A contract for the purchase of a flat, house or other real estate in Serbia is concluded before a notary public, as a notarially certified (solemnised) deed. The rules are the same for Serbian and foreign buyers. This page explains the preliminary contract, earnest money, the contents of the contract and registration.
Form of the contract
The contract is certified (solemnised) by the notary public in whose area the property is located. Before certification, the notary checks the identity of the parties, reads the contract to them in person and explains its content and legal consequences. A contract not concluded in that form has no legal effect. If a party does not understand Serbian, the whole contract is translated with the help of a translator or interpreter, and the deed states that its content was translated.
Preliminary contract
In a preliminary contract the parties undertake to conclude the main contract later. It is binding if it contains the essential elements of the main contract, above all the property and the price, and it must have the same form as the main contract. If one party refuses to conclude the main contract, the other can ask the court to order it to do so. This claim must be filed within six months of the deadline set for concluding the main contract.
Earnest money (kapara)
Earnest money is an amount paid when the contract is concluded as a sign that it has been concluded. When the contract is performed, the earnest money is counted towards the price or returned.
- If the buyer who paid the earnest money fails to perform the contract, the seller may choose to demand performance if still possible, to claim damages, or to keep the earnest money.
- If the seller who received the earnest money fails to perform the contract, the buyer may demand performance, claim damages and the return of the earnest money, or claim double the earnest money.
- At a party's request, the court may reduce excessive earnest money.
Earnest money is not the same as an advance payment or a forfeit for withdrawal, so the contract should state clearly what is being paid and with what effect.
What the contract should contain
- exact cadastre details of the property: cadastral plot, address, area, number of the individual unit
- the price, deadlines and method of payment
- the seller's consent to registration of the buyer's ownership
- the deadline and manner of handing over the property
- the seller's statement on encumbrances and liability for legal and physical defects
- who pays the property transfer tax and other costs
- the consequences of delay and the conditions for termination
Payment
The price is usually paid through a bank. The contract can provide that part of the price is paid only after the buyer is registered or after encumbrances are removed, so that both parties are protected. A foreign buyer should expect the bank to check the source of the funds.
Registration in the cadastre
The notary sends the contract to the cadastre electronically within 24 hours of certification, and the cadastre decides on registration within five working days. The buyer becomes the owner upon registration in the cadastre.
Common questions
Note: This text is general information and is not legal advice for a specific case. It reflects the regulations at the time of the page's last update (October 2026). Assessing a particular situation requires reviewing the documents and circumstances of the case.
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Contact
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