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The buyer enters into a preliminary agreement with the seller, or a deposit agreement with the seller to secure the chosen property.
To make a deposit agreement, foreign citizens must have a foreign passport and documentary proof of the availability of funds and their origin. The latter is required, if the deposit exceeds €7,000 (the deposit amount is included in the property fee.) The seller, in addition to the passport, must submit documents confirming their ownership (hipoteka).
To sign the document, the parties meet at the notary, who necessarily checks the property. It makes a request to the National Cadastral Agency, which sends all the necessary up-to-date information about the object in electronic form within one and a half to two hours. The document indicates the location of the property, the name of the owner, the area, as well as information about whether this property is the subject of disputes, and so on.
This extract from the Cadastral Agency is valid for 72 hours, during which a preliminary contract must be concluded (otherwise, the notary will have to make the request again). During this time, the buyer can conduct additional verification of the object, for example, if there are disagreements about the compliance of the property boundaries specified in the layout. Such verification is carried out by a certified surveyor at the buyer's expense. Cost - about €1 per sq. m.
After that, the notary draws up the text of the contract and certifies it. The document specifies the personal data and details of the parties, information about the property, the transaction cost, terms and conditions of payment, the date of conclusion of the contract, and guarantees. The rights and obligations of the parties must be specified. If the buyer does not fulfill its obligations, they loose the deposit. If the transaction fails due to the seller's fault, then the seller returns the deposit to the buyer in double the amount.
The agreement is drawn up in Albanian and your languege in three or four copies, which have the same legal force.
Then the notary blocks the property in the Cadastral Agency for the period specified in the contract. After that, no one can perform any legal actions with real estate.
Finally, the buyer makes a deposit. This is usually 10-30% of the property value. The amount of prepayment depends on the seller and their willingness to make a concession. The remaining amount is paid gradually.
The seller either gives a receipt to the buyer for the advance amount received or the payment is made in the presence of a notary and the fact of transfer of cash is reflected in the contract. By paying the deposit, the buyer reserves the property.
The payment is made within a week (for 100% payment) to six months (for installments) from the date of signing the deposit agreement. According to the current legislation of Albania, the buyer transfers money to the transit settlement account of the notary, which contributes to the transparency of the transaction.
The last payment is made at this stage. The main contract of sale is signed when the buyer has fully transferred the entire amount under the contract to the notary's transit account.
If the transaction is concluded with a developer, then the notarized bill of sale or final contract that secures the buyer's ownership of real estate in Albania is signed after the construction is completed and the property is put into operation. This is recorded in the state register, confirming the official transfer of title rights of the owner.
A translator certified by the Ministry of Justice of Albania from the language spoken by the buyer must be present at the signing of the final purchase and sale agreement. The main contract is drawn up in two languages: Albanian and the buyer's native language (in four copies), and the buyer must understand the text.
The document specifies the personal data and details of the parties, the cadastral number of the property and its price. Then there is the signing and attaching the notary's signature.
After the notary has certified the contract of sale, the transaction is registered with the National Cadastral Agency and a record is made about the new owner of the residential property. In this way, ownership is transferred.
Albanian legislation provides for the issuance of a certificate of ownership in the name of the new owner within no more than 30 working days after the notary registration of the contract of sale in the Cadastral Agency.
The certificate can be obtained by both the buyer and their authorized representative. Today, the certificate is issued both in paper and electronic form (the notary directly sends the new owner a link to download the document).
Remote Transaction
If the new owner is a citizen of another country and cannot be present in person when making the transaction, an employee of an Albanian real estate Agency or another reliable individual may appear instead.
It is important to properly issue a power of attorney to represent your interests in the offices of Albania. It must include the full scope of functions, be notarized and translated into Albanian by a licensed translator.
The buyer pays for the services of specialists accompanying the transaction: lawyers, notaries, translators, etc. The notary's fee will be from €150 to €450 according to the established state rates, the realtor - from €1,000, the translator - €11-12 per page.
The buyer pays for agency services in two steps: 50% at the time of signing the deposit agreement and the second 50% when the buyer receives a certificate of ownership.
Total turnkey costs will be no more than 4% of the property value, but a minimum of €1,500.
In addition to the cost of specialist services, the buyer pays a state fee for registering the property in their own name. The amount of the fee is approximately €80. If you buy a new building, you will have to add a municipal fee. It is from €3 to €10 per sq.m depending on the region of Albania.
In the case of a new building, you will also need to pay for connecting water and electricity to the apartment. The payment is made once at the local utility office in the amount of €170 per service (including the purchase and installation of meters).
No other taxes are provided. Land and real estate transactions in Albania are not subject to VAT.
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