CROATIA REAL ESTATE INVESTMENT BUYING STEPS

The Pre-contract

The next point to consider is whether you are in a position to pay just a deposit or the whole amount. Many people buy property in Croatia with a mixture of savings and a loan against equity in a UK property. Frequently, they will transfer their deposit into their local bank account from savings and arrange to come out a few days later to sign a pre-contract. The balance then follows in two to three weeks once they can get it out of their lender, at which time the vendor signs the full contract. Without a previously established bank account, another trip would be necessary. This is why setting it up, even before selecting a property, pays off.

Paying a reservation deposit guarantees that the property you have chosen is taken off the market and is reserved for you at the agreed fixed price.

The pre-contract acts as a receipt for the money and ties it closely to the property. It will specify when the balance is to be paid and this date should be carefully considered and agreed with the vendor. You should allow enough time for withdrawing money from any deposit account it may be held in, or allow a margin of error from a lender's assurances of when a UK loan might be available.

In the undesired case you fail to complete on the agreed date the vendor has the right to retain the deposit. In case the vendor withdraws, he has to pay you double the deposit.

BROKER, real estate agency team.