Could I sell property?

[PeterG]

Can anyone help me? I am in the process of purchasing a house in Northern Dalmatia and hope to return soon to sign both the pre-contract and the contract and pay a 20% deposit. I understand that the Ministry of Foreign Affairs then has to grant permission to complete the sale and that this can take from 3 months to years? I would like to work on the property whilst waiting for permission, do I have to pay in full and complete the contract and hope that I will get permission and if so what is my position should the Ministry refuse permission, can I sell the property to another buyer as I would not wholly be the registered owner ?

[bheywood]

Hi there

As far as I understand it, you must pay the purchase price in full on signature of the contract - the 5% property tax is payable later, when you are fully entered onto the land registry - and yes, this can take up to two years!

The reason is that the Croatian authorities took one look at Spain and realised the last thing they wanted was a bunch of ex-cons and undesirables buying up all their coastline - the long wait has become something of a vetting procedure. However, I think it may also be drawn out to stop foreigners buying property and then selling it on for a cheap buck.

Essentially I don't think you have anything to worry about unless you have a salubrious past! There are plenty of people on this forum who have waited 18 months+, and some who have been registered in 12 months, but I've yet to come across a refusal. We've just bought a place and our lawyer assures us that very few people get refused.

That said, if you have major work to do and you want to get started I would suggest going the Croatian company route (c.£5000 extra, but you get registered immediately, apparently). If this doesn't appeal, my advice would be to pay an extra £250 and get a so-called "mortgage" agreement as a rider to your main contract - this basically declares that you have paid for this property and that if refused by the land registry you may sell again for the amount you bought it for. The legal position on these agreements is a bit fuzzy, but it's happening a lot now regardless. Of course such an extra would preclude your doing lots of work, as you can only sell for however much you paid.

It sounds frightening, but it isn't. As said before, I've not heard of anyone who's been refused, but maybe the more established forum members here know different?

[alsdoubles]

Only one reply to this, but it looks incredibly important for foreign buyers. Bheywood appears to give a whole lot of good info. Well delivered. But I am not sure of the facts. Clarity of the facts would be useful. From someoe who 'really knows!' It would appear no-one knows.
Deposit...10%. Then possibly you get a promisary to buy, the buyer can actually go forward. How long it takes I really do not know. I did it the easy way with my wife as the Croatian buyer but, seven months later, we still do not have the final document. If I were you and it's bloody hard when you don't speak the language, I would TRY and get some co-operation from the seller. And if all parties are genuine, you should come to an agreement. Interesting topic. I'd like to come back and see some real solid answers.
Basically in grey October in Croatia, selling is virtually impossible, unless to a Croat.

[elaine]

I bought my holiday flat in Labin at the end of October 2001 (paying the full price) and got a solicitor to make the necessary application for permission. This came through around the middle of April 2002. No problem. Now I'm looking for something a little bit bigger and am advised there's no problem if I want to sell and buy another property.
I think the key is getting a good solicitor, with the current delays being due to the fact that there are more foreigners wishing to buy. Personally, I think there shold be some sort of qualifying period i.e. at least 10 years of holidaying in the area. "Carpetbaggers" should not be allowed in!!