Recent changes to Croatia’s Law on Lease and Sale of Business Premises highlight the importance of staying informed about the legal framework governing commercial lease agreements. These agreements are crucial for landlords and tenants engaged in commercial real estate transactions, as they define the rights and obligations of both parties. This blog post provides a detailed overview of commercial lease agreements in Croatia, covering key provisions, legal requirements, and common disputes, all within the context of the Zakon o zakupu i kupoprodaji poslovnog prostora (Law on Lease and Sale of Business Premises) and the Zakon o obveznim odnosima (Law on Obligations).  

What is Commercial Real Estate?

Commercial real estate refers to properties utilized for business activities, encompassing a wide range of property types, including offices, retail spaces, industrial facilities, and warehouses. These properties generate income through rent payments or increase in value over time. In Croatia, the lease of residential property is governed by the Residential Lease Act, while industrial property and offices typically fall under the general guidelines of the Obligations Act and the Leasing and Sale of Business Premises Act. Retail leases may incorporate turnover rents, where the rent is partially or fully determined by the store’s profits, and may include provisions allowing landlords to maintain a specific mix of tenants. Retail tenants might also be subject to obligations that benefit the shopping center as a whole, such as adhering to specific trading hours and contributing to the center’s marketing efforts. Hotel leases share similarities with office leases, with variations depending on the hotel’s location and specific characteristics.  

Key Provisions of a Commercial Lease Agreement in Croatia

A well-drafted commercial lease agreement in Croatia should clearly outline the rights and obligations of both the landlord and the tenant. It’s crucial to understand the interplay between the Lease Act and the Obligations Act when interpreting these agreements. Specific provisions in the lease agreement take precedence, followed by the Lease Act, and then the Obligations Act. Here are some of the key provisions to consider:  

• Lease Duration: The agreement must specify the lease term, which can be for a definite or indefinite period. If the agreement is for an indefinite term, the Lease Act provides for a 30-day notice period unless otherwise agreed by the parties. It’s important to note that most lease terms can be negotiated, allowing for shorter or longer durations depending on the mutual agreement between the landlord and tenant. Short-term leases, typically for six months, are also available, particularly in tourist areas or for vacation rentals. Very long leases, often granted for land (building rights), may involve a one-off payment instead of a market rent. For market rent leases, common terms range from three to fifteen years. It is also standard practice to include a renewal provision in the lease agreement. Furthermore, the Republic of Croatia or a local self-government unit, acting as the landlord, can offer a new lease agreement to a tenant who fulfills all obligations. This offer can be made up to 60 days before the expiration of the current lease, with a maximum duration of ten years and the possibility of extension for another ten years.  

• Rent: The agreement should clearly state the amount of rent, payment frequency, and due date. It may also include provisions for rent adjustments, such as indexation or turnover rent. For business premises owned by local self-government units, the rent is determined based on criteria established by the local unit, considering the type of business activity conducted in the premises.  

• Security Deposit: Landlords typically require a security deposit to cover potential damages or unpaid rent. The agreement should specify the amount and conditions for its return.  

• Maintenance and Repair: The agreement should outline the responsibilities of each party for maintaining and repairing the property. Typically, tenants are responsible for minor repairs, while landlords are responsible for major structural issues.  

• Furnished or Unfurnished: The lease agreement should specify whether the property is rented furnished or unfurnished. This choice depends on factors such as the tenant’s length of stay, budget, and personal preferences.  

• Subleasing and Transfer: The agreement may include provisions regarding the tenant’s ability to sublease the property or transfer the lease to another party. The Law on Lease and Sale of Business Premises generally prohibits subleasing unless explicitly allowed in the agreement.  

• Termination: The agreement should specify the grounds for termination, such as non-payment of rent, breach of contract, or damage to the property.  

Form of a Commercial Lease Agreement in Croatia

A written agreement is mandatory by law to ensure clarity and avoid disputes. In some cases, such as long-term leases or those involving significant investments, a written agreement is often certified by a public notary for the purpose of enabling the enforcement clause for tenant eviction.

Building Use Permits

In Croatia, using a building for business purposes requires a separate use permit. This permit is issued after a technical inspection confirms that the building complies with building regulations and permits. Tenants should ensure that the landlord has obtained the necessary use permit before entering into a lease agreement.  

Dispute Resolution

Disputes may arise between landlords and tenants regarding various aspects of the lease agreement. The agreement should include a clause outlining the preferred method of dispute resolution, such as mediation or arbitration. In Croatia, arbitration is governed by the Arbitration Act, which outlines specific rules and procedures for resolving disputes outside of court.  

Commercial Courts and Dispute Resolution

Commercial courts in Croatia have jurisdiction over various commercial disputes, including those related to lease agreements. These courts play a vital role in resolving commercial matters and ensuring the enforcement of legal rights and obligations.  

