For many years, Slovenia has been facing challenges in the real estate market, stemming from unregulated legal frameworks, lack of oversight over construction companies, and insufficient protection of buyers. In response to these challenges, the Housing Buyers Protection Act (ZVKSES) was adopted and entered into force on April 24, 2004. This Act represents an important step forward in protecting buyers’ rights and ensuring greater transparency and safety in the real estate market.
The main objective of ZVKSES is to provide legal protection to buyers when purchasing apartments and single-dwelling houses, with a particular focus on safeguarding against potential irregularities or fraud on the part of sellers or investors. The Act seeks to achieve this goal through precise regulation of contracts between buyer and seller, stipulating the obligations of sellers, and introducing mechanisms that offer buyers greater protection in the event of defects or non-fulfillment of obligations.
Key provisions of the Act
- Form and content of the contract
ZVKSES requires that a contract between the buyer and the seller of an apartment or a single-dwelling house include certain mandatory elements. These include a precise description of the property, the purchase price, the delivery deadline, information on the building permit and other documentation, as well as provisions regarding guarantees and other buyer rights. The purpose of these provisions is to ensure that the buyer is fully informed of all important aspects of the property before purchase.
- Warranty for material defects
Under ZVKSES, the seller is liable for material defects that appear within three years after the delivery of the property. If the buyer discovers defects during this period that could not have been detected at the time of handover, they have the right to demand the correction of defects, a reduction in the purchase price, or even withdraw from the contract if the defect is substantial.
- Insurance in case of non-fulfillment of obligations
ZVKSES also introduces the obligation for sellers or investors to provide insurance in case of non-fulfillment of contractual obligations. Before selling, sellers must secure insurance or a bank guarantee that enables buyers to recover the purchase price in the event that the seller fails to meet their obligations. This is a key safety mechanism protecting buyers against losses in the event that the project is not completed or if another serious problem arises.
- Competence of supervisory authorities
The Market Inspectorate is responsible for supervising the implementation of ZVKSES and is authorized to investigate irregularities and take action in cases of violations of the Act. The Inspectorate may impose fines for breaches of the law, which is crucial for ensuring compliance by sellers and investors.
Significance of the Act for buyers
ZVKSES represents an important step in protecting real estate buyers in Slovenia. In the past, buyers were often left to fend for themselves without sufficient legal protection, leading to numerous disputes and financial losses. With the adoption of this Act, the legal security of buyers has significantly improved, as it provides greater transparency, obligations, and accountability of sellers, as well as appropriate mechanisms for dispute resolution.
Challenges and future development
Despite the progress brought by ZVKSES, certain challenges remain in its implementation. The main issues include lengthy dispute resolution procedures and a lack of proactive oversight. It is important for legislators, inspection authorities, and the judiciary to continue working together on improvements and adjustments to the Act to ensure it protects buyers in the real estate market even more effectively.
ZVKSES is an important law that improves the position of buyers in the Slovenian real estate market. With clear rules, mandatory insurance, and effective oversight, the Act has set new standards that contribute to a safer and fairer real estate market. For buyers, this means greater protection of their rights, reduced risks, and a more transparent purchasing process.
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