Comparative real estate guide

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1 Legal basis

1.1 What legislation governs real estate in your jurisdiction?

• Real Estate Transactions Act;
• Law on Land Management;
• Forest law;
• Law on the Fundamentals of Property Relations;
• Law on Obligations (with accompanying rules);
• Law on residential premises and building maintenance;
• Planning and Building Act;
• Mining and Exploration Law;
• Public Property Law;
• Law on confiscation;
• Mortgage law;
• Law on the procedure for cadastral registration of real estate and boundaries.

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 own: certain goods of general use and land 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 status for real estate that is state-owned (land plots, agricultural land, water bodies, forests, and forest lands, etc.), such as: natural resources; goods of general interest; and goods of general use.

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

Goods of public interest: These are goods owned by the state and defined by law as goods of public interest (for example, agricultural land, forests and forest areas, water bodies, water facilities, protected natural sites, cultural values), and therefore they are subject to special protective measures.

Public goods: These are goods owned by the state and are inherently intended for use by everyone, as defined by law (for example, state roads, state railways, bridges and tunnels on state roads, railways, streets, squares, urban parks, border crossings). Rights provided by special laws (such as concessions, leases) can be acquired for public goods.

2 Property

2.1 What types of property rights exist in your jurisdiction?

According to Serbian legislation, the following types of property rights are recognized: ownership (freehold), joint ownership, and common ownership; the right to a servitude; mortgage; and the right to possession and use.

2.2 What ownership structures are typically used in your jurisdiction?

Individuals and legal entities classified as such under applicable law may 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 impose certain restrictions. Foreign individuals and legal entities conducting activities in Serbia have the right to own real estate in Serbia that is necessary for their operations, provided there is reciprocity. The government authority responsible for trade matters will issue a conclusion on whether a foreign individual or legal entity needs ownership of the property acquired under a contract to carry out their activities.

2.4 Can ownership of 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 property rights. 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 it is impossible to sell a building without the corresponding property rights to the land plot in accordance with the Law on the Fundamentals 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 is transformed into property rights on the land plot.

2.5 What security measures can be applied to real estate? How are they prioritized for resolution?

Pledge and other obligations (for example, contractual right of first refusal, lease). If multiple mortgages are registered on the same property, priority is determined based on the date of the mortgage registration application in accordance with the principle of priority prescribed by the Law on the Procedure for Cadastral Registration of Real Estate and Boundaries.

3 Registration

3.1 Who 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; real estate cadastre; line cadastre; basic geodetic works; address registry; topographic and cartographic activities; property valuation; geodetic-cadastral information system; and national infrastructure for geospatial data and geodetic works in engineering and technical fields.

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:

• In the course of their duties: 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 authority.
• At the request of the party: This occurs if the property registration procedure is not initiated by the service (i.e., if the documentation is dated prior to the enactment of the law establishing the obligation for the aforementioned authorities and courts to submit decisions regarding the property owner to the RGA).

3.3 What are the requirements for the form and documentation 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 required by law; a power of attorney if the application is submitted by a representative of a lawyer; and proof of payment of the fee. If the document that serves as the legal basis for registration does not prove the continuity of changes 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 by the service: After submitting the registration application and the accompanying documents, the competent cadastre created by the RGA has a formal period of 5 working days to process the application and make a decision. Registration initiated by a party: After submitting the registration application and the accompanying documents, the competent cadastre...