Protecting Yourself from Non-Payments and Breaches

To mitigate risks associated with non-payments and breaches, landlords can incorporate specific clauses in the lease agreement:

• Guarantees: Requiring a bank guarantee or a debenture note (zadužnica) as security for rent payments.  
• Insurance: Requiring the tenant to obtain liability insurance to cover potential damages.
• Penalties: Specifying penalties for late rent payments or other breaches of contract. Please note that penalties on monetary obligations are not allowed under Croatian law.
• Dispute Resolution: Including a clause outlining the preferred method of dispute resolution, such as mediation or arbitration.  

For instance, if a tenant consistently fails to pay rent despite reminders and warnings, the landlord may have grounds to terminate the lease agreement and pursue enforcement or other legal action to recover the unpaid rent and any associated costs.

Other General Practices

• Due Diligence: Before entering into a lease agreement, both parties should conduct thorough due diligence. This includes verifying the legal status of the property, checking for any pre-emption rights, and assessing the other party’s financial standing. It’s also essential to be aware of statutory time periods for issuing authorities to make decisions on real estate transactions.  

• Legal Advice: Seeking legal advice from a qualified attorney is highly recommended. Croatian attorney for a lease agreement can help identify potential risks, ensure compliance with Croatian law, and negotiate favorable terms. This proactive approach can prevent future disputes and protect your interests.

• Clarity and Specificity: The agreement should be drafted in clear and unambiguous language, avoiding vague terms that could lead to misinterpretations.

• Local Regulations: Be aware of any local regulations that may apply to the specific type of commercial property and business activity.

Conclusion

Commercial lease agreements in Croatia are subject to a specific legal framework, and recent legislative changes emphasize the need for landlords and tenants to stay informed. A well-drafted lease agreement is crucial for a successful landlord-tenant relationship, clearly outlining the rights and obligations of both parties. By understanding the key provisions, legal requirements, and potential disputes, both landlords and tenants can protect their interests and establish a solid foundation for their business operations. Seeking legal advice is highly recommended to ensure compliance with Croatian law and to navigate the complexities of commercial lease agreements effectively.

If you have any questions regarding a commercial lease agreement in Croatia, contact us through:

info@odvjetnik-bistrovic.hr

Introduction: What is covert employment?

Covert employment, also known as bogus self-employment, is a term that refers to situations in which employers choose to hire workers through a service contract or through a craft instead of concluding a standard employment contract. The goal of such engagement is to save on taxes and contributions, and the worker often performs the same tasks and has obligations that he would have as a regular employee.

Examples from around the world show that some large employers, such as delivery platforms, have been under scrutiny for years for hiring workers as self-employed people to avoid the costs of social security and other work obligations. Workers are registered as craftsmen or freelancers, and employers, who actually control their tasks, thus avoid higher contribution costs.

The tax benefits that such craftsmen enjoy include lower contribution rates and more favorable income taxation. On the other hand, employers use this strategy to reduce their labor costs and increase profitability.

Facts relevant to taxation

The facts relevant to the taxation of an individual taxpayer and employee are considered to be the following data:

• all receipts that are realized per individual source of income in a certain period of time,
• whether the receipts from self-employment are realised in the same period of time with other sources of income,
• What is the work of the Prophet (peace be upon him) and for how long?
• whether there is an established business plan,
• how the market operates,
• what is the usual way of finding business partners and concluding business relationships,
• number of business partners,
• and, depending on the individual case, other facts relevant to taxation.

Criteria for determining clandestine employment

The IRS uses an elaborate set of criteria to determine if there is disguised employment. These criteria look at the relationship between the employer (payer of remuneration) and the employee (executor of work), and include the following:

Behavior control: This criterion examines whether the employer has control over the worker, such as by determining the place of work, giving instructions, supervising the performance of the work, or providing work equipment. For example, if an employer requires a craftsman to perform tasks at the company’s headquarters and supervise its activities, this may indicate covert employment.

The behavioural control criterion includes elements that show whether the employer has the right to direct and control what the employee does and how he performs the work (through instructions, training or other means):

• whether the employer determines the place of work for the employee, regardless of the fact that it can be performed at another place,
• whether the employer gives the employee instructions on how to perform the job,
• whether the employer determines the time, place or manner of performing the work for the employee,
• whether the employer keeps records of working hours for the employee,
• whether the employer supervises the dynamics of work execution or requires reports on the performance of work,
• whether the employee uses the equipment and means of work of the employer,
• whether the employer trains the employee on how to perform the work.

Financial Control: This examines whether the employer has control over the financial aspects of the work. If, for example, the employer bears the costs of the craftsman (such as travel expenses or equipment) or provides monthly payments in the same amounts, this may suggest that it is actually a classic employment relationship.

The financial control criterion includes elements that show whether the employer has the right to direct or control the financial and business aspects of the employee’s work:

• whether it directs and/or contracts, i.e. whether the employer reimburses the employee’s business and travel expenses,
• whether the employer invests in the employee’s equipment, tools and materials,
• whether the employer determines the products and services used by the employee in the performance of work,
• whether the employer controls the manner and scope of providing the employee’s services on the market,
• whether the employer makes payments to the employee in certain periods of time (every month) and/or in approximately similar amounts.

