The real property sales contracts and other contracts on acquiring the rights on real property – has to be formalized in written form (by the parties or with a proffesional help of a lawyer) then solemnized by a notary.

Solemnization of a private contract exceeds the simple verification of the contractual parties signature. The notary who is solemnizing the real property sales contract has a duty not only to determine the identity of the parties but also to determine the true will of parties, to analize the content of the contract and its compliance to the law, including the determination that real property has been identified in the contract properly and according to the Cadastre land register data.

Contracts on disposing of the real property of persons who lack legal capability and minors has to be made in the form of the notarial authentic act.

If the notary is solemnizing contract or creating a notarial authentic act procedure includes the following:

1) examination of the content of the contract in order to determine its compliance with binding regulations, public order and good practices;

2) indentification of the parties by valid ID card or passport or by hearing of 2 witnesses, including the identification of the capacity and authorization of the parties to conclude such legal transaction;

3) reading of the contract to the parties by a notary (or in the presence of notary) with the explanation of the content and legal effects of the transaction to the parties together with the information of the known and usual risks of legal transaction in question. The notary also has duty to inform parties of any vague, incomprehensible or ambiguous statements and has to expressly point out the possible legal consequences of such statements. If parties, after they have been informed, still insist in their statements, the notary will allow it and add the warnings provided to the parties in regards to this.

4) explicite statement of the parties that the contract is fully in acordance with their true will and signing of the contract in notary's presence.

The main buyer’s right is his/her right to transfer ownership (by the registration of the buyer in the Cadastre Land register) and to take possession of the real property in accordance with the conditions set down in the contract.

The main seller’s right is the payment of the sale price, also in accordance with the conditions set down in the contract.

Of course, these are the main rights and obligations of the parties and they are not excluding the possibility for parties to agree additional rights and obligations in the contract with the proffesional help of a notary (the most important are the contract clauses which protects the transaction and parties in a way that the transfer of property would only take place after the seller has received the sale price).

Rights such as right of first refusal or preferential rights may exist depending on the real property and rights on it. They could be set out by specific law or they could be established by a private contract .

Some of these rights are rights of first refusal in favor of the co-owner of the property or (in some cases) the neighbor of the property. Also, inquiries should be made with the state and/or municipality to ascertain whether there is a any special right on the property for sale and whether this right is being exercised. (i.e.. agriculture land, protection of monuments and national parks, etc.).

The notary has a duty to inform the parties of the existence of such rights and of the subject and the procedure for the necessary approvals and/or authorizations.

The documents for the implementation of such rights (i.e. consents of the co-owner or neighbor, authorizations, etc.) are collected by the parties .

The buyer becomes the owner of the property at the moment of the registration of its ownership title into the Cadastre land register.

The registration is made at the basis of the request submitted by parties themselves (usually buyer).

That is on contracting parties to agree. In most cases, the payment is made immediately after the agreement was concluded in the form of a bank transfer.

Other modalities such as notarial deposits, escrow accounts, etc. are possible, but in most cases the payment will be done in the form of bank transfer.

In Serbia any sale of real estate property is subject to a special property transfer tax or VAT (Value added tax).

The sale of newly built real estate property is the subject of the VAT by the special VAT rate of 10% of the sale price.

The sale of the existing real estate property is subject to a special property transfer tax of 2.5 % of the sale price. Legally, this tax is burden for the seller who has to report the transaction to the competent tax authority within 30 days from the notarization of the contract. The tax authority will determine the tax amount. The tax is due within 15 days after the tax authority issued a tax order.

That is on contracting parties to agree, meaning that there is no compulsory moment in which the new owner is authorized to take possession of the property.

In most cases, the possesion of the property will take place immediately after the purchase price has been paid to the seller.

The legal effects of a real estate purchase agreement, that is transfer of the property to the buyer, will arise by registration of the buyer as a new owner of the property into the Cadastre land register.

That means that the transfer of ownership is final not at the moment of the signing of the contract but at the moment of the registration of the buyer as a new owner of the property in the Cadastre land register.