A Guide to Real Estate Terms: Everything You Need to Know

The world of real estate can be confusing for anyone encountering buying, renting, or selling an apartment or house for the first time. Advertisements and contracts often contain terms like "ideal part", "coefficient for calculating area" or "deposit", which are not immediately clear to everyone. We have decided to serve everything in one place to make your first encounter with the world of real estate as pleasant as possible. Understanding these terms is crucial to making informed decisions, avoiding misunderstandings, and ensuring that your purchase, rental, or sale goes smoothly. In this guide, we provide explanations of the most common, but also less well-known, terms that will help you navigate the Croatian real estate market.


1. Ideal part
This term refers to the share of ownership in a common property that is not physically separated, but represents a legal share. For example, if an apartment is co-owned by three people, each of them may have an ideal part of 1/3, which means that each has the right to a third of the property, but not necessarily to a specific space within it.


2. Land registry extract
This document confirms the legal status of the property and its owners. It consists of a registration sheet (from the cadastre) and a land registry insert. It is important to note that the title deed does not necessarily indicate the physical condition of the property, but only its legal status.


3. Co-ownership
This refers to a situation in which several people jointly own a property, but each has a certain share in the ownership. For sale or other legal actions, the consent of all co-owners is usually required.


4. Deposit
A deposit is an amount of money that the buyer gives to the seller as a guarantee that they will fulfill the terms of the contract. If the buyer withdraws, the deposit usually remains with the seller; if the seller withdraws, they must return double the amount of the deposit to the buyer.


5. Coefficient for calculating area
To determine the actual area of the property, coefficients are used that adjust the area according to the type of space. For example, for loggias, terraces or balconies, a coefficient less than 1 is used, while for interior rooms the coefficient is 1.


6. Property in joint ownership
This refers to a situation in which several people jointly own a property, but each has a certain share in the ownership. For sale or other legal actions, the consent of all co-owners is usually required.


7. Construction contract
This contract is concluded between the investor and the contractor, and is based on the building permit. It contains details about construction works, deadlines and payment terms.


8. Building manager
The person or company responsible for managing the common parts of the building, including maintenance, repairs and communication with apartment owners.


9. Land registry extract
This document confirms the legal status of the property and its owners. It consists of a registration sheet (from the cadastre) and a land registry insert. It is important to note that the title deed does not necessarily indicate the physical condition of the property, but only its legal status.


10. Sales contract
The basic document by which the ownership of the property is transferred. The contract must be certified by a notary public, and the transfer of ownership is entered in the land registry.


11. Common and floor areas
In residential buildings, residents share hallways, stairwells, elevators and courtyards. The costs of maintaining these areas are usually covered by a common reserve.


12. Registration in the land registry
The official procedure that confirms ownership of the property. Without registration, the owner does not have legal protection and cannot use the property as collateral for a loan. You can check all information about the status of real estate on the portal Uređena zemlja.


13. Association of apartment owners
The organization that manages the residential building, makes decisions about the maintenance and financing of common parts, and implements the house rules.


14. Preliminary contract
A document that confirms the agreement on the purchase of the property before the conclusion of the final sales contract. An advance payment is usually paid, which is included in the purchase price.


15. Legalization
The procedure by which the status of a building that was built without a permit is retroactively resolved, in accordance with the Law on the Handling of Illegal Buildings.


Now that you are familiar with the most important and less well-known terms in the world of real estate, you will more easily understand advertisements, contracts and all legal and technical details when buying, renting or selling. If you are looking for your first apartment, a house for your family, or want to monetize your property through rental or sale, our agency is at your disposal. Browse our real estate offer for purchase and rent, or contact us so that we can help you in every step of the sale and mediation.