Relationship of the parties: This criterion refers to the contractual relationship between the employer and the employee. If a service or cooperation contract is based on permanent or similar conditions to an employment contract (e.g. holidays are paid or sick leave is paid), then there is reason to suspect disguised employment.

The criterion of the relationship between the parties includes elements that indicate the nature of these relationships:

• whether the employer and the employee conclude a contract that has the characteristics of an employment contract in terms of its essential characteristics,
• whether the employer provides the employee with reimbursement of costs that are typical features of self-employment (annual leave, sick leave benefits or other rights related to self-employment),
• what is the duration of the work and whether this duration of the work is related to the implementation of a specific project or several projects in a row,
• to what extent the work performed by the employee represents the regular business of the employer,
• whether the employee can terminate business with the employer without material and financial consequences,
• whether it is common for business in the activity of the payer of receipts to look for certain jobs in this way on the market.

Exceptions

Depending on the specifics of a particular job, it is allowed to prove the characteristics of self-employment according to criteria that are not specified, and which in a specific relationship may represent a typical feature of self-employment.

Consequences of establishing covert employment

If the characteristics of independent work are determined, the decision will determine the amount of remuneration paid for a specific job, which is considered to be remuneration on the basis of employment. The employer is designated as responsible for the established tax and contribution obligations as a guarantor payer. Depending on the tax status of the taxpayer, certain entries in the business books will be ordered if necessary.

The payment of high fines and potential criminal liability for tax avoidance is not excluded.

If you have a question related to covert employment, please contact us at:

info@odvjetnik-bistrovic.hr

Uvod

Prema hrvatskom pravu, brak prestaje na nekoliko načina: smrću jednog od bračnih drugova, proglašenjem nestale osobe umrlom, poništajem braka ili razvodom. U ovom članku fokusirat ćemo se na razvod braka, koji je samo jedan od zakonskih načina prestanka braka. Razvod braka posebno je reguliran Obiteljskim zakonom (NN 156/2023), i to detaljnim procedurama koje osiguravaju zaštitu prava djece i pravedno rješenje za sve uključene strane.

Osnovne pretpostavke i osnove za razvod braka

Razvod braka može tužbom zahtijevati jedan bračni drug, a oba bračna druga prijedlogom za sporazumni razvod braka.

Sud mora razvesti brak ako:

• oba bračna druga predlažu razvod braka na temelju sporazuma,
• utvrdi da su bračni odnosi teško i trajno poremećeni ili,
• ako je od prestanka bračne zajednice protekla godina dana (pod bračnom zajednicom misli se na zajednički suživot).

Sporazum o pravnim posljedicama razvoda

O pravnim posljedicama razvoda se može sklopiti sporazum. Sporazum o pravnim posljedicama razvoda obuhvaća uređenje svih ključnih pitanja koja nastaju zbog prestanka braka. To uključuje dogovor o roditeljskoj skrbi, mjestu stanovanja djeteta, osobnim odnosima s djecom, uzdržavanju djece, kao i eventualno uzdržavanje između supružnika, uređenju imovinskih odnosa i podjeli zajedničke imovine. Sporazum mora biti detaljno definiran i uravnotežen, te ga sud ocjenjuje i odobrava u izvanparničnom postupku, pod uvjetom da nije u suprotnosti s interesima maloljetne djece.

Ako se roditelji ne sporazume i ne usvoje plan o zajedničkoj roditeljskoj skrbi nad djecom, o pitanjima uzdržavanja i mjesta stanovanja te viđanja djece će odluku donijeti sud po službenoj dužnosti. Zato se svakako preporuča da roditelji stave po stranu svoje osobne nesuglasice i da se pokušaju dogovoriti, umjesto da to za njih radi sud.

Obvezno savjetovanje kad bračni drugovi imaju maloljetnu djecu

Kada bračni drugovi imaju maloljetno dijete, prije pokretanja sudskog postupka mora se provesti postupak obveznog savjetovanja. Ako je namjera razvesti se temeljem sporazuma, potrebno je sastaviti plan o zajedničkoj roditeljskoj skrbi.

Obvezno savjetovanje provodi stručni tim Hrvatskog zavoda za socijalni rad nadležnog prema mjestu djetetova prebivališta, odnosno boravišta, ili prema mjestu zadnjeg zajedničkog prebivališta, odnosno boravišta bračnih ili izvanbračnih drugova. U obveznom savjetovanju sudjeluju članovi obitelji osobno i bez punomoćnika.

Obvezno savjetovanje provodi se:

• prije pokretanja postupka radi razvoda braka u kojem postoji zajedničko maloljetno dijete i
• prije pokretanja ostalih sudskih postupaka o ostvarivanju roditeljske skrbi i osobnih odnosa s djetetom.

