Buying a property is more than just signing a contract

Purchasing an apartment, house, or plot of land is one of the most significant financial decisions in life. The excitement of a new property often overshadows important legal issues that can later lead to high costs or even lengthy court proceedings.

In our legal practice, we encounter the same mistakes time and again during property purchases. The good news is that with proper legal due diligence, they can almost always be prevented.

We present the ten most common mistakes that every buyer should watch out for.

1. Unverified land registry status

It is essential to check the land registry before signing any contract.

The land registry shows:

• who the actual owner is,
• whether the property is encumbered by a mortgage,
• whether there are any easements,
• whether any prohibitions on alienation or encumbrance are registered.

A buyer should not rely solely on information provided by the seller or a real estate agency.

2. Signing a contract without legal review

The purchase agreement defines your rights and obligations.

Even a single inappropriate clause can lead to significant financial consequences.

Before signing, it is recommended to check:

• the purchase price,
• payment terms,
• property handover deadline,
• seller's liability,
• potential contractual penalties,
• conditions for contract termination.

3. Overlooked easements and other encumbrances

A property may be subject to various third-party rights.

The most common are:

• right of way,
• personal easement,
• life interest,
• mortgage,
• building right.

Such encumbrances can significantly affect the use or value of the property.

4. Unverified legality of the building

With older buildings, discrepancies between the actual state and official records are common.

Before purchasing, it is recommended to check:

• building permit,
• occupancy permit,
• compliance with the land registry,
• actual floor area of the building.

5. Ignoring spatial constraints

Not all land is zoned for the same purpose.

Before purchasing, you must verify:

• the land use designation,
• spatial planning acts,
• building requirements,
• potential restrictions due to protected areas or cultural heritage.

This is especially important when buying land for construction.

6. Underestimating total purchase costs

The purchase price is not the only cost.

In addition to it, you must account for:

• real estate transfer tax or VAT,
• notary fees,
• court fees,
• land registry entry fees,
• translation costs,
• legal representation fees.

It is recommended to prepare a complete financial plan before signing the contract.

7. Inappropriate payment method

The payment of the purchase price must be secure for both the buyer and the seller.

In many cases, it is advisable to use an escrow account or another secure payment method that minimizes risk for both parties.

8. Delays in legal procedures

After signing the contract, several procedures must be carried out in a timely manner.

These include:

• filing a land registry application,
• paying tax obligations,
• fulfilling contractual conditions.

Failure to meet deadlines can lead to delays or additional costs.

9. Relying solely on the seller or real estate agency

The seller and the real estate agency have their own roles in the transaction, but they do not necessarily represent the buyer's interests.

An independent legal review allows for the timely identification of potential risks and ensures a secure purchase process.

10. Seeking legal advice only after signing the contract

The most common mistake is for the buyer to seek legal assistance only after the contract has already been signed.

At that point, the options for correcting errors are significantly reduced.

A legal review before signing the contract is therefore one of the best investments in a secure property purchase.

Conclusion

Buying a property is not just a business decision, but also a significant legal one.

With a timely legal review, verification of documentation, and expert advice, you can prevent many risks and ensure that your purchase is secure and free of unpleasant surprises.

If you are considering buying a property in Slovenia, it is recommended that you consult with a real estate law expert before signing any contract.

Frequently Asked Questions

Is a review of the purchase agreement really necessary?

Yes. The contract defines your rights and obligations, so a legal review is recommended for every purchase.

What should I check before buying a property?

Primarily the land registry status, any potential encumbrances, the legality of the building, the land's designated use, and the content of the purchase agreement.

Can a lawyer handle a property purchase based on a power of attorney?

Yes. In many cases, a significant part of the process can be completed based on a valid power of attorney.

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