Question 1

Judicial ordered sale of a property: What should we know?

Accepted Answer

The court in whose territory the property is located is responsible for deciding on the proposal for real estate enforcement and for the enforcement itself. Furthermore, real estate enforcement is carried out by recording the enforcement in the land registry determining the value of the property, selling the property and settling the bailiff from the amount realised through the sale of the property.
The sale of real estate is done by electronic public auction. The electronic public auction shall start with the publication of a call for participation in an electronic public auction carried out by the Financial Agency.

Question 2

Building permit and obtaining the same: who to submit it to?

Accepted Answer

The request for the issuing of a building permit is submitted by the investor, and it must be submitted to the competent administrative body of a large city, City of Zagreb or county, competent for administrative construction activities depending on the location where the construction or reconstruction of the building is planned. The building permit shall be issued after the procedure in which the conditions for issuing are verified. An application for a building permit shall be accompanied by a whole series of documents.

During the procedure of issuing the building permit it is determined whether all prescribed documents and issued all prescribed certificates of the main project are attached to the request, whether the main project in terms of location conditions was designed in accordance with the conditions for implementation of the project in the space prescribed by the spatial plan, whether the main project was prepared by an authorised person, whether the main project was properly identified, whether the main project was designed in such a way as to prevent the change of its content, or replacement of its parts, whether the urban planning plan was adopted, if the permit is issued in the area prescribed by a special law. Before issuing a building permit, the competent body of construction is obliged to provide parties with the opportunity to inspect the case file for clarification.

Question 3

Real estate attorney: when to consult?

Accepted Answer

It is recommended that a Party consults an attorney in any form of legal property transport in order to avoid unnecessary costs or even inability to register property rights in the event that there are burdens, mortgages or seals on the property.

An attorney can participate in the entire sales procedure from the very negotiations by negotiating a more favorable price for either the buyer or the seller, inspecting the real estate and documentation, and ultimately drafting contracts that transfer the property to the acquirer. Upon the conclusion of the contract, the attorney shall submit a proposal for registration, thereby ensuring that the documentation is complete.
Furthermore, for large investment projects, which require the settlement of the situation in land registers, expert assistance from attorneys is necessary and significantly speeds up the process itself.

Question 4

Real estate sales contract: What are the essential elements?

Accepted Answer

The purchase contract must be concluded in writing and must contain an accurate description of the property which is the subject of the sale, as well as any cargo to which the property may be burdened.
The parties may freely contract the purchase price as well as the date of entry of the buyer into the possession of the property. The signature of a person whose right is limited, burdened, revoked or transferred (by the seller) to another person must be certified by a notary public.

Furthermore, a certified sales contract, a photocopy of the buyer's identity card, proof of payment of court fees and a proposal for the registration of property rights and a land registry extract for the property transferred are required for the registration of ownership rights under the sales contract in the land register. If the property is located in an area where there are differences between cadastral plot labels and land registry plots, information on the identification of the plot should be requested from the Cadastre Office.

Question 5

Tax on purchase of first real estate and VAT tax?

Accepted Answer

If the real estate is in the VAT system, the buyer is not obliged to pay a 3% property turnover tax, in case the delivery of the buildings or parts thereof and the land on which they are located, except for deliveries before the first establishment or use or deliveries in which no more than two years elapsed from the date of first establishment or use until the date of the next delivery.

Citizens do not pay real property transfer tax if: persons acquiring real estate in the process of restitution of confiscated property and land consolidation by real estate, displaced persons and refugees who acquire real estate by replacing their real estate abroad are protected by lessees who purchase a residential building or apartment in which they live under a lease contract, citizens who purchase a residential building or apartment (including land), where they had tenancy rights or with the consent of tenancy right holders under the regulations governing the sale of apartments on which there is a tenancy right. The same applies to protected lessees who purchase a residential building or apartment where they live under a leasing contract, persons who acquire real estate in accordance with the regulations governing the conversion of social ownership into other forms of ownership, spouses, non-spouses, formal and informal partners, offspring and forefathers, and adopters and adopters in that relationship with and acquire real estate on the basis of a lifelong maintenance contract or subsistence contract.

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