Purchasing real estate is one of the most significant financial decisions in most people's lives. The process can be complex and includes many legal aspects that need to be taken into account to protect your interests.
This guide will help you understand the process of buying real estate in Macedonia, from the initial verification of the documentation to the final registration of the ownership right.
Checking the legal status of the real estate
Before buying real estate, the most important thing is to check its legal status. This is done by requesting a title deed from the Real Estate Cadastre Agency. The title deed contains information about the legal owner, the area, encumbrances on the real estate (mortgages, easements) and other legal restrictions.
Check if the seller is the legal owner of the property and if it is encumbered with any encumbrances. If the property is encumbered with a mortgage, the seller must clear it before the sale or it must be cleared with the proceeds of the sale.
Also, check if the property is subject to litigation or if there are other legal obstacles to its sale. You can do this by requesting a certificate from the primary court. Consulting a lawyer during this check is very helpful.
Pre-contract and sales contract
Once you have agreed with the seller, a pre-purchase agreement is usually signed. The pre-agreement is a document with which both parties undertake to enter into a sales contract under certain conditions and within a certain period. With the pre-negotiation, a down payment is paid - part of the purchase price.
The contract for the purchase and sale of real estate must be in writing and signed before a notary public. The notary checks the identification of the parties, whether the parties understand the content of the contract and whether they participate voluntarily. The notary also checks the title deed and makes sure that the contract is legally correct.
The contract must contain an accurate description of the real estate, the purchase price, the deadline for payment and the deadline for handing over the real estate in possession. It is important to agree on who will pay the notary, taxes and registration costs - usually these costs are shared between the buyer and the seller.
Taxes, charges and registration
When purchasing real estate, the buyer pays real estate sales tax. This tax amounts to 3% of the market value of the real estate or the agreed price, whichever is higher. The tax base is determined by the Public Revenue Administration based on the assessment of the market value.
Additional costs include costs for notarization, costs for obtaining a title deed, court certificates and other documents, as well as costs for registering the right of ownership in the cadastre. All these costs can amount from 3% to 5% of the purchase price.
After the contract is signed in front of a notary, the contract is submitted to the Real Estate Cadastre Agency for the purpose of registration of the ownership right. Registration usually takes several weeks. From the moment of registration, you are the legal owner of the real estate and can dispose of it.
Buying real estate is a complex process that requires attention to many legal details. It is best to hire a lawyer who will check the documentation and represent you in the whole process.
Do not rush to make a decision and carefully check the legal status of the real estate. Good legal preparation and counseling can protect you from many potential problems and financial losses.
