22.06.2022
The importance of filing a sales document with the Department of Cadastre and Land Management is mentioned in the fact sheet of the Department.
As stated in the Bulletin, the conclusion and signing of a Deed of Sale (POE) when buying a property is recommended in cases where the property does not have title, such as when it is under construction, or if there are financial and other unresolved issues that put off transfer of ownership to the buyer in the future. In other cases, buyers are encouraged to immediately transfer ownership to their name, in which case there is no need to conclude a Sale.
It is added that if a citizen agrees to purchase real estate and signs a contract of sale, then after notarizing it, he must submit it to the Department of Land and Land Surveys as soon as possible and no later than 6 (six) months . from the date of its signing. When submitting a POE, the provisions of the Law on the Sale of Real Estate (Special Enforcement) no. 81(I)/2011, which are intended to protect you in the event that the seller fails to comply with its contractual obligations under the POE.
The Department then lists the reasons why citizens should file a deed of sale with the Department, namely:
Firstly, after its submission, subsequent submission to the Department of Purchase and Sale for the same apartment/property by another person is not allowed.
Secondly, in cases where the seller refuses and / or does not fulfill his contractual obligations, the buyer has the right to apply to the court for the issuance of an appropriate court order in order to register real estate in his name, or compensation to him (the right to special execution of the Purchase Document – sales).
Thirdly, in the case of a task, a citizen has the right to transfer his rights and obligations defined in the power of attorney as an assignor to a third party (assignee) without the need for the written consent of the seller. That is, you can donate or sell your rights / obligations as a buyer to another person.
Fourth, if a citizen provides financing for the purchase of property, he has the right to cede to his creditor the rights arising from the POE, and thereby facilitate lending.
Fifth, in the case of purchasing a unit in a residential complex, the buyer gets the right to know the coefficient (percentage) of the unit cost in relation to the total cost of the entire complex. The seller, after obtaining a city planning permit, is obliged to determine the coefficient of value of each section of the building or shared plot and enter it in the tax register so that the buyer knows in advance what the coefficient of value of the unit he will buy. The part of the mortgage debt attributable to the buyer is determined by the coefficient of the value of each object in relation to the total value of the entire mortgaged property.
If the property is encumbered with a previous mortgage, the buyer has the right to pay the “mortgage debt” attributable to him, according to the value ratio, directly to the mortgage lender, i.e. to the financial institution, and not to the seller.
Sixth, the filing of a sales invoice creates a lien (encumbrance) on real estate, which follows in order of priority over other liens according to the date of its filing.
Seventh and last, if the deed of sale is not filed with the Department within six (6) months from the date of its signing, then when transferring the property to the name of the buyer, you will be asked to pay a transfer fee increased by 10%.
