The process for purchase and sale of real estate in North Macedonia is one of the safest and most reliable in the whole Europe.
Th purchase and sale of real estate in North Macedonia are governed by a structured process involving multiple key actors, including Law firms, Notaries and the Real Estate Cadastre Agency. This collaborative approach serves to fortify the legal safeguards for both natural and legal entities entering into such transactions. The same methodological framework governs the establishment of contractual relationships between parties.
The prerequisites and stipulations for the formation and maintenance of a legally binding Agreement are as follows:
- Element of Volition: For an Agreement to be effectively constituted and sustained, it is imperative that the contracting parties expressly manifest their unencumbered intent to engage in the Agreement.
- Aspect of Subject Matter: In accordance with the provisions of the Law on Obligatory Relations (“ZOO”), the subject matter—comprising the contractual obligations—must be viable, permissible, and precisely defined. The ZOO mandates that if the subject matter of an obligation is unfeasible, impermissible, indefinite, or uncertain, the contract shall be deemed null and void.
- Foundation: Furthermore, the law dictates that every contractual obligation must possess a valid foundation. This foundation is considered valid if it aligns with the provisions of the Constitution, legal statutes, and established customs.
- Capacity Criterion: The ZOO also stipulates that all contracting parties must possess legal and commercial capacity for an Agreement to be deemed valid.
- Absence of Volitional Defects: During the negotiation and finalization of an Agreement, the volition of the contracting parties must remain uninhibited and resolute, in harmony with the principles of conscientiousness and integrity.
- Formal Requirement: Agreements acquire legal efficacy when they are concluded in conformity with the requisite legal form. All contracts for the purchase and sale of real estate must be documented in writing and substantiated by a proficient notary public.
The process of selecting real estate can be delineated into distinct phases:
Phase 1: As a prospective buyer, diligent attention must be devoted to ascertain the proper registration and possession of a title deed for the selected property. In instances of properties under construction, the presence of a notice sheet should be confirmed, alongside an examination of any encumbrances, such as liens or mortgages. In this stage, the engagement of a law firm is crucial to safeguard rights and execute due diligence.
Phase 2: Post-conduction of requisite checks, pursuant to legal mandates, a law firm is mandated to prepare a comprehensive purchase and sale contract for the chosen real estate.
Phase 3: Once the contract is formulated, mutually endorsed, and officially stamped by legal authorities, it is subsequently submitted, along with supplementary documentation, to the local tax authority for the assessment of sales tax. Notably, the real estate sales tax within the region is highly competitive and one of the lowest, spanning from 2% to 4% of the assessed property value.
Phase 4: Upon approval and implementation of the Real Estate Sales Tax Decision, the Agreement attains solemnity through the oversight of a competent Notary.
Phase 5: Subsequent to the solemnization, the notary promptly instigates the process of ownership registration through enrollment within the Real Estate Cadastre.
In summation, the successful realization of a real estate purchase and sale contract necessitates the engagement of a proficient law firm, ensuring the preservation of rights throughout the transaction’s entirety and a law firm that furnishes advisory services concerning the effective execution of the process, culminating in the preparation of an Agreement that maximizes protective measures for rights.
It is pertinent to underscore that the real estate acquisition and transfer procedure within North Macedonia upholds a reputation for being one of Europe’s most dependable, safe and expeditious. Should additional information or legal counsel be required, we invite you to initiate correspondence with our law firm, equipped to furnish apt solutions and legal guidance pertinent to Real Estate Purchase Agreements.