Cilj ovog postupka nije pomirenje supružnika, već zaštita interesa djece i osiguranje da se roditelji dogovore o budućim obiteljskim odnosima.

Sadržaj obveznog savjetovanja prije razvoda braka je:

• upoznavanje bračnih drugova o mogućnosti bračnog savjetovanja,
• upoznavanje bračnih drugova o pravnim i psihosocijalnim posljedicama razvoda braka u odnosu na njih i djecu,
• upućivanje bračnih drugova da su dužni voditi računa o djetetovoj dobrobiti prigodom uređenja spornih obiteljskih odnosa,
• upoznavanje bračnih drugova sa sadržajem plana o zajedničkoj roditeljskoj skrbi i pružanje pomoći ako to zahtijevaju,
• upoznavanje s prednostima obiteljske medijacije i informiranje bračnih drugova o dostupnim obiteljskim medijatorima,
• upoznavanje bračnih drugova s postupkom radi razvoda braka pokrenutog tužbom jednog od bračnih drugova, u situaciji kad se roditelji nisu sporazumjeli o planu zajedničke roditeljske skrbi.

Obvezno savjetovanje se ne provodi ako je bračni drugi nepoznatog prebivališta ili boravišta, ako je nesposoban za rasuđivanje ili ako je nema poslovnu sposobnost tj. ima teže zdravstvene probleme zbog kojih ne može shvatiti da se vodi sudski postupak.

Nakon što se provede savjetovanje izdaje se izvješće o obveznom savjetovanju. Rok za dostavu izvješća je 60 dana od primitka zahtjeva za provođenje savjetovanja. Izvješće vrijedi 6 mjeseci i unutar tog roka je potrebno pokrenuti sudski postupak za razvod braka.

Prijedlog za sporazumni razvod braka kad bračni drugovi imaju maloljetno dijete

Prijedlog za sporazumni razvod podnose oba bračna druga zajedno. Prijedlog moraju biti priloženi izviješće o provedenom obveznom savjetovanju i plan o zajedničkoj roditeljskoj skrbi. Sud u ovom postupku provjerava je li sporazum u skladu s pravima i dobrobiti djece. Ako sud ocijeni da su svi uvjeti zadovoljeni, donosi odluku o razvodu braka. Postupak je brži i jednostavniji u odnosu na klasični postupak tužbe.

Plan o zajedničkoj roditeljskoj skrbi

Plan o zajedničkoj roditeljskoj skrbi je pisani sporazum roditelja o načinu ostvarivanja zajedničke roditeljske skrbi u okolnostima u kojima roditelji djeteta trajno ne žive u obiteljskoj zajednici.

Planom o zajedničkoj roditeljskoj skrbi mora se detaljno urediti:

• mjesto i adresa djetetova stanovanja
• vrijeme koje će dijete provoditi sa svakim od roditelja
• način razmjene informacija u vezi s davanjem suglasnosti pri donošenju odluka bitnih za dijete, te razmjene važnih informacija u vezi s djetetom
• visinu uzdržavanja kao obvezu roditelja kod kojega dijete ne stanuje i
• način na koji će se rješavati buduća sporna pitanja.

Planom o zajedničkoj roditeljskoj skrbi mogu se urediti i druga pitanja ostvarivanja roditeljske skrbi za koja roditelji smatraju da su bitna za dijete, odnosno o kojima su roditelji dužni odlučivati sporazumno, a za koja se smatra da je drugi roditelj dao suglasnost.

Roditelji su dužni upoznati dijete sa sadržajem plana o zajedničkoj roditeljskoj skrbi i omogućiti mu da izrazi svoje mišljenje u skladu s njegovom dobi i zrelošću te ga poštovati u skladu s djetetovom dobrobiti. Plan o zajedničkoj roditeljskoj skrbi roditelji mogu sastaviti samostalno, u postupku obveznog savjetovanja, kao i u postupku obiteljske medijacije.

Tužba za razvod braka kad bračni drugovi imaju maloljetno dijete

Ako bračni drugovi imaju zajedničko maloljetno dijete, uz tužbu radi razvoda braka tužitelj je dužan priložiti izvješće o obveznom savjetovanju. Ako tužitelj uz tužbu podnese izvješće o obveznom savjetovanju starije od šest mjeseci, sud će tužbu radi razvoda braka odbaciti.

Ako tužitelj uz tužbu radi razvoda braka nije podnio izvješće o obveznom savjetovanju, sud će pozvati tužitelja da ih podnese u skladu s danom uputom. Sud će odrediti rok od osam dana za podnošenje izvješća i upozoriti tužitelja na pravne posljedice nepostupanja po nalogu suda. Smatrat će se da je tužba radi razvoda braka povučena ako izvješće o obveznom savjetovanju ne bude podneseno u roku od osam dana, a ako ponovo bude podnesena tužba radi razvoda braka bez izvješća o obveznom savjetovanju, sud će odbaciti tužbu radi razvoda braka.

