As
with many European countries Slovakia has a similar process
when it comes to buying a property there. As a new EU member
the property market of Slovakia is open to all other citizens
of EU. The only restriction Slovakia has imposed is on agricultural
and forestry land.
The process of buying is simple.
Once you have picked the property you want to purchase and
the seller accepted the price, the first thing you have to
do is have a deposit of 10% of the purchase price ready as
this will secure the property for you and the legal process
can begin.
At the time of the deposit
there will be a pre-purchase agreement signed by both parties
as to make sure the parties understand their rights and obligations.
In the case of the buyer changing his mind once he has deposited
the 10%, he will be responsible to pay for any expenses incurred
so far by the agent. This is taken from the deposit already
paid and the rest is returned to the buyer.
If the same happens from the
seller's side the seller is responsible for the expenses incurred
and the buyer will be refunded his full deposit. The detailed
process is as follows:
* The surveyor will complete
his report and provide it to the solicitor so he can start
preparing the contract.
* Both the report and the
contract will be translated for you so you know what you are
signing.
* The contract is signed and
the money held by the buyer is transferred to the seller and
the main part of the process is done.
* The buyer will have to wait
for the land registry called Kataster to transfer the ownership,
but that takes only 4 weeks.
* The buyer is now a full
owner of the property.
Mortgages
Slovak banks require the following documentation when purchasing
Slovak property either as a foreign individual or Slovak national.
* Proof of address
* Passport
* 6 months recent bank statements
* Proof of income (form provided in English)
* Proof of employment abroad (Only full time employment will
be considered)
* If you are self-employed you will need to provide at least
two years tax returns and accounts, it is also recommended
you have a guarantor for the mortgage.
The mortgages are dealt with
on an individual basis with the chosen bank. The interest
rates vary with the length and the value borrowed. The interest
rates start as low as 3.99% inclusive capital repayments.
The banks only lend up to the valuation price of the property,
less deposit paid.
The kataster holds all the
relevant information about the legal state of the property.
If there are any legal disputes the registry will hold all
that information. Currently all Slovak agencies ask the seller
to provide this paper before they want to sell their property.
This can not be older than 3 months so you can be pretty sure
the property you acquired is not undergoing any legal disputes.
If you are buying flats, there
are flats which are privately owned or owned by an associated
organisation, where you only transfer the tenancy not the
ownership of these flats. Currently there are processes in
place where these associations are offering the transfer of
ownership from tenancy to private for a fee which is usually
£10-20.
The process of purchasing flats
which are not privately owned is the same as with privately
owned flats but there aren't any solicitors involved. The
legal process is done through the associated organisation,
which can be sometimes bureaucratic. The best buys are flats
with private ownership which can be easily rented out and
renovated without any problems.
In these types of flats the
owners pay maintenance fees each year which usually comes
to about £20 a year. They appoint an agent who usually
lives within the block to act on their behalf when there is
a major work to be done or any other necessary maintenance.
In both types there is a monthly
fee called 'najomne' which usually covers the use of water
supply and hot water and heating usage, as well as other minor
expenses such as communal electricity usage and lift usage
etc. All the flats are equipped with central heating which
has heating regulators attached on the radiators, and water
meters on the pipes. You only pay for what you use so you
can make some savings in your najomne payment as this will
be recalculated each year according to the usage of supplies.
The electricity is provided by the national Slovak electricity
company and the gas is through Slovenske plynarne Gas Company.
If you are planning to renovate
a flat, it is always advisable to apply for permission before
any work has started. We can advise you further if you are
interested in renovation. The steps in purchasing any other
property are the same as above it is just the flats which
can cause a bit of confusion. If in any doubts, please do
not hesitate to contact us for further information.
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