Purchasing real estate is a significant investment that requires attention to numerous details, especially the legal aspects of the transaction. In Skopje, Macedonia, the process of buying and selling real estate is governed by several laws and regulations designed to protect the interests of both parties. This article outlines the key legal aspects you should consider when buying real estate in the capital city of North Macedonia.
1. Verification of Ownership and Legal Status of the Property
Property Deed (Extract from the Cadastre):
- What is it? An official document issued by the Agency for Real Estate Cadastre containing information on ownership, size, purpose, and any encumbrances on the property.
- Why is it important? It confirms that the seller is the legitimate owner and that the property is free of mortgages, liens, or legal disputes.
Encumbrances and Legal Burdens:
- Mortgages and Liens: Check if the property is subject to a mortgage or lien in favor of a third party.
- Servitudes and Restrictions: Identify any third-party usage rights or other limitations on the property.
2. Preliminary Contract and Deposit
Preliminary Purchase Agreement:
- Contents: Includes basic details of the buyer and seller, property description, agreed price, and deadlines.
- Notarization: To be legally binding, the preliminary agreement must be notarized.
- Deposit: Typically 10% of the agreed price, serving as a guarantee of intent.
(LEVEL – Real Estate Agency in Skopje , will help you with this process)
Legal Consequences of Withdrawal:
- By the Buyer: If the buyer withdraws, the deposit is forfeited to the seller.
- By the Seller: If the seller withdraws, they are required to return double the deposit amount.
3. Final Purchase Agreement
Preparation and Content:
- Contract Details: Includes a detailed description of the property, rights and obligations of the parties, payment method, and deadlines.
- Legal Assistance: It is advisable to have the agreement drafted or reviewed by a lawyer to avoid legal deficiencies.
Notarization:
- Mandatory Procedure: The contract must be notarized in the presence of both parties.
- Identification: Parties must present valid identification documents.
4. Tax Obligations
Real Estate Transfer Tax:
- Rate: Between 2% and 4% of the property’s market value, depending on the municipality.
- Responsibility: Usually borne by the buyer unless otherwise agreed.
Payment Procedure:
- Tax Declaration: Must be submitted to the Public Revenue Office within 15 days of signing the contract.
- Payment Deadline: The tax must be paid within 15 days of receiving the tax decision.
5. Transfer of Ownership in the Cadastre
Submitting the Registration Request:
- Documents: Notarized contract, proof of tax payment, and a request for ownership registration.
- Deadlines: The request must be submitted within 15 days of notarizing the contract.
Ownership Confirmation:
- Property Deed in Your Name: After completing the process, you will receive a new property deed listing you as the owner.
6. Legal Aspects for Foreign Nationals
Restrictions and Rights:
- Purchasing Real Estate: Foreign nationals can buy apartments and commercial properties but face restrictions on purchasing land.
- Approval from the Ministry of Justice: In certain cases, special approval is required.
7. Verification of Urban Plans and Permits
Building and Usage Permits:
- Building Permit: Confirms that the property is constructed in compliance with the law.
- Usage Permit: Certifies that the property is suitable for use.
Urban Plan:
- Purpose Verification: Ensure there are no planned changes that could affect the property.
8. Other Legal Practices
Spousal Consent:
- Marital Property: If married, spousal consent may be required for purchasing or selling property.
Property Insurance:
- Insurance Policies: Consider insuring the property against natural disasters or other risks.
Consumer Protection Law:
- Buyer Rights: Familiarize yourself with your rights and options for dispute resolution.
Tips for Secure Property Purchase
- Engage Professionals: Lawyers, notaries, and real estate agents can help you avoid legal issues.
- Read Before Signing: Carefully review all documents before signing.
- Verify the Seller: Ensure the seller is legitimate and has the right to sell the property.
Conclusion
The legal aspects of purchasing real estate in Skopje, Macedonia are complex and require diligence and knowledge. With thorough preparation, consultation with professionals, and adherence to legal procedures, you can safeguard your interests and ensure a safe and successful transaction.
Note: This article is for informational purposes only and does not constitute legal advice. For specific legal matters, consult a qualified lawyer.