Things to know when buying property in Croatia Part 2
If you like the house enough, you might be prepared to sort out the title issues in advance, and bear these costs. However, you need to ensure the vendor will work with you on the ownership issues. Once the reserve deposit is made, a pre contract is signed by the purchaser and 15% of the price less the reserve deposit is paid.
This deposit is important because, if the purchaser does not make the rest of the payments on time, he or she can lose their deposit. If the vendor sells the Croatia property to another person or entity, they must refund the purchaser twice the amount of the deposit. If the purchaser buys the Croatia property through a Croatian company, they don't have to seek approval from the Ministry of Law and the Ministry of Foreign Affairs.
This approval is required for individual purchasers and can take three to 12 months to receive. If people are purchasing a resale Croatia property and want to pay for and move into their property prior to die approval being received, their lawyer can arrange for them to place a mortgage on the property to secure it and also put a clause into the purchase contract which allows them to dispose of the property should they not receive the necessary approval.
Purchasers need to take their own legal advice before taking this option. It would be highly unusual for people not to get the necessary approvals; this should only happen if the person has a criminal background or is a security risk. It is also important to ask the Croatian lawyer to draft a will when you are signing the deeds of your Croatia property.
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