Obtain tax confirmation letter from the Finance and Property Directorate of the Municipality
Agency: Finance and Property Directorate of the Municipality
The seller requests the confirmation letter from the Municipality to prove that all the taxes for the property have been paid and that the property can be sold. Seller needs to present these documents to the cadastral office to obtain information from them, i.e. the possession list and plan plot.
Time and cost: 1 day, no charge
Obtain copies of the property certificate and lot plan at the Municipal Geodesic and Cadastral Directorate of the Municipality
Agency: Municipal Geodesic and Cadastral Directorate of the Municipality
The seller must submit copies of the property certificate and lot plan to the notary who will prepare the sale agreement. The property certificate needs to be signed and approved by the Director. In order to receive the property certificate, the following documents are required: ID, old certificate, tax confirmation letter and the application form.
Time and cost: 1 day, EUR 9 (EUR 4 for the property certificate and EUR 5 for the land plot plan)
Obtain a preemption right document from the Municipality
Agency: Municipality
The seller or the notary applies for a preemption certificate from the Property Department of the Municipality This preemptive rights are regulated with the Law on Property and other Real Rights (Law No. 03/L-154) CHAPTER IV, Article 44 . This law was promulgated by the Decree No. DL-016-2009, dated July 15, 2009.
Time and cost: 7 days, no charge
Notary prepares sale and purchase agreement and notarizes it
Agency: Notary
Pursuant to Law No. 03/L-10 on Notary, the sale/purchase contract will be drafted by the notary. Due diligence is also conducted and there is an internal database created specifically for notaries that contains information on parcel numbers, law suits, debts, mortgages and whether the property is in possession. Notaries are not required to check on utility bills, but they advise parties to do that. There is a specific provision in the sale agreement and notaries advise their clients to check that bills are paid before signing the contract. It is up to parties to decide whether they want to split bill payment obligation between themselves or reduce the property price by the amount of the outstanding bills or pay bills in full and provide the proof of payment.
The notary fees are defined by the Ministry of Justice, in consultation with the Chamber of Notaries. The Administrative Instruction No. 02/2012 On Provisional Notary Fees sets out provisional notary fees for notarial acts and services in the Republic of Kosovo. According to the Article 5 of the Instruction: “Notary fee rates are determined based on transaction value of the notarial act”.
For notarial acts prepared based on the transaction value and which are not included in other fees, the notary fees shall be calculated as follows:
Transaction value in Euro
For the property with the value of:
- 0,01 EUR to 2.500,00 EUR – fee is 20 EUR
- 2.501,00 EUR to 5.000,00 EUR – fee is 30 EUR
- 5.001,00 EUR to 20.000,00 EUR – fee is 50 EUR
- 20.001,00 EUR to 60.000,00 EUR – fee is 80 EUR
- 60.001,00 EUR to 100.000,00 EUR – fee is 120 EUR
For notarial acts where the transaction value exceeds the amount of 100,000.00 EUR, the fee will increase for 20 EUR for every 20,000.00, but cannot exceed the total fee amount of 1.000 EUR.
Time and cost: 2 days, EUR 220 (For transactions exceeding 100,000 EUR, the fee is 120 EUR, plus an increase of 20 EUR for every 20,000 EUR increase in transaction value. Total fee amount cannot exceed 1,000 EUR.)
Pay Municipal taxes on real estate transaction
Agency: Finance and Property Directorate of the Municipality / any commercial bank
This transfer tax is a flat fee. In the past it was a percentage of the property value, but it is now a fixed value per land plot transferred. After paying at the bank, it is necessary to bring back to the municipality the proof of payment.
The tax sum is determined by the Municipal Regulation on fees, charges and taxes, dated 02.12.2011, (Article 4).
Time and cost: 1 day, EUR 151 (EUR 150 + EUR 1 (bank services))
Register the transfer of property at the Geodesic and Cadastral Directorate of the Municipality
Agency: Municipal Geodesic and Cadastral Directorate of the Municipality
After submitting all documentation, the municipality provides the payment slip to pay the registration fees at a commercial bank. The Municipality must put a notice on the public board for 5 days. If there are no claims, then the process can continue.
In accordance with the Administrative Instruction MESP Nr. 08/2014 the fees on products for registering the immovable property rights from municipal cadastral offices are as follow:
- For transaction amounting to 10,000 EUR – fee is 20 EUR
- For transaction amounting to 10,001 EUR to 30,000 EUR – fee is 30 EUR
- For transaction amounting to 30,001 EUR to 50,000 EUR – fee is 35 EUR
- For transaction amounting to 50,001 EUR to 100,000 EUR – fee is 50 EUR
- For the amount above 100,001 EUR and each exceeding 50,000 EUR – fee is 50 EUR plus 30 EUR for each exceeding value
Time and cost: 20 days, EUR 111 (EUR 110 (Registration fee) + EUR 1 (bank services). For transaction exceeding Eur 100,000, each exceeding Eur 50,000 – Fee is Eur 50 plus Eur 30 for each exceeding value.)
