Buying an Apartment in Croatia Without a Real Estate Agent: Legal Risks and What to Check Before Signing

Buying an apartment in Croatia without a real estate agent may reduce transaction costs and allow you to negotiate directly with the seller. However, purchasing without an agent does not necessarily make the transaction simpler or legally safer.

Without an agent, the buyer must arrange the necessary property checks, examine the available documents, negotiate the terms of the purchase and ensure that the contract adequately protects the buyer’s interests.

The greatest risk is not buying property without an agent. It is signing a preliminary agreement or paying a deposit before checking ownership, liens, building permits and the buyer’s ability to register title.

A real estate listing, a viewing and the seller’s verbal assurances are not sufficient to establish that an apartment is legally safe to purchase. Before assuming any financial obligation, the buyer should carry out comprehensive legal due diligence on both the property and the seller.

Can You Safely Buy Property in Croatia Without a Real Estate Agent?

Yes. A real estate agent or Realtor is not legally required for the purchase of an apartment in Croatia. The buyer and seller may negotiate and enter into a transaction directly.

However, the absence of an agent means that the buyer must independently arrange all necessary legal, technical and financial checks.

Even where an agency is involved, the agent may not act exclusively in the buyer’s interests. The involvement of a real estate agency does not replace independent legal due diligence performed by a Croatian attorney representing the buyer.

Before signing any document, three fundamental questions should be answered:

• Is the seller legally entitled to sell the apartment?
• Are there any mortgages, liens, restrictions or third-party rights affecting the property?
• Will the contract allow the buyer to register ownership in the Croatian land registry?

1. Check Who Is Registered as the Owner

The first step in any Croatian property purchase should be an examination of the land registry extract. It is not sufficient for the seller to present an old purchase agreement, inheritance decision, utility bills or other documents and simply claim to be the owner.

The land registry records should be checked to determine:

• who is registered as the legal owner
• whether the registered owner is the person selling the property
• whether the seller owns the entire apartment or only a co-ownership share
• whether there are additional co-owners
• whether the registered description corresponds to the actual apartment
• whether a pending application or “plomba” has been recorded

A plomba indicates that an application affecting the property has been filed but has not yet been finally resolved. Its existence should never be ignored because the pending application may change the registered ownership or create a new encumbrance.

If the seller is married, it may also be necessary to determine whether the apartment is the seller’s separate property or marital property. The fact that only one spouse appears in the land registry does not always mean that the other spouse has no relevant rights.

Additional caution is necessary when the property is being sold by:

• an heir who has not yet registered ownership
• an attorney-in-fact acting under a power of attorney
• a person relying on an unregistered purchase agreement
• a company whose representative’s authority must be verified

2. Check for Mortgages, Liens and Third-Party Rights

The encumbrance section of the Croatian land registry may contain rights and restrictions that directly affect the buyer’s legal position.

The due diligence process should determine whether the apartment is affected by:

• mortgages
• enforcement or foreclosure proceedings
• notations of pending litigation
• restrictions on sale or further encumbrance
• rights of residence
• usufruct rights
• easements
• rights of first refusal
• other third-party rights or claims

An existing mortgage does not necessarily prevent the sale. However, the payment of the purchase price and the release of the mortgage must be carefully coordinated and clearly regulated by the contract.

Appropriate documentation should be obtained from the lender or other secured creditor. The agreement may provide for part of the purchase price to be paid directly to the creditor in exchange for the documents required to release the mortgage.

A buyer should not transfer the full purchase price to the seller merely on the basis of a verbal promise that the mortgage or lien will be removed later.

3. Compare the Land Registry, Cadastre and Actual Property

The information recorded in the Croatian land registry, the cadastral records and the physical condition of the property may not always be consistent.

Differences may relate to:

• the registered floor area
• the property address
• the cadastral parcel number
• the description of the building
• the designation of the apartment

The buyer should also confirm whether all accessory areas advertised as part of the apartment are legally included in the sale, such as:

• a garage or parking space
• a storage room
• a terrace
• a garden
• an attic or basement area

The fact that the seller has used a parking space, garden or storage room for many years does not necessarily mean that the seller owns it or can legally transfer ownership to the buyer.

If the apartment has not been properly registered as a separate condominium unit and the seller is offering only a co-ownership share in the entire building, the legal risk is significantly higher.

Statements that a particular co-ownership share “corresponds” to a particular apartment require a careful review of the ownership documents, co-owner agreements, construction records and actual use of the building.

4. Verify Building Permits and the Legal Status of the Property

Before purchasing an apartment in Croatia, the buyer should request all available documents relating to the construction and lawful use of the building.

Depending on the age and status of the property, the relevant documents may include:

• a building permit
• an occupancy or use permit
• a legalization decision
• another legally recognized document confirming lawful construction
• the main architectural project and related technical records

Particular attention should be given to alterations or extensions carried out after the original construction, including:

• enclosing a balcony or terrace
• incorporating a common hallway into the apartment
• converting an attic into living space
• altering the internal layout
• adding rooms or other structures

Unauthorized construction work may create difficulties when obtaining a mortgage, registering the apartment, reselling the property or carrying out future administrative procedures.

