What You Should Know Before Signing the Contract When Buying Your First Apartment

Buying your first apartment is one of the most important steps in life, and it can be a very complex process, especially for those facing legal and financial challenges for the first time. In Serbia, more and more buyers are exploring options to purchase apartments through direct contact with investors to ensure transparency and save on costs. This guide will explain the basic steps and provide specific information about financing, legal aspects, and what to pay attention to when selecting the ideal property.

Understanding the Buying Process

The first step is understanding the process itself. After determining where you want to live, it’s important to research the available options concerning ownership documentation, property value, and negotiation possibilities with the seller.

In Serbia, the ownership documentation must be completely “clean,” meaning the property cannot be under a mortgage or legal encumbrance. You can verify the documentation and ownership record through the Republic Geodetic Authority (RGZ) or by hiring a lawyer specializing in real estate. Additionally, review and assess the market value of apartments in the chosen area. For example, apartment prices in central Belgrade significantly differ from those in the outskirts, and a market analysis can help you better understand how valuable your investment is.

Financial Aspects: From Loans to Additional Costs

The financial part of the purchase includes more than just the price of the apartment—it also includes various additional costs. Many first-time buyers use housing loans, so it’s crucial to explore different offers. Currently, interest rates for housing loans in Serbia range from 3% to 4% annually, with repayment periods of 15 to 30 years.

In addition to loans, it’s important to account for the following:

• Transfer tax: This is 2.5% of the property value, unless it is new construction, where VAT is usually already included in the price.
• Notary and lawyer fees: These services can vary depending on the value of the transaction and the complexity of the contract. Notary fees typically range from 0.1% to 0.3% of the property value, while lawyers are useful for checking the legal validity of the contract.

These are the main financial aspects you should keep in mind when buying to avoid unexpected costs and ensure a stable budget.

Reviewing the Contract and Legal Security

Signing the purchase agreement is a crucial step in the buying process. Before finalizing, be sure to hire a real estate lawyer to check all legal aspects of the contract. In addition, pay attention to the following:

• Clearly stated ownership papers, mortgage status, apartment square footage, and additional conditions are elements that should be carefully examined. When buying an apartment in new construction, deadlines for project completion and penalties for delays should be clearly defined. The contract should also include payment deadlines and any additional obligations to ensure that your rights as a buyer are protected.
• Once the contract has been reviewed and confirmed, the lawyer will help ensure that every part of the transaction is lawful and in your best interest.

What to Pay Attention to When Choosing a Property

Aside from legal security, choosing the right apartment is crucial for long-term satisfaction. Location is especially important—it will determine how accessible your property is to workplaces, schools, and other essential amenities. Apartments in central city areas are often more expensive but provide easy access to services, while suburban areas are quieter and more affordable, ideal for families seeking peace and more space.

The quality of construction is also important. Properties with good insulation and high-quality materials can save you on heating and cooling costs. Pay attention to additional amenities, such as elevators, parking, or common areas, which add value to the apartment and make daily life more comfortable.

In addition to location and quality, it’s essential to consider the size and layout of the rooms. Spacious apartments with flexible layouts are practical for family life and offer opportunities for customization based on your needs.

Your First Step Towards a Secure Investment

Buying your first apartment requires thorough preparation and being well-informed. With proper planning, you can complete the purchase without stress, confident that you are investing in long-term stability. Understanding each step in the process, from budgeting and financial aspects to legal checks and choosing a location, is crucial for a successful transaction.