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Frequently asked questions and answers

Here you can find answers to frequently asked questions by the customers. If you need any other advice or answer to questions when buying and selling a real estate, please feel free to contact us via e-mail or telephone. All these questions are in accordance with the current law, and we regularly update all new information related to buying and selling real estate

What is a real estate?

A real estate is a particle of the earth’s surface, including everything that is relatively permanently connected to it, on its surface or below it (primarily buildings, houses, etc.) The grass, trees, fruits and all usable things that the land has to offer on its surface are parts of these properties as long as they are not detached from the soil. Everything that is built on the surface of the earth, above or below it, intended to remain there permanently, or is built in the property, later added to it, upgraded or is in any other way permanently connected to it, is part of that real estate until it is removed.

Who determines the value of a property?

The sales value of the property is determined by the seller, depending on price movements in a particular area and, depending on the supply / demand in that same area. The market value of the property is determined by the tax administration according to their “tables”, while the value of the property for the realization of a bank loan is determined by an authorized assessor.

Can foreign citizens buy property in the Republic of Croatia?

On February 1, 2009 for citizens and legal persons from EU Member States special conditions were abolished (reciprocity and consent of the Minister authorized for justice affairs of the Republic of Croatia, unless otherwise specified), and they are equal to Croatian citizens with regard to the acquisition of property. Foreigners who are not citizens of an EU Member State, in order to buy a property in Croatia, need the consent of the Ministry of Justice, which is only available to citizens of those countries with which the Republic of Croatia signed a contract on reciprocity. Foreign citizens outside the EU who have a company in the Republic of Croatia do not require the consent of the Croatian Ministry of Justice, and they can buy real estate in Croatia without restrictions, in the company ‘ s name.

Who can sell property in Republic of Croatia?

Any owner who can prove their ownership through registration in land registry or any other legal act. The right to sell real estate is acquired by each vendor, regardless of their nationality.

Where can you certify a purchase agreement and who does it?

Only the seller in the Republic of Croatia has a signature on the purchase contract notarized (by a notary public).

What is a pre-contract agreement and when is it signed?

By concluding a pre-contract agreement on the purchase of the property, the contracting parties undertake to conclude the main contract within a specified period. Pre-contract agreement obliges the price and the obligation to enter into the main contract, and surrender the property to the ownership of the customer. If a down payment is paid at the moment of signing the pre-contract agreement, as a sign that the pre-contract agreement is concluded, the contract is concluded with the payment of that amount.

How much is the down payment?

The down payment amount is determined by the agreement and it is usually 10% of the purchase value of the property. The down payment, in case of fulfilment of the contract, must be returned to the contractor who gave it, or must be included in the fulfilment of obligations.

What are land registers?

Land registers are public books (register) into which the real estates, property and other proprietary rights to property and certain other relations relevant to real estate transactions are registered. Land registers enjoy public trust and probative force of official documents.

Who pays the property transfer tax?

Domestic and foreign natural or legal persons are equal with regard to the payment of taxes on real estate unless otherwise stipulated by international agreement. The taxes are paid by the acquirer of the property in the amount of 3% of the market value of the property.

When to pay tax in the tax administration?

Taxpayer (purchaser) must be reported to the tax authorities in the area where the property is located within 30 days from the occurrence of the tax liability. After the tax authority provides a solution to the acquirer of the property, he is obliged to pay it within 15 days.

Should you hire a lawyer when selling/buying a property?

For the conclusion of a sales contract, as well as the procedure for registration of property rights, you do not need a lawyer. A person can conclude a contract by themselves, as well as apply for registration of property rights to the competent institutions. If you decide to hire a lawyer, his expenses are determined by the Lawyers Tariff.

When do you sign a brokerage agreement with a real estate agency?

You sign the brokerage agreement during your visit of the first real estate.

How will you know that you gave your trust to a licensed real estate agency?

Everyone has access to the public registry where the licensed real estate agencies are registered. Also, you can check that a person who mediates meets all the statutory requirements. You can check the real estate agents directory in the Croatian Chamber of Economy, which is also open to the public. By engaging a licensed agent, each buyer or seller will get the maximum professional and accurate information on the subject property, to avoid possible fraud and to ensure your investment whether it is about buying or selling real estate.

Why work with a licensed real estate agency?

There are many reasons why you should, for your own safety, hire a real estate agency. Agency co-operate with relevant institutions and individuals, such as architects, lawyers, court experts, offices for physical planning and construction which is a guarantee of professional service and good advice. Also, agents are familiar with the issues related to mediation regarding the method of property acquisition, registration in the land register, obtaining loans, deleting mortgages etc. All this experience and knowledge save your time and money, but above all gives you protection from a variety of frauds in the housing market.

What we do for you?

Alongside finding you the desired property, a real estate agency should take care of the legal side, collecting documents, writing contracts, certification, commissioning and registration of ownership, advisory services on the market value of the real estate, regulation of the situation in the land registry and cadastre, obtaining various documents and permits, providing a transcript of overhead costs, making the purchase documentation, referral to attorneys and evaluating services.

What is the agency commission fee?

The contracting party who asks for services of a real estate agency, pays the agency a brokerage commission fee in the amount of 3% + VAT of the contracted price.

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