5. Request the Energy Performance Certificate

Subject to statutory exceptions, the seller must obtain an energy performance certificate before selling the apartment. The certificate should be presented to a prospective buyer and delivered to the buyer or provided as a copy.

The certificate contains information about the energy characteristics and energy rating of the building or apartment. Although it is not proof of ownership or lawful construction, it provides useful information regarding energy efficiency and expected consumption.

6. Check for Outstanding Property-Related Debts

Before completing the transaction, the buyer should investigate whether there are unpaid obligations associated with the apartment, including:

• building reserve fund contributions
• amounts owed to the building manager
• unpaid electricity, water, gas or other utility bills
• outstanding local charges
• financial obligations relating to work on common parts of the building

The seller may be asked to provide certificates or statements confirming the status of these obligations. The purchase agreement should specify that the seller is responsible for liabilities arising before the handover date and that the buyer is responsible for liabilities arising afterward.

The buyer should also investigate whether the co-owners have already approved major work on the roof, façade, elevator or other common areas. Such decisions may lead to increased reserve fund contributions or other substantial costs after the purchase.

7. Determine Who Is Occupying the Apartment

The registered owner and the person occupying the apartment are not always the same. The apartment may be leased, occupied by a family member or subject to a registered or contractual right of residence.

Before purchasing, the buyer should determine:

• who currently occupies the apartment
• whether a lease agreement exists
• the duration and termination terms of the lease
• when and under what conditions the apartment must be vacated
• whether anyone claims a right to use or reside in the property

The purchase agreement should contain a clear handover deadline, an obligation to deliver the apartment vacant and free of occupants, and appropriate consequences if the seller fails to deliver possession on time.

8. Do Not Pay a Deposit Before Legal Due Diligence

Prospective buyers are often asked to pay a reservation fee or deposit immediately so that the property can be taken off the market. This is also the stage at which many disputes begin.

Before making any payment, the buyer should know:

• who will receive the funds
• which document provides the legal basis for payment
• whether the payment is an advance payment, earnest money or a cancellation payment
• under which circumstances the money must be refunded
• what happens if the buyer’s mortgage application is rejected
• what happens if the legal review identifies a defect
• the deadline for signing the final purchase agreement

Under Croatian law, an advance payment, earnest money known as kapara, and earnest money agreed as a cancellation right may have different legal consequences. The nature of the payment and the consequences of non-performance must therefore be stated clearly in a written agreement.

It is particularly risky to transfer funds solely on the basis of a receipt, email, text message or generic reservation form that has not been adapted to the specific property and transaction.

9. A Croatian Preliminary Agreement Is Legally Binding

A preliminary agreement is not merely a non-binding reservation. It generally obliges the parties to enter into the final purchase agreement under the agreed terms.

For this reason, the preliminary agreement should not be signed before the legal due diligence has been completed.

A properly prepared preliminary agreement should address:

• the full identity of the buyer and seller
• the exact land registry description of the property
• the total purchase price
• the payment method and deadlines
• the amount and legal nature of the deposit
• the deadline for signing the final purchase agreement
• the procedure for releasing existing mortgages or liens
• the consequences of a rejected mortgage application
• the seller’s obligation to resolve identified legal defects
• the date and conditions of possession
• the consequences of withdrawal or breach of contract

If the purchase is being financed by a bank, the preliminary agreement should contain an appropriate financing contingency. Without such protection, the buyer may lose the deposit even if the required loan is not approved.

10. The Purchase Agreement Must Permit Registration of Ownership

The buyer does not become the legal owner merely by signing the purchase agreement or paying the purchase price. Under Croatian law, ownership acquired through a legal transaction is generally obtained by registration in the land registry.

The purchase agreement must therefore contain an accurate description of the property and the seller’s valid consent to the registration of the buyer’s ownership.

This consent is commonly known in Croatia as the clausula intabulandi or tabularna izjava.

Depending on the agreed payment structure, the registration consent may:

• be included directly in the purchase agreement
• be issued as a separate document after full payment
• be held under an agreed escrow arrangement until the contractual conditions are fulfilled

The contract should clearly determine when and under what conditions the buyer receives a document suitable for registration.

The following stages must be properly coordinated:

• payment of the purchase price
• release of existing mortgages and liens
• delivery of the registration consent
• filing of the land registry application
• handover of the apartment

11. Document the Handover of the Apartment

The physical handover should be recorded in a written handover report. The report should include:

• the date and time of handover
• the number of keys delivered
• utility meter readings
• the condition of the apartment
• a list of furniture and appliances included in the sale
• any visible damage
• the documents delivered to the buyer
• arrangements for transferring utility accounts

If the apartment is sold furnished, an inventory should be attached to the purchase agreement or handover report. Photographs may provide additional evidence of the condition of the property at the time of delivery.