Ako bračni drugovi imaju zajedničko maloljetno dijete, povodom tužbe radi razvoda braka mogu predložiti:

• s kojim će roditeljem dijete stanovati i način ostvarivanja roditeljske skrbi
• ostvarivanje osobnih odnosa djeteta i roditelja s kojim dijete neće stanovati i
• visinu uzdržavanja djeteta.

Sud nije vezan tim prijedlogom bračnih drugova. Ako bračni drugovi nisu predložili uređivanje pitanja o roditeljskoj skrbi nad djecom, sud će po službenoj dužnosti odlučiti s kojim će roditeljem dijete stanovati i o načinu ostvarivanja roditeljske skrbi, ostvarivanju osobnih odnosa djeteta i roditelja s kojim dijete neće stanovati i o visini uzdržavanja djeteta.

Zaključno

Razvod braka je složen pravni postupak koji zahtijeva temeljitu procjenu i zaštitu prava svih članova obitelji, posebice djece. Procedura je jasna i ima za cilj osigurati pravedna rješenja te minimalizirati negativan utjecaj razvoda na maloljetne članove obitelji. Za precizno pravno savjetovanje uvijek je preporučljivo konzultirati odvjetnika specijaliziranog za obiteljsko pravo.

Ako imate bilo kakvih pitanja vezano za ovaj članak slobodno nam se obratite na:

info@odvjetnik-bistrovic.hr

The role of grandparents in the life of grandchildren in Croatian family law is of particular importance, especially in the areas of personal relationships and maintenance obligations. Although parents are the primary bearers of rights and obligations towards the child, grandparents also have the right and obligation to participate in the life of their grandchildren when it is in the best interest of the child. In this blog, we will cover the main aspects of the rights and obligations of grandparents, as well as the rights of grandchildren towards grandparents in the context of personal relationships and maintenance.

The right of grandparents to contact their grandchildren

According to the Family Act of the Republic of Croatia, grandparents have the right to establish personal relationships with their grandchildren if it is considered useful for the well-being of the child. This contact can include various forms of meeting, spending time together, or staying with the grandparents, depending on the agreement with the parents or the court’s decision. In situations where parents prevent contact between grandparents and grandchildren, grandparents have the right to seek judicial protection to exercise their rights.

Personal relationships are an important aspect of a child’s emotional development, so when deciding on these rights, the court pays special attention to whether contact with grandparents will have a positive effect on the child. If it is assessed that grandparents are indeed an important support in the child’s life, the court may order appropriate measures to ensure contact. The law provides for the possibility that the establishment of personal relationships takes place under the supervision of a professional, especially if the relationship between parents and grandparents is strained or there is concern for the child’s well-being.

Grandchildren’s right to contact with grandparents

A child has the right to have relationships with grandparents, as well as with other close people who have a positive impact on his or her life and development. Family law puts the well-being of the child at the center of every decision-making, including when determining the right to personal relationships. If contact with grandparents is important for the emotional and social development of the child, the child has the right to such relationships, and the court will act in the interest of the child.

Grandparents’ maintenance obligation towards their grandchildren

According to the Croatian Family Act, the maintenance obligation primarily applies to parents, but under certain conditions it can also be transferred to grandparents. If the parents do not support the child, the grandparents in the parental line are obliged to support the grandchildren. In such cases, the grandparents have a legal obligation to provide financial support to the grandchild, which includes the basic needs for the child’s life, education and health.

Grandchildren’s obligation to grandparents

An adult grandchild is obliged to support a grandmother or grandfather if the grandmother or grandfather is not able to work, and they do not have sufficient means of subsistence or cannot obtain it from their property, and if they have supported or cared for the child for a long time.

Conclusion

Grandparents play an important role in the lives of their grandchildren, which family law recognizes through the rights to personal relationships and the obligation to maintain themselves in certain situations. While parents are the primary bearers of care and responsibility for the child, grandparents can provide additional emotional support and financial assistance when needed. On the other hand, grandchildren have the right to have contact with their grandparents, and the law allows them to protect this right in cases where it is in their best interest. It is important to note that each situation is unique, and that in family law, decisions are always based on the specific circumstances of the case and the best interests of the child.

If you need a family law lawyer, please contact us at: info@odvjetnik-bistrovic.hr

Introduction

In Croatia, ownership of real estate is acquired by registration in the land register. The land register is a public register in which information on the legal status of real estate is recorded, including property rights and other rights in rem. The acquisition of ownership and other real rights to real estate is regulated by the Ownership and Other Property Rights Act and the Land Registry Act. Registration in the land register is crucial because only the registered right has legal effect vis-à-vis third parties.

Verification of ownership

Verification of ownership of real estate is carried out by inspecting the land register. You can do this in person at the competent land registry court or through a lawyer who will check all the relevant information for you. It is advisable to hire a lawyer because a professional can thoroughly review all aspects of the ownership status and potential encumbrances on the property.

Composition of the land register

The land register consists of three main parts: the title deed (title deed), the possession deed (census sheet) and the consignment note (encumbrance).

