Purchasing business premises: What documents do you need?

When you decide to rent a business space, whether you are starting a new business or expanding an existing one, there are numerous documents you need to prepare to realize the lease. You will need documents that ensure everything is legal, that your rights are protected, and that the contract is clearly defined. Here they are:

1. Lease Agreement

The first and most important document is the lease agreement. This agreement defines the terms under which you will use the business space and can include various conditions, including the duration of the lease, the amount of rent, the method of payment, and any price adjustments. The contract also specifies the responsibilities of both parties regarding the maintenance of the space and other obligations, such as utility costs.
Before signing the contract, always carefully read all the terms and, if necessary, consult with a lawyer or real estate agency to ensure your rights are protected.

2. Property Ownership Documents

One of the key documents that will be needed when renting a business space is proof of ownership. These documents confirm that the person renting the business space is indeed the owner of the property or has the right to dispose of it.
For you as the tenant, it is important to check that the person or company renting the space has all the necessary ownership or leasing documents that confirm they are authorized to lease. This is especially important to avoid later misunderstandings or legal problems.

3. Energy Certificate

An energy certificate is a document that shows the energy characteristics of the property. In most countries, including Croatia, the law requires that business premises have an energy certificate that assesses the energy consumption of the space and its energy efficiency.
This certificate can help you estimate how much heating, cooling, and other energy services will cost you. A good energy certificate can mean lower costs for your business in the future.

4. Utility Costs Documents

Along with the lease agreement, you should inquire about utility costs associated with the business space. This includes water, electricity, heating, and other services that may be included in the rent or separate. Always ask the landlord to provide you with a clear overview of these costs and how they are distributed.
Also, check whether these costs will be fixed or will vary depending on consumption, and whether it is in your interest for these costs to be included in the rent or paid separately.

5. Legal Status of the Space

Before committing to a lease, it is important to check the legal status of the business space. This includes all relevant documents that confirm that the space has the necessary permits to carry out certain activities, as well as that it was legally built.
For business premises of older construction, if the space has not had a previous lease, you should check the usage permit (if the space is of newer construction) or a certificate of the year of construction if the property was built before 1968. These documents confirm that the space was built in accordance with the law and has valid permits for use for business purposes.
However, it is important to note that even after the issuance of a certificate of the year of construction, the space must still have a usage permit confirming that the building is suitable for business activities. The usage permit is issued by the competent authority, usually the local city administration, and may be necessary for legally conducting any business activity in the space. This permit ensures that the space is safe to use and meets all legal and technical requirements.

Click on the names of the cities below to find out all the details related to obtaining a usage permit:

Zagreb
Osijek
Zadar
Split
Rijeka

Also, check if the space has any legal obstacles, such as disputes with former tenants, encumbrances, or debts. Documentation on the legal status includes confirmation of the legalization of the building, the issuance of necessary construction permits, as well as registration in the cadastre and land books. Always check these details, as they can have long-term consequences for your business space.

6. Space Insurance

Although not mandatory, business space insurance is important to protect yourself from possible risks, such as fire, floods, or other damage. The landlord may be responsible for insuring the building, but you may be expected to insure the interior of the space, including your equipment, inventory, and other important resources.
Check with the landlord what is included in the insurance and agree on which insurance you will need to start.

7. Documents about Previous Tenants (if any)

If the business space has already been rented, it is useful to have access to information about previous tenants. This includes information on how long the space was rented, any problems that occurred during the lease, and the condition of the space at the end of the previous lease.
This data can help you better understand the history of the space and its maintainability, and will also allow you to assess whether the space will meet your business needs.

Conclusion

Investing in business space is an important decision, and having the right documentation is crucial to ensuring that the whole process is safe and transparent. Before signing a lease agreement, check all the key documents and do not hesitate to seek the help of experts, whether it is a real estate agency or lawyers, to ensure that your rights are protected.
If you have any questions or need help in the process of renting business space, feel free to contact us – we are here to help you find the ideal business space for your type of business!