When purchasing an apartment or house in Serbia, potential buyers may encounter situations where the property lacks a usage permit, even if it appears to meet all other conditions. This raises a key question—can such a property be purchased, and what are the potential risks for the buyer?
A usage permit is a crucial document that confirms the property has been built in compliance with all applicable laws and is ready for legal occupancy. Without this document, the property cannot be officially inhabited, which could lead to serious legal and financial consequences for the buyer. Despite this, properties without a usage permit remain available on the market, especially in cases of buildings under construction.
Procedure for Purchasing Property Without a Usage Permit
Purchasing a property without a usage permit typically begins with signing a preliminary contract that defines the terms of sale and specifies the subject of the agreement. In this process, the construction permit plays a key role, as it allows the identification of the property, even if it has not yet been completed.
However, without a usage permit, the property cannot be legally utilized. Buyers face legal risks, as the completion of construction and issuance of the permit are not always guaranteed. It is essential for buyers to thoroughly review all available documentation, including the construction permit, construction start notifications, and other relevant papers, before signing any agreements.
Importance of Construction and Usage Permits
Construction and usage permits form the foundation of lawful construction, adaptation, and acquisition of property ownership. These permits not only confirm that the property was built in accordance with the law but also provide legal security to the owner.
- A construction permit authorizes the start of construction and confirms that the work complies with technical and legal requirements.
- A usage permit certifies that construction has been completed and that the property can be legally used and registered as ownership.
Without these permits, any construction on the property is considered illegal, and the owner may face serious legal consequences. For instance, a property without a usage permit cannot be officially registered in land registries, denying the owner legal security and complicating future sales or inheritance of the property.
Legal Security and Consequences of Missing Permits
Under Serbian real estate laws, valid public documents are required for the registration of ownership rights. Without a construction and usage permit, a buyer risks investing in a property that cannot be legally registered, opening the door to potential legal disputes.
The law stipulates that ownership rights can only be acquired through construction if all work is performed under the proper permits. A lack of these documents exposes the owner to legal challenges, as their ownership could be disputed.
Conclusion: The Importance of Legal Security When Purchasing Real Estate
Purchasing real estate without a usage permit carries significant risks. Without this crucial document, the property cannot be legally used, registered, or sold. All potential buyers should make extra efforts to verify the documentation to ensure the property complies with all legal requirements.
For property owners, holding valid construction and usage permits not only ensures the legality of the property but also provides legal security, making it easier to manage, sell, or transfer the property. Therefore, consulting with legal and financial professionals is essential before making a decision to purchase such properties.