Based on your request, I will send you the current offer. You will choose the properties of your interest and we will arrange a viewing. I usually spend the whole day with the client, sometimes even more days depending on the number of selected properties and also their location. I make sure the clients are familiar with the options that correspond to their defined budget and in case of doubt or uncertainty I advise them on the best type of property that fits best their purpose. This is why I consider it important to spend some time with my clients, try to understand what kind of property would best meet their expectation and then adjust the viewings accordingly. It happens quite often that a client who comes to buy an old stone house ends up buying a modern apartment with a sea view. These services are provided free of charge.
If you decide for a real estate from my offer, we sign an agency agreement and a deposit of 10% of the property value and half of the agency’s commission is paid. Sometimes the seller requires that the deposit is wired directly to his/her account. In this case it is necessary to sign a precontract or even a purchase contract with predefined sale conditions. As soon as the seller´s signature is notarized, the deposit is transferred. The purchase contract can be signed if the property’s legal documentation is in perfect condition and there is no need to wait for the completion of a legalization process, inheritance proceedings, title clearing etc. The advantage of signing the purchase contract is that the buyer immediately becomes the owner, the disadvantage is that within a month of the signing he/she will receive a decision on payment of property acquisition tax. This means you are obliged to pay the acquisition tax before paying the remaining amount of the total price. If the property’s legal status faces any of the above-mentioned shortcomings, a future contract is usually signed with predefined conditions upon whose fulfilment the remaining purchase price is to be paid. The disadvantage is that on the basis of a future contract it is not possible to make a pre-registration of ownership, the advantage is that the transfer tax is assessed only after the full payment of the purchase price and signing of the final purchase contract. The payment of the remaining amount is made at the end of a fixed period set by the seller and the buyer, a standard period is one month from the deposit, this period could however also be longer or shorter.
It should be noted that the legislation process of the real estate purchase in Croatia itself is different from those in other European countries. Notarial custody is used minimally for the following reasons:
- Notary custody is expensive, most notaries have a rate of 1% of the property value.
- Notarial custody must be in local currency, it cannot be deposited in euros. This leads to a double exchange rate difference which makes the whole process more expensive.
- The process of ownership registration is significantly longer than in other countries so it is difficult to define the moment for the deposit release. As a rule, the seller does not agree that the full payment is made only after the registration of the new title deed since this may take up to half a year and the seller is not able to influence it in any way. The property is then blocked throughout this entire time and not to be used by either of the parties.
- Some notaries may generally refuse to accept deposit cash due to the financial and money laundering inspections.
There are several procedures for the transfer of ownership, I personally prefer to sign the purchase contract immediately with the deposit, it is the safest method for the buyer as he/she becomes the owner before paying the whole purchase price. The seller is protected by the signature of the so called “Clausula Intabulandi”, which is signed and notarized after the payment of the full amount. “Clausula Intabulandi” is a confirmation through which the property owner confirms that he/she has accepted the full purchase price, that he/she is not entitled to any further claims and agrees to the registration of the property rights. Without this confirmation the new owner cannot be registered in the title deed (but a seal can already be seen on LV).
In the case of a scenario where the BKS Agreement is signed with the deposit, after paying the full purchase price the purchase agreement is notarized containing the “Clausula Intabulandi” in one of its paragraphs.
The final step is the actual handover of the property to the buyer. I will again prepare a bilingual handover protocol stating the status of the water meter, electricity meter, or other media. The new owner will start using the property long before he receives the LV in his name.
It should be mentioned here that in Croatia there is a double real estate register. While the cadastre only refers to the plot, formation, location, regime, etc., the ownership as such is kept in the courts, Land Registry Department. This department also records all ownership deeds.