• Title deed: Contains information about the owner of the property, the basis for acquiring ownership and any notes related to ownership.
• Possession (Census Sheet): This is where information about the property is listed, including its physical characteristics, area, and purpose. It also lists the rights in rem that exist in favour of that property.
• Bill of lading (bill of lading): This sheet contains information about all the encumbrances that encumber the property, such as mortgages, foreclosure notes, records of dispute, easements, and other legal actions that affect the property.

What to look for when inspecting the land register

When inspecting the land register, you should pay attention to the following:

• Mortgages: Check if there is a registered mortgage on the property, which means that the property is insurance for some debt.
• Enforcement Notes: Enforcement notes indicate that enforcement proceedings have been initiated against the owner of the property.
• Dispute Notes: They indicate that there is a legal dispute related to the property, which can make it difficult or impossible to acquire ownership.
• Active Seals: Active seals indicate that some process is underway that may affect the rights registered in the land register. This can be a change of ownership, a bug fix, or some other process.

What to do when the situation in the land register is not in line with the actual situation

If it is found that the situation in the land register is not in line with the actual situation, for example when the seller is not registered as the owner, it is important to consult a lawyer. A lawyer will check the legal basis for the acquisition of ownership and can assist in the process of correcting the data in the land register. Also, he can advise on further steps to ensure the legal acquisition of ownership.

Conclusion

Checking the ownership of the property before buying is a crucial step that can prevent future legal problems. It is always advisable to hire a lawyer to carry out a detailed check of the land registry status of the property. This way, you can be sure that you are acquiring a property without hidden encumbrances and legal obstacles.

If you need a real estate lawyer, please contact us at:

info@odvjetnik-bistrovic.hr

The Law on Salaries in the Civil Service and Public Services (hereinafter: the Salary Act) was adopted and published in the “Official Gazette” no. 155/2023, and entered into force on 1 January 2024. This Act regulates the system of salaries for civil servants, including the principles of the salary system, job evaluation, evaluation of work efficiency, salary and salary supplements, pay scale and pay grades, promotion in salary based on the assessment of work efficiency, remuneration for achieved work results and supervision of the implementation of the Act.

1. The principle of equal pay

One of the fundamental principles introduced by this Act is the principle of equal pay, according to which all civil servants and employees have the right to equal pay for equal work or work of equal value. This principle also includes the obligation that women and men who perform equal work are paid equally, which contributes to gender equality in state and public services.

2. Pay transparency

The Salary Act also introduces the principle of salary transparency. Data on the elements for the calculation of salaries for positions in the civil service must be publicly published on the website of the state administration body in charge of civil service relations. In this way, transparency in payroll is ensured and allows all employees to have an insight into the way their salaries are calculated.

3. Job evaluation

According to the Act, jobs in the civil service and public services are evaluated by applying standard criteria for the evaluation and classification of jobs. These criteria include the required level of formal education, required work experience, job complexity, responsibility, collaboration and communication, and management. On the basis of these criteria, the coefficients for the calculation of salaries are determined, which allows for fairer and more transparent wage determination.

4. Evaluation of work efficiency

The law introduces a system of annual evaluation of the efficiency of the work of civil servants and employees. Work efficiency ratings are divided into excellent, particularly successful, successful, satisfactory and unsatisfactory. Depending on the rating, employees may be eligible for a pay supplement for work efficiency, which encourages motivation and rewards exceptional work performance.

5. Pay scales and pay grades

The Act prescribes a uniform salary scale consisting of 16 salary grades with salary calculation coefficients ranging from 1.00 to 8.00. Civil servants and employees are classified into salary grades based on job evaluation, which ensures fairness and consistency in determining salaries within the civil and public service.

Conclusion

The Salary Act brings a number of significant changes and improvements in the salary system for civil servants and public servants. Its application in practice should ensure transparency, equality and fairness in the determination and payment of salaries, which further encourages the efficiency and satisfaction of employees in the civil and public service.

If you need a lawyer for employment law, public services and government services, please contact us at:

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Introduction: What are Land Registers?

Land registers are public registers that contain information on the legal status of real estate. They are a key instrument in the legal transaction of real estate because they enable the security of ownership rights and transparency of the legal status of real estate. The history of the development of land registers in Europe dates back to the Middle Ages, while in Croatia the first organized real estate records date back to the time of the Austro-Hungarian Monarchy. Land registries have evolved to become digitized systems that enable faster and more efficient data processing.

There are different types of land registers in the different legal systems of the world, from centralized registers, such as those in Germany, to decentralized systems that are present in some Anglo-Saxon countries. The essence of a centralized register of all real estate lies in its ability to provide reliable information about ownership and legal burdens, which is crucial for the legal certainty and efficiency of the real estate market.

Types of Land Registry Registration

Land registry entries imply recording all legally relevant information about real estate and rights to it. According to the Land Registry Act, there are three main types of registration: registration, pre-registration, and notation.

