Guide to teminology and documentation- Real estate sale and purchase

Buying a real estate through an agency provides a number of advantages, including professional support and expert guidance throughout the entire real estate sale and purchase process. Agency Premium Malinska will help you find the real estate that suits your needs and budget, organize tours and negotiations, and provide legal and administrative support.
After you find the real estate that suits you, the agency will help you negotiate the price and conditions of the sale and purchase, and ensure that all the necessary documents are in order. Our experience and expertise are key to ensuring a successful and legally conducted sale and purchase.
Real Estate Ownership - Extract from the land books
This document is often referred to in layman's terms as a "title deed", although this is a misnomer since the Extract from the land books consists of the possession title (inventory deed, deed A), the title deed (title deed, deed B) and the encumbrance sheet (bill of lading, deed C ).
Each of the mentioned parts of the extract from the land books is important to us, considering that you can find out different information from each of them.

In the possession title all the constituent parts of the land registry body are entered (description of the real estate, e.g. house of 100 m2, yard of 350 m2...), as well as real rights that exist in favor of the real estate (e.g. right of easement), all cadastral changes related to the land registry body (changes in cadastral parcel number, area, address, manner of use, construction, etc.), all public law restrictions in the legal transactions of the land registry body that are not of a general nature, the right to build, buildings of special interest to the Republic of Croatia and under a special ownership regime.

In the title deed, there are entered the right of ownership and the restrictions to which the owner is personally subject in terms of free management or disposal of the real estate, prohibition of encumbrance or alienation, restrictions on disposal, property of the general good of the property, who takes care of, manages and is responsible for that real estate.

In the encumbrance sheet, there are entered the real rights encumbered by the real estate (e.g. lien, easement registered against the real estate), as well as the rights acquired on these rights, the right of repurchase, first purchase, lease, and those restrictions on the disposal of the real estate to which the current owner is subject encumbered property, prohibition of encumbrance or alienation.
Before making a decision on the real estate sale and purchase, it is definitely important to review the land books that are publicly available, and the review can also be done electronically at the following link: https://oss.uredjenazemlja.hr/public-services/review-lr-bdc  .
You can review the land books electronically, if you have data on the name of the cadastral municipality of the real estate, the number of the cadastral plot and/or the number of the land registry insert.
Documentation - "Clean Papers"
Our agency, Premium Real Estates Malinska, will make sure that all the necessary documents are in order, which is often called "clean papers". In addition to the extract from the land books, Premium Real Estates Malinska will ensure the presence of a building permit, a use permit or a decision on the constructed condition (legalization), a copy of the cadastral plan, an energy certificate, and in the case of an apartment, a floor study.

Building permit - construction of the building, reconstruction or extension of the building can be started on the basis of a valid building permit, and must be built in accordance with this permit. The investor is obliged to submit an application for the issuance of the building permit to the competent department for construction and spatial planning at the location where the construction or reconstruction of the building is planned. Before starting construction, it is necessary to report the start of construction to the competent department. It is important to report the start of construction on time, because the building permit ceases to be valid if the investor does not begin construction within three years from the date of validity of the permit. Also, from the beginning of the construction application, you should ensure that the building is completed within the deadlines prescribed in the Building permit (buildings of group 1 within ten years, buildings of groups 2a and 2b within seven years, buildings 3a and 3.b groups within five years).

Certificate of occupancy (Use permit) -  an official document, which confirms that the building was built in accordance with the approved project, construction standards and regulations and is ready for use for the intended purpose.
The constructed building, or the reconstructed building, can be used, that is, start using, and the decision can be made to carry out activities in that building according to a special law, after the use permit has been issued for that building.
The derived status decision - is issued for an illegally constructed building which, according to the „Act on Dealing with Illegally Constructed Buildings“, can be legalized, if:
- the documents stipulated by the Law are attached to the request for the decision,
- is an architectural recording, i.e. a recording of the constructed state in accordance with the constructed state of the building, if the same is submitted with the request,
- the fee for keeping an illegally constructed building in the area, i.e. the first installment of the fee in case of installment payment thereof is paid.
The derived status decision is issued by the the competent department that performs the tasks of issuing acts for the implementation of spatial planning documents and construction on the territory of which the illegally constructed building is located. In the "legalization" process, i.e. by obtaining the derived status decision, the illegally constructed building is legalized, and therefore it replaces the Use Permit.

A copy of the cadastral plan - is a public document that proves how the cadastral parcel is shown on the cadastral plan.

The cadastral plan of the real estate cadastre is a collective graphic representation of cadastral data and is kept in electronic form, and the cadastral plan can be viewed at the following link: https://oss.uredjenazemlja.hr/map

The cadastral plan of the real estate cadastre must contain data on: numbers of cadastral parcels, borders and other boundaries of cadastral parcels, boundaries of types of use of parts of cadastral parcels, addresses of cadastral parcels and buildings (position, shape, type of use and house number).

Floor study - that is, the plan of special parts of real estate is an official document that is prepared for the purposes of establishing the ownership of a special part of real estate, namely all parts of real estate that can function and be an independent usable entity and can be the subject of independent purchase and sale.
The floor study defines graphically and textually the special co-ownership parts in the building, the associated secondary parts and the shares of individual co-owners in the ownership of the common parts of the building and the land on which the building is built.
In the floor study the exact area of each separate part of the property, as well as the owner of that particular part, is entered, and the location (e.g. ground floor) and designation (e.g. apartment No. 1, to the left of the entrance to the ground floor) of that particular part is clearly defined: apartment, office space, garage, parking space, etc.

It is necessary to obtain confirmation of independent user units based on the floor study from the competent department for construction and spatial planning. Furthermore, based on the confirmation of independent user units and the consent of the co-owners of the building, condominium ownership is entered in the land books.
AGREEMENT ON TERMS AND CONDITIONS - NEGOTIATIONS - The agency, as an intermediary, the buyer and the seller reach an agreement on the terms of the sale and purchase, including the purchase price, the terms of payment and signature of the Preliminary Agreement/ Agreement , terms of payment and other key elements.

SIGNATURE OF THE PRELIMINARY AGREEMENT - In some cases (especially if the real estate is still under construction or the buyer needs a longer period for payment of the purchase price), the Preliminary Real Estate Sale and Purchase Agreement can be concluded. The Preliminary Agreement is a contract that assumes the obligation to conclude a second, main contract later, under certain conditions and within certain deadlines. The Preliminary Agreement is usually concluded with the payment of a "down payment", usually in the amount of 10% of the agreed purchase price.

SIGNING OF THE AGREEMENT - The buyer and the seller sign the Real Estate Sale and Purchase Agreement, in which the conditions and obligations of both parties are defined in detail. In the Agreement, the seller undertakes the obligation to hand over the real estate to the buyer in ownership and possession, and the buyer undertakes to pay him the agreed purchase price.

REGISTRATION OF OWNERSHIP - After signing the Real Estate Sale and Purchase Agreement and paying the purchase price, the buyer submits a request for the registration of the real estate ownership right in the land registry. Most often, the request for pre-registration of ownership rights is submitted on the day of signing the Agreement, and on the day of payment of the entire amount of the purchase price, the request for justification of pre-registration of ownership rights is submitted.

PAYMENT OF TAXES - The buyer is obliged to pay real estate transfer tax in the amount of 3% of the agreed purchase price.

HANDOVER - After all obligations on the part of the buyer and the seller have been fulfilled, the handover of the real estate is carried out and a record of the handover of the real estate is signed. In the handover record the condition of the real estate and any defects that the seller needs to remedy are determined.