The buying process of real estate

Buying real estate in Croatia is similar to buying real estate anywhere in the world and therefore the same caution and common sense you would need elsewhere should also be applied when buying property in Croatia. With the support of TopAdria Real Estate Croatia the buying process can be as straightforward and as easy as possible.
 
Here is some general information intended to give you an overview of the steps involved.
 
The first thing you should do is determine your budget. This can consist of money you have available and what you can borrow. There are a number of different financial institutions which offer loans to people buying a property in Croatia, for example, building societies and banks. You should find out if you are able to borrow money and if so, how much.
 
When researching properties in Croatia, narrow your search to the location and the type of property you are most interested in. Arrange a site visit as early in the year as possible to avoid crowds and disappointment. Look at the property (properties) to see if it (they) matches what you are looking for and to see whether or not you will have to spend any additional money on the property, for example, for repairs or decoration.
 
When you decide that you would like to buy a particular property you do not necessarily have to pay the asking price. You can offer less if, for example, you think there are repairs to be done which will cost money – unless the property is offered for renovation, anyway. If the property is being sold through an estate agent, you should tell the estate agent what you are prepared to pay for the property. The estate agent will then put this offer to the owners. Based on demand it may be prudent not to offer too less.
 
If you are going to buy a property without the assistance of an estate agent be sure to ask for advice from other professionals.
 
Although it is impossible to give a precise idea of how long the legal work involved in buying a property takes, there are some basic guidelines. From having an offer accepted to signing the contract can take up to six months. However, if there are any problems it can take longer.
 
The process involved in finalizing a real estate deal
Once you have decided that you would like to make an offer for a property we can help you negotiate with the seller. In case you have offered a price lower than the asking price, it is possible that the seller will respond with a counter-offer.
 
Acceptance and confirmation of an offer
After an offer has been accepted, you might need to make a reservation payment so that the estate agency and the seller will not offer the property for sale anymore or sign a pre-contract and make a deposit payment which is valid until the final contract has been signed.
 
Contract conclusion
The sales contract has to define in detail the mehtod of payment, the registration of the property and the deadlines for the elimination of the possible faults on the real estate. The seller’s signature on the contract needs to be verified at the notary public. At the contract conclusion the buyer pays the sales price (possibly less a reservation or deposit payment), unless payment by instalments has been agreed.
 
Property right registration
It is common that the property right is registered in favor of the buyer after the sales price has been paid in full. Taking possession of the property is usually done at that point as well.
 
Transfer of utilities
It is common to read the electricity and water meters on the day of the contract conclusion or on the day of giving the keys to the property to the buyer and to initiate the transfer of the utlities to the new user. It is the seller’s duty to pay all the utilities up to that point.
 
Filing sales tax
Filing sales tax is done by the notary public within 30 days from the verification of the sales contract. The tax office usually sends the formal decision to the buyer or his representative within a few weeks afterwards. The taxpayer needs to pay the determined amount of the tax within 15 days from the day the formal decision on the determined real estate sales tax has been delivered. The real estate sales tax is 4% of the real estate value. The taxpayer is the buyer, unless the parties have agreed differently by contract.
 
For further information please contact us directly.