March 03, 2025
Land registry in Croatia is used to register all rights and obligations on a particular real estate. A real estate is a part of the earth’s surface along with everything that is permanently connected to it. It can be on the surface or below it. It is regulated by the Ownership and Other Property Rights Act and the Land Registry Act. The purchase and sale of real estate is a bilateral legal transaction. It transfers the ownership of real estate for a purchase price.
Method of acquiring real estate
The right of ownership of real estate is acquired by registration in the land register on the basis of a valid legal basis. The basis for the registration of ownership rights in the land register may be a private or public document. In the case of private documents, this can be, for example, a contract of sale, a contract of gift or an inheritance. Registration in the land register is crucial for the acquisition of ownership because the right of ownership of real estate is not acquired only by concluding a contract.
Purchase contract
The purchase contract for an apartment must be concluded in writing, which is a legal prerequisite for its validity according to the Civil Obligations Act. This contract should include:
- An accurate description of the property as registered in the land register
- the agreed price
- provisions on down payment, payment deadlines and handover of possession
- a tabular statement of the seller explicitly allowing the buyer to register the right of ownership.
The purchase contract is certified by a notary public, since the Land Registry Act requires the verification of the authenticity of the seller’s signature (the registered owner of the property) as a prerequisite for the transfer of ownership of the property.
Purchase on credit and pre-contract
When buying real estate on credit, a pre-contract is often concluded. The pre-contract contains the essential elements of the future purchase contract, including a description of the property, price, deadline and obligation to conclude the main contract. After concluding the pre-contract, the buyer initiates the procedure for approving the loan. After the loan is approved, the main contract for the purchase and sale of the property is concluded, and the bank disburses the loan funds to the seller of the property after it is registered as a mortgage creditor of the property.
If the property has a building, it must be legal, which means that it must have a use permit or a building permit if it is a property built by October 1, 2007 or a certificate that it was built by February 15, 1968. If it is not legal, the bank will not approve the loan, i.e. it will not finance the purchase of an illegal building.
The Importance of Land Registry excerpts
To buy a property safely, it is crucial to review the situation in the land registry. Each property is registered in its own land registry folio. Land register folios are registered in the land register of the municipal court. The land register excerpt consists of:
- Property certificates (sheet A) – contains a description of the property, area and construction area (lists the built facilities).
- Ownership certificates (sheet B) – shows who is the owner or co-owner of the property and records of disputes about the ownership of the property,
- Encumbrances (sheet C) – shows encumbrances on real estate such as mortgages, personal easements, etc.
A review of the land register ensures legal certainty and reduces the risk of legal problems.
Inconsistency between the cadastre and the land register
There is often a discrepancy between the cadastre and the land register, especially in terms of areas and parcel numbers. Namely, the number of a cadastral parcel does not have to be the same as the number of a land register parcel, and sometimes one cadastral parcel can contain several land register parcels and vice versa. This non-compliance can lead to legal uncertainty and needs to be addressed before purchasing. The data in the land register are relevant until they are changed according to the cadastre.
Purchase of ownership of a separate part of the property (apartment)
Buying an apartment implies acquiring the right of ownership over a special part of the property within the building. The key documents in this process are the title deed, which confirms the right of ownership of the seller, and the floor study, which clearly defines the specific parts of the property. If the apartment has a storage room or garage that is not registered in the land registry, this is a problem and indicates that you cannot become the owner of that part of the property without conducting appropriate court proceedings or the consent of all co-owners of the property.
Registration of ownership rights
In order to register the right of ownership, it is necessary to submit:
- Proposal for registration,
- a public or private document on a legal transaction (contract of sale),
- proof of the acquirer’s nationality,
- proof of payment of real estate transfer tax.
Also, a private document such as a real estate purchase contract must have a tabular statement by which the seller explicitly allows the buyer to register the ownership rights.
It is important to emphasize that ownership is acquired only by registration in the land register, and not by concluding the contract itself.
The persons authorised to submit proposals for the registration of ownership rights are lawyers and notaries.
Conclusion
Land registers are a key instrument for the safe purchase of real estate. Due to the complexity of legal relationships and possible inconsistencies, it is advisable to hire a lawyer. The lawyer will check the condition of the property in the land registry and cadastre and advise on all aspects of the purchase. This ensures legal certainty and minimises the risk of unforeseen problems in the future.
If you need legal assistance or a lawyer for the purchase of real estate or representation of your interests in the sale of real estate, please contact us at: