In times when the real estate market offers numerous opportunities, but also complex legal situations, understanding the process is crucial for protecting both parties – buyers and sellers. To ensure a smooth purchase or sale, we spoke with attorney Andreja Škavić from the law firm Škavić & Marković. Andreja explained what clients should pay attention to before finalizing a transaction.
What is the first step you recommend to clients before entering a purchase or sale process?
The first step for both parties is a thorough review of the land registry status. With the support of a professional, the buyer should obtain an up-to-date title deed and check whether there are any registered encumbrances, such as mortgages or annotations. On the other hand, it is in the seller’s interest to ensure that their data is accurate and up to date, old encumbrances are removed, and the description of the property matches the actual condition, so the sale can proceed quickly and without delays.
In everyday conversations, people often mix up the cadastre and the land registry. What is the key difference between them?
Although they are connected, they serve different purposes. The land registry records ownership, real rights and encumbrances on a property, while the cadastre records possession, surface area and land use. Occasionally, discrepancies arise between the two, which requires detailed analysis to avoid future issues. Alignment between both registers is the ideal we strive for in every transaction.
What does it mean in practice for a property to be “clean”, and why is this important for market value?
A “clean” property means that the seller is clearly registered as the owner, without encumbrances or pending entries on the title deed. For buyers, this ensures maximum legal security and easier access to mortgage financing. For sellers, clear documentation means higher market value and faster sales. It is not uncommon for sellers to forget about an old, repaid mortgage that was never removed, which is why early checks are essential to avoid delays in the final stage of negotiations.
What should be carefully reviewed in the title deed?
Special attention should be paid to the encumbrance section. Mortgages are the most common issue and are not necessarily an obstacle if handled correctly. With a bank’s letter of intent and a precisely drafted purchase agreement, mortgage removal becomes a routine process. More serious attention is required for enforcement or litigation annotations, as these signal that the transaction requires a strictly structured approach and legal assistance to ensure encumbrance removal as a condition for payment.
Why do you insist on checking the occupancy permit and energy certificate?
The occupancy permit is today considered the “gold standard”. It confirms that the building was constructed in accordance with permits and is safe for use. Banks require it for loan approval, and for buyers it ensures easier resale in the future. The energy certificate, in addition to being a legal requirement, provides valuable insight into property quality and future living costs.
Spousal or cohabitation rights are often overlooked. What should buyers know about this?
This is a particularly important area, as a property may be part of marital property even if only one person is registered as the owner. This means the other spouse may have co-ownership rights. However, it is a common misconception that all assets fall into this category. Property acquired through inheritance or gifts is usually considered separate property. To avoid legal complications or future disputes, these circumstances must be carefully examined and, if necessary, additional consents obtained. The goal is for the buyer to be fully confident in the ownership structure.
What is a tabular statement and why is it important?
It is a confirmation from the seller that the full purchase price has been received and that the buyer is authorised to register ownership. Without it, the purchase agreement alone is not sufficient for registration. It is also important to note that ownership registration applications are now submitted exclusively electronically via notaries or attorneys, significantly speeding up the process and increasing security.
What would you ultimately advise to anyone considering buying or selling a property?
Buying or selling real estate does not have to be a stressful process full of uncertainty. The key lies in timely checks and transparency. When the process starts with proper documentation and a clear plan, every situation – even an existing mortgage – can be resolved quickly and securely. A professional real estate agent working in synergy with a lawyer can identify and eliminate potential risks in time, transforming complex legal steps into a simple and secure process. In this way, a transaction ceases to be a source of concern and becomes what it should be – a successful start of a new chapter for both buyer and seller. Our team is here to ensure exactly that: clean documentation, clear relationships and complete peace of mind when making one of life’s most important decisions.
