Navigating the Legal Process of Buying a Property in Macedonia

Buying property in Macedonia can be an exciting investment opportunity, especially due to the fact that the real estate market is growing rapidly and attracting both local and international buyers. 

However, it’s important to know that the legal process of purchasing property can be complex. There are specific rules and steps that must be followed. Whether you’re a local or an international buyer, it’s essential to understand the legal steps involved to secure your investment and avoid problems later on.

Checking Property Title and Ownership

Before making any property purchase, one of the most crucial steps is verifying the property title to ensure the ownership is clear and undisputed. A proper title check helps confirm that the property is legally owned by the seller and is free from any claims, such as liens or legal disputes, that could potentially complicate the transfer of ownership.

Based on the experiences encountered in practice while representing clients in real estate purchase and sale procedures, attorney Vlado Aleksijevski from Ohrid provides a brief overview of the essential steps in any property transaction.

As he states, “Whenever you’re interested in a specific property, ask the seller to present a title deed (property ownership certificate) for:

• the property you are buying (apartment, house, commercial space, land);
• the shared areas, stairs, hallways (if you’re purchasing a residential or commercial unit in a multi-unit building);
• the land under the building (recorded in the deed with land use ‘gz’, class ‘zpz’);
• the yard space (recorded with land use ‘gz’, class ‘giz’);
• the garage space (if you have agreed on the transfer of ownership for a constructed garage space, usually in the basement).”

You can access property records through the cadastre (a government database that records detailed information about properties) to confirm the title is clear and ensure there are no legal issues tied to the property.

You can check if the property is listed under the seller’s name and whether there are any restrictions, such as mortgages or unresolved legal matters, that might affect the purchase.

Attorney Vlado Aleksijevski further adds: “It is important to determine whether the person selling the property is the sole owner. If the property being sold was acquired during the seller’s marriage, their spouse (if alive) will need to sign the (pre-)contract, even if their name is not listed in the property deed.”

Contract of Sale and Agreement Terms

The contract of sale is a crucial document in any property transaction, as it legally binds the buyer and seller to the agreed terms. It serves to protect both the buyer and the seller by establishing the expectations and obligations of each side throughout the transaction process.

The key elements of the contract typically include:

• Agreed Price and Payment Terms: The contract should specify the total purchase price and the payment schedule. This includes the deposit amount, the due date for any remaining payments, and the method of payment.
• Responsibilities of Both Parties: This can include who will cover certain costs (such as property taxes, notary fees, or transfer taxes) and any repairs or modifications to the property before the sale.

When reviewing the contract, it’s important to pay attention to the following:

• Cancellation Clauses: These clauses outline the circumstances under which either party can cancel the agreement, as well as any penalties that may apply. 
• Penalties and Breach of Contract: The contract may specify penalties in case either party fails to fulfill their obligations, such as late payments or failure to transfer the property on time. 
• Conditions Related to Property Possession: The contract should clarify the terms of possession, including the date when the buyer can take ownership of the property.

A well-structured contract of sale ensures that both parties are on the same page and provides legal protection should any issues arise during or after the sale process. Always consider a legal expert to create and review the contract before signing to safeguard your interests.

The Role of a Notary in Property Transactions

Notaries also play a critical role in the property transaction process. They authenticate documents, confirm the legitimacy of the transaction, and ensure that both parties are complying with legal requirements. 

This includes verifying the identity of the parties involved, confirming their understanding of the contract, and ensuring that the documents are legally sound. Notaries are responsible for ensuring that the contract of sale, transfer of ownership, and other related documents are valid and meet the requirements set out by Macedonian law.

Using a notary is mandatory. According to Macedonian law, the transaction cannot be finalized without the involvement of a notary.

How a Legal Expert Can Help you

Issues such as unclear property titles, disputes over property boundaries, or failure to meet legal requirements can complicate the process, but hiring a qualified real estate lawyer can help you avoid common legal pitfalls. 

It’s important to consult with legal experts who can guide you through the process and offer professional advice every step of the way. They can ensure that all legal documents are in order and resolve any disputes, allowing for a smooth and secure transaction.

For more information, fill out our contact us form at: https://imotko.mk/en/kontakt or write us an email directly at: contact@imotko.mk