Croatia Approves Real Estate Reform: What Buyers, Sellers and Agents Must Know

Croatia’s real estate reform: a clear win for consumer protection

The Croatian Government has approved a draft law aimed at reforming the real estate Croatia market, and that matters to anyone buying, selling or renting property here. We opened this story with a simple question: will the changes actually make transactions fairer and more transparent? Early signs suggest yes, but the details matter.

Passed by ministers on 30 May 2026, the proposed legislation is framed around improving transparency and strengthening consumer protection in property deals. It is now set to move through the parliamentary and regulatory procedures before becoming binding law, which means the rules could be amended during the legislative process. Our analysis below breaks down the measures, the likely impact on buyers and sellers, and practical steps for anyone active in Croatia’s housing market.

What the proposed law changes — the headline reforms

The draft law clarifies relationships between buyers, sellers, tenants and estate agencies and sets standards for intermediary services. Key points from the government announcement and industry comments are:

• Government approval date: 30 May 2026.
• Primary objectives: increase transparency and provide greater security for citizens in property transactions.
• Agency conduct: agencies will not be allowed to make property viewings conditional on a buyer signing an agreement with the agency.
• Agency discretion: agencies retain the right to refuse to show a property at their discretion.
• Service standards: clearer rules for services provided by intermediaries, reflecting growing expectations for marketing, video presentations and availability.

Ivan Jelaska, president of the Croatian Association of Real Estate Intermediaries, explained on the HRT programme Potrošački kod that the law aims to reduce confusion over commissions and relationships while protecting consumers. He warned, however, that some public misunderstanding has arisen about commissions — buyers are still free to engage agencies, and agencies still can charge for services where lawfully agreed.

How buyers and tenants will be affected

For prospective buyers and renters the most immediate and practical change is access to viewings. Under the draft law:

• Property viewings cannot be made conditional on the buyer entering into an agency contract.
• Agencies may refuse to show a property, but refusal cannot be tied to a requirement to sign with the agency first.
• Viewings are generally free under current practice and the proposed law, though exceptions are allowed if viewing fees are explicitly stated in the agency’s terms and the prospective buyer is notified in advance.

What this means in day-to-day terms:

• Buyers can request to see properties without being pressured into signing exclusive or non-exclusive agency mandates on the spot.
• Buyers should still expect to be asked for identification and contact details for security and record-keeping.
• Where an agency charges for a viewing, it must disclose that fee upfront — otherwise standard practice remains free viewings.

From an investor perspective, the reform reduces a friction point. When investors evaluate multiple properties quickly, being forced into bilateral agreements to view homes can add cost and slow down deal flow. Removing that barrier should improve market liquidity for serious buyers, though it may also encourage agencies to tighten pre-screening or adopt other measures to protect their time and listing exposure.

What agents and agencies need to change in practice

The market context is important: there are around 1,500 agencies operating in Croatia today, a number that has climbed rapidly in recent years. With more competition, sellers and buyers expect higher standards of marketing, rapid responsiveness and professional presentation.

For agents the draft law will require operational and contract changes:

• Contracts must no longer be a precondition for viewings.
• Business terms should clearly disclose any viewing fees and conditions for charging such fees.
• Agents should be able to provide licence details and identify themselves on request.
• Agencies should review internal compliance policies to avoid penalties once the law is finalised.

Ivan Jelaska said the market has shifted: sellers want comprehensive marketing strategies including video presentations and high-quality service. That change in demand will act as a filter, he said, separating agencies that adapt from those that fail to meet modern buyers’ expectations.

From a business model perspective, agencies may respond in several ways:

• Strengthen pre-qualification processes to reduce time wasted on uncommitted viewers.
• Introduce clear, published terms for paid services such as virtual tours, priority viewings or dedicated consultancy, ensuring disclosure rules are followed.
• Compete on digital marketing and value-added services rather than exclusivity clauses that can now be limited.

These responses will shape which agencies thrive. Our view: firms that standardise transparent pricing and invest in professional marketing will be better placed to compete when the law is final.

The problem of unregistered agents and why licensing matters

One of the biggest practical concerns highlighted by industry insiders is illegal or unregistered operation. Real estate agent Filip Brkan emphasised that many consumer complaints relate to agencies working outside the legal framework.

Key takeaways on licensing and verification:

• Licensed agents must be able to provide their full name, agency name and licence number on request.
• If an agent refuses to provide licence details, buyers and sellers should refuse to engage.
• Unregistered agencies increase transaction risk: title mistakes, poor contract practices and lack of recourse when disputes arise.

We recommend a simple verification checklist for anyone dealing with agencies:

• Ask for the agent’s licence number and cross-check with the official registry where possible.
• Request written confirmation of the agency’s terms of business, including any fees for services and the scope of representation.
• Insist on a written receipt for any payment and a copy of any contract before signing.

This is not legal advice, but basic due diligence. Given the prevalence of unregistered operators, enforcement and consumer education will be critical once the law advances.

Market context: competition, service standards and likely consolidation

With approximately 1,500 agencies, competition in Croatia’s property market is intense. Jelaska pointed out that this growth has reshaped expectations. Sellers increasingly demand:

• Professional marketing and listings
• High-quality photo and video presentations
• Consistent availability and rapid response times

We expect these pressures to lead to a degree of market consolidation. Agencies that fail to meet higher service expectations or that do not adopt transparent business practices will find it harder to retain listings. At the same time, specialised firms focused on luxury, holiday lettings or commercial property may expand their market share by offering niche expertise.

For investors and overseas buyers, two things matter:

• Quality of agency services affects transaction speed and price negotiation.
• The ability to verify an agent’s licence reduces legal and financial risk.

We advise investors to prioritise established, licensed agencies with documented marketing track records and transparent terms of business.

Potential unintended consequences and risks

Reform that strengthens consumer protections can have side effects. Consider these risks:

• Agencies may refuse more viewings to reduce exposure of listings to casual viewers, which could limit access for genuine buyers.
• Where viewing fees are introduced and poorly regulated, disputes could arise over disclosure and refund practices.
• Smaller agencies may struggle with new compliance costs and cease trading, which could reduce local coverage in less liquid markets.
• Enforcement capacity matters: a law without active licensing checks and sanctions against unregistered operators will leave buyers exposed.

We expect regulators and trade groups to face pressure to set up clear enforcement mechanisms and public registries so consumers can check licences easily.

Practical steps for buyers, sellers and investors now

Whether you are buying, selling or renting, take these practical steps today while the law moves through parliament:

• Always ask an agent for their full name, agency name and licence number before any substantive engagement.
• Demand written terms of business that state whether viewings are free or charged and how fees are calculated.
• Keep records: save emails, screenshots of listings, and copies of any agreements.
• Compare agencies: check reviews, sample marketing materials and response times.
• For investors, factor verification and compliance checks into due diligence and acquisition timetables.

These actions are low-cost but high-value safeguards.