1. Registration is a permanent entry by which rights to real estate are acquired, transferred, limited or terminated without special subsequent justification.
2. Pre-registration is a temporary registration that reserves a place in the land register until the final decision on registration.
3. A record is an entry that records certain facts that may affect the legal transaction of real estate, such as disputes or records of enforcement.

These entries have legal effects because they ensure the public credibility of the data in the land register, allowing third parties to reliably find out who owns the property and what rights or encumbrances exist on it. The registration process is carried out by submitting a proposal to the competent land registry court, which, after reviewing the proposal, issues a decision on registration.

Are there deadlines for registration in the land register?

According to the current Land Registry Act, there is no explicit deadline for submitting a proposal for registration. However, it is extremely important to register as soon as possible after acquiring the property or changing the rights to it. Namely, by untimely registration of ownership or other rights, it may happen that a third party registers some of their rights that may interfere with or even prevent your registration.

For example, if you buy a property and do not register as an owner, someone can record enforcement or some other encumbrance on that property against the former owner, which can significantly jeopardize your property rights. Also, ownership disputes can make your enrollment difficult or impossible, further underscoring the importance of acting urgently.

Conclusion

Although the law does not provide for specific deadlines for registration in the land register, it is recommended that all registrations be made as soon as possible through a notary public or directly at the land registry court. Timely registration ensures legal certainty and avoids possible complications, such as the recording of enforcement or disputes on the property. Timely registration of all changes in the land register is essential to protect your rights and ensure the legal certainty of real estate.

If you need a real estate lawyer, please contact us at:

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Introduction

A handwritten will without a witness, also known as a holographic will, is a legal document by which a person expresses his wishes for the distribution of property after death, and it is drawn up by hand without the presence of witnesses. According to Croatian law, such a will must be fully written, dated and signed by the testator’s hand. This form of will is simple and economical, but it has its advantages and disadvantages to consider.

History and application in other legal systems

Holographic wills exist in many legal systems around the world, including civil and customary legal systems. Historically, this form of will allowed people who did not have access to lawyers to express their last wishes. In France, Germany, Switzerland and many U.S. states, holographic wills are a recognized form of will. Their historical application is based on convenience and accessibility, providing testators with an easy way to express their wishes.

Form of a handwritten will

In order for a handwritten will to be valid, it must meet several key elements:

1. Handwriting: The entire will must be handwritten. The use of a typewriter or computer is not allowed.
2. Date: The will must contain the exact date of drafting (day, month, year).
3. Signature: The will must be signed by the testator. The signature is crucial for the validity of the document.
4. Declaration of Will: A will must clearly express the testator’s desire for the distribution of assets after his death.

Advantages of a handwritten will

1. Simplicity: Drafting a handwritten will does not require the assistance of a notary, making it accessible to everyone.
2. No costs: There is no need to pay a notary or lawyer, which makes this type of will economical.
3. Confidentiality: The testator can draw up a will in private, without the need for witnesses to be present.
4. Speed: It can be put together quickly in emergency situations when an asset decision needs to be made quickly.

Disadvantages of a handwritten will

1. Legal errors: A testator, who is not a lawyer, may make legal errors that may lead to the invalidity of the will or problems in its interpretation.
2. Forgery: Without the presence of a witness or notary, a handwritten will is more susceptible to forgery.
3. Loss or destruction: A physical will can be easily lost, damaged, or destroyed, which can make it difficult to execute.
4. Unclear clauses: Due to a lack of legal advice, clauses in a will can be vague or contradictory, which can lead to disputes between heirs.

Case law

Case law in Croatia and other countries shows that handwritten wills are often the subject of disputes precisely because of the lack of witnesses and ambiguities in the text. However, courts are often prepared to recognise the validity of such wills if the basic conditions are met, and if there is no evidence of coercion, fraud or incompetence on the part of the testator.

Conclusion

A handwritten will without witnesses is a practical and economical way of expressing a last will, but it carries risks that need to be carefully considered. It is advisable, whenever possible, to consult with a will lawyer to avoid unnecessary legal complications.

If you are looking for a lawyer for wills, please contact us at:

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Introduction

Matrimonial property in Croatia is regulated by the Family Act. This law defines precisely what is considered to be the joint property of the spouses and how this property is divided in the event of divorce. There is no uniform regulation of matrimonial property at the level of the European Union, but each member state has its own laws and regulations. Nevertheless, there are certain similarities and principles that apply in most European countries. For example, in Slovenia, matrimonial property is regulated by the Marriage and Family Relations Act, while in Serbia it is regulated by the Family Act.

Legal definition of matrimonial property

According to the Family Act of the Republic of Croatia, matrimonial property includes all property acquired by the spouses through work during the marital union or that originates from such property. The matrimonial property belongs to the spouses, regardless of which of them contributed to the acquisition of the property.

What property is included in the matrimonial property?