12. Consider Hidden Defects and Verbal Promises

The seller may verbally promise to repair the installations, resolve a moisture problem, empty the apartment or leave certain furniture behind. If such a promise is material to the buyer’s decision, it should be included in the written agreement.

A technical inspection should consider:

• moisture and water penetration
• electrical and plumbing systems
• windows, roof and façade
• heating and air-conditioning systems
• common parts of the building
• possible structural damage

Legal due diligence by a Croatian property lawyer should, where appropriate, be supplemented by a technical inspection conducted by an architect, civil engineer or another qualified professional.

Common Mistakes When Buying Property in Croatia Without an Agent

The following mistakes frequently occur in Croatian real estate transactions:

• paying a deposit before reviewing the documentation
• relying on the seller’s verbal representations
• checking ownership but failing to examine registered encumbrances
• ignoring a pending land registry application or plomba
• purchasing a parking space or storage room that is not properly registered
• signing a generic contract downloaded from the internet
• paying the price without a secure procedure for releasing a mortgage
• accepting an unclear or insufficient registration consent
• failing to regulate the handover date
• failing to include a financing contingency
• delaying the filing of the ownership registration application

Do You Need a Lawyer to Buy Property in Croatia?

A lawyer is not merely responsible for drafting the purchase agreement. A Croatian real estate attorney can investigate title, review encumbrances and building documentation, identify legal risks and coordinate the payment, release of liens and registration of ownership.

Independent legal assistance is particularly important when:

• the seller is not registered as the owner
• a mortgage, plomba or other notation is recorded
• the apartment is not registered as a separate condominium unit
• the cadastral and land registry records do not match
• the property may constitute marital property
• the sale is conducted under a power of attorney
• the seller acquired the apartment through inheritance
• the purchase is financed by a mortgage
• the buyer is a foreign national
• the apartment is being purchased during construction or directly from a developer

The objective is to ensure that, after paying the purchase price, the buyer can take possession and register ownership without unexpected liens, third-party claims or legal disputes.

Important Rules for US and UK Citizens Buying Property in Croatia

Citizens of the United States and the United Kingdom should not assume that the same acquisition rules apply to them as to citizens of European Union member states.

Foreign nationals from countries outside the European Union, Iceland, Liechtenstein, Norway and Switzerland generally acquire real estate in Croatia subject to reciprocity and consent issued through an administrative procedure before the competent Croatian ministry.

Whether reciprocity exists and whether ministerial consent is required must be checked according to the buyer’s citizenship, the type of property and the circumstances of the transaction.

The application procedure may require documents such as:

• the legal basis for the acquisition, such as the purchase agreement
• proof of the seller’s ownership
• a certificate concerning the property’s planning status
• proof of the buyer’s citizenship
• a power of attorney, where the buyer is represented
• the appointment of a person in Croatia authorized to receive official documents

The purchase agreement should be drafted with these requirements in mind. The buyer should also understand how the consent procedure affects payment, possession and registration of ownership.

Special restrictions may apply to certain categories of land and protected areas. The legal position should therefore be established before the buyer pays a deposit or enters into a binding preliminary agreement.

Differences Between Croatian and US or UK Property Transactions

The role of a Croatian notary differs from the role foreign buyers may expect based on transactions in the United States or the United Kingdom.

Notarization of the seller’s signature does not by itself mean that:

• the contract protects the buyer’s interests
• the title has been fully investigated
• the building was lawfully constructed
• all liens and third-party rights have been identified
• the buyer is guaranteed to become the registered owner

Croatia also does not use precisely the same closing process, title insurance system or conveyancing structure found in parts of the United States and the United Kingdom.

Foreign buyers should therefore avoid relying on assumptions based on their home jurisdiction. The transaction documents and closing process must comply with Croatian law and Croatian land registry requirements.

Buying a Croatian Apartment Remotely

A buyer who cannot remain in Croatia throughout the transaction may authorize a Croatian lawyer to carry out specific steps under a power of attorney.

Depending on the scope of the authorization, the lawyer may be able to:

• conduct legal due diligence
• obtain and review official records
• negotiate and prepare the transaction documents
• submit applications to the competent authorities
• file the application for registration of ownership
• coordinate the closing and handover process

A power of attorney signed abroad may require notarization, an Apostille or another form of authentication, depending on where and how it is executed. The required form should be confirmed before signing the document abroad.

Conclusion: Complete the Legal Review Before Paying a Deposit

Buying an apartment in Croatia without a real estate agent can be a successful and secure transaction, but it requires systematic due diligence and a carefully drafted contract.

A buyer should not allow pressure from other interested parties, an attractive price or a demand for immediate payment to result in signing a preliminary agreement or paying a deposit before the legal position has been fully established.

The cost of legal due diligence is generally small compared with the potential consequences of purchasing a property affected by disputed ownership, mortgages, third-party rights, unlawful construction or incomplete documentation.