Buying real estate is a big step, and to ensure the whole process goes smoothly, it's important to thoroughly check the documentation. Here, we'll guide you through the key documents you need to keep in mind when buying an apartment or a house. Checking these documents is not only a legal obligation, but it can also help you avoid potential legal problems and ensure that the property you are buying is truly the one presented to you.
1. Land Registry Excerpt
The first document you must check when buying real estate is the Land Registry Excerpt. This excerpt is the only official proof of ownership and other rights that are registered in the land registry. The Land Registry Excerpt confirms who the actual owner of the property is, whether the property is encumbered by any rights (such as a mortgage or encumbrances), and allows you to be sure of the ownership relationships. Before making any decisions, check this information to avoid the risk of buying a property that is not properly registered or has legal obstacles.
For more information on how to obtain a Land Registry Excerpt, you can watch a video on the Uređena zemlja channel. This way you will find all the necessary steps to independently check the status of the property.
2. Energy Certificate
The energy certificate is another essential document that you must check before buying a property. This certificate shows the energy characteristics of the building, such as energy consumption, insulation, and the efficiency of the heating system. The energy certificate is issued by an authorized energy certifier and is valid for ten years from the date of issue. Every building must have an energy certificate, and in addition to residential buildings, the certificate is also mandatory for specific types of facilities that use energy to maintain the internal temperature.
For the sale of real estate, the owner is obliged, before transferring the rights to the buyer, or renting or leasing, to submit the energy certificate or a copy of it. Also, the energy class must be stated in the advertisements for sale or rent. This document gives you a clear picture of the energy efficiency of the property, which can affect your heating and cooling costs.
3. Building Permit and Usage Permit
If you are buying a new building or a property under construction, it is essential to check the building permit. The building permit or the corresponding act for construction guarantees that the project is legal and that all conditions for construction have been met. The building permit shows that the investor has the right to build the facility according to the applicable laws and regulations.
Equally important is the usage permit, which is issued after the completion of construction, confirming that the building is safe to use and that it has been built according to the conditions from the building permit. If the original conditions were deviated from during construction, you will not receive a usage permit, and this can lead to problems when buying.
It is recommended that you request an insight into the main project because it can help you understand all the technical and construction aspects of the facility.
4. Preliminary Agreement and Sales Contract
A common step in the real estate buying process is signing a preliminary agreement that clearly defines the terms of the sale. The preliminary agreement contains details about the property (such as cadastral data and parcel number), the price, the date of concluding the final contract, and the payment of the deposit. The deposit is a mandatory amount that is used as a guarantee for the fulfillment of the terms of the preliminary agreement. If the buyer withdraws, the seller keeps the deposit, and if the seller withdraws, they must pay the buyer double the amount of the deposit.
The sales contract, which comes after the preliminary agreement, includes all the details regarding the transfer of ownership and rights to the property. It is recommended that this contract be prepared by a lawyer to ensure that you are fully protected and that there are no irregularities that could later cause problems.
5. Registration of Ownership and Real Estate Sales Tax
Registration of ownership is the key completion of the whole process. After the sales contract is signed, it is necessary to submit a proposal for the registration of ownership in the land registry. This is an official process that ensures that you become the legal owner of the property. Also, it is necessary to report the purchase of real estate to the Tax Administration, because the buyer is obliged to pay real estate sales tax, which amounts to 3% of the market value of the property.
Conclusion
Buying real estate is a significant step, and checking all the necessary documents is crucial for a safe and carefree process. Before making a final decision, be sure to check the Land Registry Excerpt, energy certificate, building and usage permit, and the sales contract. Hiring experts such as real estate agents or lawyers can help you protect yourself from potential legal problems and make the whole process run as quickly and easily as possible.
