Buying and selling real estate is one of the most important financial and life steps, so it is not surprising that it requires good preparation and careful guidance throughout the entire process. Although it seems simple at first glance, the actual procedure involves several stages, from checking the documentation and agreeing on the price to signing the contract, paying the balance and registering the ownership in the land registry.
First property inspection
Before the buyer decides to take a more serious step, it is important to thoroughly inspect the property itself and everything related to it. This means checking the location, condition of the apartment or house, any defects, but also the legal status of the property, including ownership and possible encumbrances. At this stage, it is useful to ask as many questions as possible and seek clear answers, because later mistakes can be expensive and time-consuming.
Documentation inspection
Documentation is the basis for a safe purchase. The buyer should check the land registry extract (ownership certificate), cadastral data, the Use Permit or the Decision on the state of the building, the energy certificate and all other documents that confirm that the property is in order for sale. If the property is purchased through a loan, the bank will additionally ask for the documents necessary for financing approval, so it is good to know in advance what is required.
Negotiations and pre-contract
After the buyer is satisfied with the condition of the property and the documentation, the price and other conditions are negotiated. If the parties agree, a preliminary contract is often signed, which reserves the property and defines the obligation to conclude the main contract at a later stage. The pre-contract usually contains information about the property (description from the title deed), price, deadlines, a statement that the seller is authorized to sell, and other essential ingredients. A deposit of 5-10% of the agreed price is usually paid when the pre-contract is certified.
Master Purchase Agreement
The main sales contract is the central legal document of the entire process. It regulates in detail the rights and obligations of the buyer and the seller, the description of the property, the price, the method of payment and the deadline for handing over possession. The contract must be in writing, and in practice it must be certified by a notary public, while in the case of a loan purchase, the loan agreement is also solemnized. This is why it is important that the Purchase Agreement is drawn up by a professional in order to avoid later ambiguities or disputes.
Payment and tabular declaration
After signing the contract, the agreed purchase price is paid within the agreed period, and in the case of a loan purchase, the process also includes the registration of a mortgage on the property in favor of the buyer's bank. When the seller receives the full amount of the agreed purchase price, he issues a tabular declaration, i.e. permission for the buyer to be registered as the new owner of the property. This step is extremely important because without a tabular declaration, the buyer cannot complete the registration of ownership in the land registers. The next step that follows is the handover of the property within the agreed period, where the handover record is signed and the buyer takes possession of the property.
Registration of ownership
Acquisition of ownership does not end with the signing of the contract, but only with the registration in the land registers. The buyer submits a proposal for registration to the competent court through a notary public office (with the necessary documentation - a certified purchase contract and a tabular extract), and after the registration, he becomes the legal owner of the property. This is the moment when the purchase procedure is formally considered completed and when the buyer acquires the full right to dispose of the property.
Tax obligations
After the purchase, there is also a tax obligation. In Croatia, the buyer of property generally pays real estate transfer tax (unless he has the right to an exemption), and the application is submitted to the competent Tax Administration within the legal deadline. It is important to know that the tax and administrative parts should not be skipped because they confirm that the purchase was carried out properly and in accordance with the regulations.
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Why professional help is important
The entire procedure can seem complex, especially if the purchase is financed with a loan or if the documentation is not completely in order. That is why many buyers and sellers decide to hire an agency that can follow the process from start to finish and help in communication with the seller, bank, notary and legal experts. RESIDENT Nekretnine can be a valuable partner in this because experience and an organized approach facilitate the entire process and reduce the risk of errors.
Buying and selling real estate is not just an exchange of documents and money, but a process that requires precision, patience and good preparation. When each step is done in a timely and professional manner, the entire process becomes safer, faster and much less stressful.