pro Guide for real estate comparison

To print this article, you just need to register or log in to Mondaq.com.

1 Legal basis

1.1 What legislation governs real estate in your jurisdiction?

• Real Estate Transactions Act;
• Farmland Act;
• Forest Law;
• The Law on the Basis of Property Relations;
• Obligations Act (with accompanying regulations);
• Housing and Buildings and Maintenance Act;
• Planning and Building Act;
• Mining and Exploration Law;
• Public Property Law;
• Expropriation Law;
• Law on Pledge;
• Law on the procedure for cadastral registration of real estate and lines.

1.2 What special regulations apply to different types of real estate?

The law on the fundamentals of property relations stipulates that individuals and legal entities can have ownership rights to: residential buildings; apartments; commercial buildings; commercial premises; agricultural land; and other real estate, except for natural resources owned by the state. Additionally, individuals and legal entities can have ownership rights to: certain goods in common use and building plots in accordance with the law; as well as forests and forest lands within the limits established by law. The law on state property establishes a different legal regime for real estate that is state-owned (building plots, agricultural land, water bodies, forests, and forest lands), such as: natural resources; goods of public interest; and goods for common use.

Natural resources: The following natural resources belong to the Serbian state: waters, watercourses and their sources; mineral resources; underground waters; geothermal and other geological resources; reserves of mineral raw materials; and other goods defined as natural resources in accordance with special laws. The exploitation and management of natural resources are regulated by special laws. Additionally, a concession or right to use (i.e., exploit) natural resources can be obtained in accordance with special laws. Fees for the use of natural resources are paid to the Serbian state, the autonomous province, and the local government authority within whose territory the natural resources are located, in accordance with special laws.

Public interest goods: These goods belong to the state and are defined by law as public interest goods (for example, agricultural land, forests and forest land, water bodies, water facilities, protected natural sites, cultural values), and therefore they enjoy special protection.

Public goods: These goods belong to the state and are those that, by their nature, are intended for use by everyone and are defined by law as such (for example, public roads, public railways, bridges and tunnels on public roads, railways, streets, squares, parks, border crossing points). Rights provided by special laws (such as concessions, leases) can be obtained for public goods.

2 Property Rights

2.1 What types of property rights exist in your jurisdiction?

• property rights (free ownership), joint ownership, and common ownership;
• right of servitude;
• mortgage (collateral);
• right of ownership and use.

2.2 What ownership structures are typically used in your jurisdiction?

Individuals and legal entities classified as such under current legislation can have various forms of ownership (for example, partnerships, joint-stock companies, limited liability companies, non-governmental organizations). Serbian law does not recognize the instrument of trust management.

2.3 Are there any restrictions on land ownership and the buildings constructed on it in your jurisdiction?

Yes, Articles 82-85 of the Law on the Fundamentals of Property Relations establish certain restrictions. Foreign individuals and legal entities conducting activities in Serbia may acquire ownership rights to real estate in Serbia necessary for their activities, provided there is reciprocity.

2.4 Can the right to land and the buildings constructed on it be legally separated?

In Serbia, the principle of "unity of immovable property" is applied, which means that a land plot and everything permanently attached to it constitute a single object of ownership. The principle of unity of real estate is indirectly prescribed in the Serbian legal system through: Article 3 of the Law on Real Estate Transactions, which stipulates that a building cannot be sold without the corresponding right to the land in accordance with the Law on the Foundations of Property Relations (Articles 24-26); and Article 106 of the Law on Planning and Construction, which mandates the establishment of unity of real estate after the right of use has been converted into ownership of the land plot.

2.5 What types of security interests can be associated with real estate? How are they prioritized?

Mortgages and other contractual rights (for example, the contractual right of first refusal, lease) are established. If more than one mortgage is registered on the same property, priority is determined based on the date of the application for mortgage registration, in accordance with the principle of priority established by the Law on the Procedure for Cadastral Registration of Real Estate and Lines.

3 Registration

3.1 Which authority administers the land registry in your jurisdiction?

The Republican Geodetic Administration (RGA) is a specialized organization engaged in professional and state administrative activities related to: state surveys; cadastral registration of real estate; cadastral registration of lines; fundamental geodetic works; address registry; topographic and cartographic activities; real estate valuation; geodetic-cadastral information system; and national infrastructure for geospatial data and geodetic works in the engineering and technical field.

3.2 Is the registration of property rights, transactions, and encumbrances mandatory?

Of course, considering that property rights come into effect only after registration with the RGA. It is certainly in the interest of every individual and legal entity to register their rights with the competent registry. The registration process can be initiated in two ways:

• On their own initiative: courts, notaries, public executors, and other bodies and organizations that issue, confirm, or certify decisions must submit documents for registration to the competent real estate cadastre service.
• At the request of the party: this occurs if the property registration procedure is not initiated on its own initiative (i.e., when the documents are dated prior to the entry into force of the law establishing the obligation for the aforementioned authorities and courts to submit decisions on their own initiative regarding the change of ownership in the RGA).

3.3 What are the formal and documentary requirements for registration?

The application for the registration of rights must be accompanied by:

• a document that serves as the legal basis for registration in the real estate cadastre;
• other documents provided for by law;
• a power of attorney, if the application is submitted by a lawyer;
• confirmation of payment of the fee.

If the document that serves as the legal basis for registration does not prove the continuity of changes in accordance with the entry in the real estate cadastre, documents confirming such continuity must be attached to the application.

3.4 What is the registration process?

Registration initiated on one's own initiative: after submitting the registration application and accompanying documents, the competent cadastre...