Off-Plan Property Claim in Croatia

An off-plan property claim in Croatia arises when a buyer has paid for a flat or a house that is still being built, a stan u izgradnji (flat under construction) or novogradnja (new-build), and the investitor (developer) does not deliver it as agreed. This page covers claims over unfinished or undelivered new-builds: late completion, missing permits, flats that cannot be registered as separate units and a developer's bankruptcy (stečaj). Some older lists and lawyer pages call this service “Unfinished Property Claim”. It is for foreign buyers who bought on plan, often from abroad; an English-speaking lawyer registered in Croatia can take the case.

Where the problems come from

• Delay or no completion: the contract sets the handover date and what follows when it is missed.
• No use permit (uporabna dozvola): a finished building may still lack the permit that allows it to be used and registered.
• No separate title: until the building is divided into units (etažiranje), a flat has no entry of its own in the land register.
• The developer's bank: the land may be mortgaged for the developer's loan, and the buyers' flats with it.
• Bankruptcy: money paid to a developer that becomes insolvent turns into a claim in the bankruptcy proceedings.

How a claim usually goes

The first step is the paperwork: the contract and its annexes, proof of every payment, the land register extract with any predbilježba (a provisional entry of the buyer's right), and the permits. A buyer's advance payments are not automatically secured by a bank guarantee in Croatia, so what protects the buyer is mostly what the contract and the land register say. Depending on the facts, the buyer can demand completion, withdraw from the contract and claim the money back with damages, ask the court to register the ownership, or file a claim in the bankruptcy.

What a lawyer does

A lawyer reads the contract and the registers, writes the formal demand, negotiates with the developer, brings the case to court or files the claim in the bankruptcy, and acts for a buyer abroad under a power of attorney. Before signing for a new-build, see property purchase; wider contract problems are covered under contract disputes and breach of contract.

Questions and answers

The developer is late. What can be done?

The contract decides first: the deadlines, any contractual penalty and the right to withdraw. A lawyer sends a formal demand and, if needed, takes the claim further.

The developer has gone bankrupt. Is the money lost?

Not necessarily, but the buyer becomes one of the creditors. A provisional entry in the land register together with proof of payment puts the buyer in a stronger position; the claim is filed in the bankruptcy within the time the court sets.

Why can't my finished flat be registered?

Usually because the building has no use permit yet or has not been divided into units. Both depend on the developer, and a lawyer can press for them or ask the court.

Will I get my money back?

No outcome can be promised. It depends on the contract, the evidence of payment and what the developer or the bankruptcy estate can pay.