the property. A good real estate agent will make sure about that prior to advertize the real estate on the market.
If you are about to buy an apartment in a newly built building check the following: · Is the seller a rightful owner of the property?
· Does the number of apartments correspond to the number stated within the Building License?
· Do measures of the object correspond to those within the Building License?
· Does it all add up with the information provided to you by the seller?
· Is the Occupancy Permit issued for the property?
Next step is to visit a County Civil Court, the Land Registry Office and check the records for the targeted property. You want to make sure that there are no restrictions in a form of the legal registered notes which could potentially prohibit the transfer of the ownership later on.
2. Sign a (Pre)Sales Contract
Under the presumption that everything is in order, time has come to sign the Contract. Make sure that the Contract contains the part where the seller (owner) is unconditionally agreeing to allow the transfer of the ownership – it’s the important part of the contract and it will save you some time later in the process.
3. Verify the Sales Contract at the Public Notary’s office
Public Notary will check the regularity of the deal itself and the validity of the Contract. Only when the contract is verified by the Notary, it becomes a legal document and allows you to transfer the ownership.
4. Mortgage Process
With all the papers, previously requested by the bank when establishing your financial status, and:
- Land Registry Entry of the property;
- Verified Sales Contract;
- Entry from the Commercial Court’s Registry of the company you’re buying the real estate from – if any;
- PIN of the authorized company’s person;
- Copy of the Building License;
- In some cases they could ask for the list of the deposited signatures and bank account number of the company
The next step will be done by the bank where they will initiate the process of property’s value assessment which will be the base of your future loan.
When everything is done, bank will make six (6) copies of the contract along with the official request to be entered in the Land Registry Entry of the property for the mortgage purpose.
5. Notary Solemnization Process
You and the seller will now go to the Public Notary’s office and solemnize every copy of the contract. Solemnization is the process where Notary checks if the Sales Contract’s details correspond to all evidences and checks the validity of the Contract by making sure all relevant elements exist in it.
6. Land Registry Office
With the solemnized contract you will then go to the Land Registry Office (County Civil Court) and file the request for the mortgage in favor of the bank. You’ll receive the official ID of your case which will enable you to track the process online. It usually takes 2 weeks for the process to end. When the process is done, you’ll take the new Land Registry Entry with the mortgage details stated within and go back to the bank.
7. Arranging the Payment Details with the Bank and Transfer of the Funds to the Seller’s Account
In your bank you’ll arrange all the details and make the transfer of the funds to the seller’s account.
8. Post Payment Procedure
Once the payment has been made, the seller has to give you the Intabulandi Clause statement, verified by the Public Notary if there isn’t one already within the Sales Contract. That’s the statement which will allow you to transfer the ownership of the property.
Make sure to create a record of the current condition of the property (note the status of the counters for the gas, electricity and water). Enter any defects and make sure that seller sign that document.
9. Ownership Transfer Protocol
Even so you payed for the property and have the keys you’re still not the rightful owner; at least until you transfer the ownership. File the request in the Land Registry Office and attach the Sales Contract and every other document they request. It will cost you 250 KN and it has to be payed prior to filing the request.
10. Real Estate Transfer Tax
Now it’s time to visit the Tax Administration Office and pay the 5 % tax for the real estate transfer. Tax Administration will assess the value of your property and will issue you the request to pay the tax. Remember, you have 30 days to file this report to the Tax Administration Office and 15 days to pay it; once you receive the payment request.
11. Transfer the Ownership for the Electricity, Gas, Water and Everything Else to Your Name
This is time consuming process but it has to be done. There is no easy way to do this; you’ll have to visit each company separately and file the request for the ownership transfer.
This is it – you are now a rightful owner of a real estate in Croatia.
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