Once you have entered into a purchase agreement, the closing phase of the property sale process begins. To help you understand what to expect after signing the purchase agreement, we have prepared a timeline overview of the sales process after signing the purchase agreement.
Signing the sales contract
After the parties agree on the sales price and terms, the purchase contract is signed. This is a document that contains the rights and obligations of both parties. The purchase agreement also typically outlines the next steps that follow the signing of the contract, as well as the time frame in which the sale process will be completed.
Payment of the first part of the purchase price
It is usually necessary to pay a certain amount of the purchase price as a deposit upon signing the purchase agreement. The payment term is generally short. However, the earnest money is not a necessary part of the contract. The parties are free to agree that the purchase price is paid in one full amount, in which case there is no earnest money.
Tax assessment announcement
Within 15 days after the conclusion of the sales contract, the seller is obliged to submit to the regional financial office a declaration for the assessment of real estate sales tax and a declaration for the assessment of advance income tax on capital gains from the disposal of real estate, together with the related documentation.
Payment of real estate transfer tax
The Financial Administration of the Republic of Slovenia (FURS) is obliged to assess the real estate transfer tax (DPN) within 30 days at the latest. There is no such deadline for capital gains tax. The reason is that the payment of VAT is necessary for the sale process to be completed successfully.
When the DPN is assessed, the decision is sent to the taxpayer or his representative. After paying the tax, the taxpayer receives an original, tax-certified copy of the sales contract, which is intended for entry in the land register.
Signature verification
The signature on the sales contract must be notarized. The seller, with a tax-certified copy of the sales contract, must appear in person at the notary. The notary establishes the seller’s identity and verifies the seller’s signature on the purchase agreement.
Payment of the purchase price and delivery of the sales contract and handover
Signature verification is usually followed by payment of the remaining purchase price. When the seller receives the full amount, he hands the buyer an original, tax-certified sales contract with a certified signature. With this sales contract, the buyer can be registered in the land register.
The handover of the property remains. Upon handover, the seller hands over the property to the buyer. In practice, this means handing him all the keys to the property. A handover record with a list of counters is also drawn up, which is the basis for transferring the deposit slips to the new owner.
For more information or a consultation, please contact us; Phone: 00386-40-626-131, E-mail: tajnistvo@bazarealestate.com.
