THE PROCESS OF BUYING A PROPERTY IN ALBANIA

The buying process in Albania follows this format:

• Once the reservation contract has been signed, which will secure your interest in the property; there is usually a period of 4 weeks in which to carry out checks before the investor signs the main 'preliminary' contract. The preliminary contract is signed by all parties in which they effectively promise to enter into a final contract to buy and sell the property. After all the necessary details are provided, the contract will be drawn up by the developer’s solicitors and will set out timescales, payment terms, prices and the terms and conditions agreed.

• When the preliminary contract is signed the investor will usually pay a deposit of 10% of the price on a second-hand property or a down payment of 30% on a new or “off-plan” property. However it is subject to the particular developer’s requirements with a certain level of flexibility. The remaining monies are then due prior to construction completion and payable in stage payments. The developer is usually flexible when these payments are made so long as the required monies are paid in full before construction completion.

• Once the skeleton of the building has been completed you are able to fund the remaining amount via mortgage. At completion of the roof level the bank will take over the payments.

• The Notary plays a major part in the process of buying and selling real estate. The notary is a public officer who is there to ensure that the transaction goes through in a proper legal manner. Once the property has been finished the final contract/Notary Deed/ is signed transferring the right of ownership to you. At this point it can be put on the public record which will show the official transfer of title to the buyer.

• Once this has occurred, the buyer will transfer the remainder of the funds and obtain the title deeds in his name. At this point the property is legally completed and the buyer becomes the owner! If you are taking a mortgage loan the process usually takes a week or two. For off-plan properties typically banks will finance up to 70% of the asking price allowing the investor to purchase by putting in only 30% of their own money. The loan guarantees will be first the collateral complete by the developer to the bank to secure the process and then the property mortgage.