The matrimonial property includes:

1. Salaries and other receipts: All income earned by the spouses through work during the marriage.
2. Real Estate: Apartments, houses and land purchased or built during marriage.
3. Movables: Cars, furniture, and other items purchased during the marriage.
4. Savings and investments: Money and investments made during marriage.
5. Business shares: Shares in companies acquired during the marriage.

What is considered a marital union and what is not considered a marital union?

A marital union implies a common life of spouses based on mutual respect, trust and support. This includes living together, caring for each other, and participating in all aspects of living together.

 A  period when the spouses are formally still married but no longer live together or share common obligations and duties is not considered a marital union. Such a period may include situations where the spouses are in the process of divorce or when they have decided to live separately for various reasons.

Examples from case law

Recognized as matrimonial property:

• Apartment purchased during marriage: Regardless of who formally owns the property, an apartment purchased with joint funds or funds earned during the marriage is considered marital property.
• Investments in a joint business: If the spouses jointly invested in a business venture during the marriage, these shares will be considered marital property.

Not recognised as matrimonial property:

• Inheritance and gifts: Property acquired by inheritance or gift from a third party is usually not considered marital property, unless otherwise agreed.
• Property acquired before marriage: Property acquired by one of the spouses before the marriage, if it has not been significantly increased by working together during the marriage, does not form part of the matrimonial property.

Marriage and prenuptial agreement

The property relations of the spouses may be regulated by a marriage or prenuptial agreement. These agreements allow the spouses to define in advance how their property will be divided in the event of divorce, thus avoiding potential disputes and disagreements. You can find out more about this at the link prenuptial agreement lawyer.

If you need a lawyer for a prenuptial agreement or the regulation of property relations with a spouse, feel free to contact us at:

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Introduction: What is an NDA?

An NDA, or Non-Disclosure Agreement, is a legal document used to protect confidential information between two parties. Its purpose is to prevent the disclosure of sensitive information to third parties without the consent of the owner of the information. An NDA is a key tool for the protection of intellectual property, trade secrets and other confidential information in business collaborations.

Legal regulation of NDA in different states

Croatia: In Croatia, NDA contracts are regulated by the Civil Obligations Act and the Act on the Protection of Undisclosed Information with Market Value. Case law and the contracting parties also play a key role in the formulation and implementation of these contracts.

European Union: In the EU, the protection of trade secrets is regulated by Directive (EU) 2016/943 on the protection of undisclosed know-how and business information (trade secrets) against unlawful acquisition, use and disclosure. This Directive provides for common standards for the protection of trade secrets within the Member States.

United States: In the US, NDAs are regulated at the state level, with some federal laws also playing a role, such as the Trade Secrets Protection Act of 2016. (Defend Trade Secrets Act – DTSA).

China: China has recently improved its trade secret protection laws through amendments to the Unfair Competition Prevention Act and the Trade Secrets Law. These laws provide fundamental protections for trade secrets and confidential information.

What data is most often protected with an NDA and when is it signed?

The data most commonly protected by an NDA includes business plans, marketing strategies, financial data, client lists, innovative products and technologies, as well as any information that can provide a competitive advantage. An NDA is usually signed in the early stages of a business collaboration, before the confidential information is shared with the other party.

Clauses that an NDA should contain

Definition of Confidential Information: A clear definition of what is considered confidential information.

Obligation of confidentiality: A precise description of each party’s obligations to protect confidential information.

Exclusions: Detailing information that is not covered by the NDA.

Duration of confidentiality: Specifying the period of time for which information must be kept confidential.

Liability for Violation: Defining sanctions for breach of contract.

Law and Jurisdiction: Determining the applicable law and jurisdiction to resolve disputes.

Return and Destruction of Information: A procedure for the return or destruction of confidential information upon expiration of a contract.

Describing a trade secret

Trade secrets should be described clearly and precisely, but in a sufficiently general way to cover any information that may be relevant. For example, instead of mentioning a specific formula, ‘all technical information related to the development of product X’ may be indicated.

Circumvention and abuse of NDA

Examples of how an NDA can be circumvented include not defining confidential information precisely enough or poor contract enforcement. Abuse may include situations where the party who received the information uses or discloses that information without consent. Known cases of NDA violations include cases where former employees used confidential information for competitive advantage in new jobs.

Famous court cases

In the USA, the case of Waymo v. Uber, where Uber has been accused of stealing trade secrets related to autonomous vehicles. In the EU, one of the more well-known cases involves Nokia, which used confidential information from a former employee of a rival company.

The most important clauses for the protection of trade secrets

The most important clauses in the NDA include a clear definition of confidential information, a strict obligation of confidentiality, and detailed sanctions for breach of contract. The valuation of the damage caused by the breach of the NDA can be carried out by estimating the actual financial damage caused by the breach or by using methods to estimate the loss of profits and the market value of confidential information.

In conclusion, an NDA is a crucial tool for protecting confidential information in business collaborations. Its proper compilation and implementation can significantly reduce the risk of loss of intellectual property and other confidential data.

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