Sales Contract

Sales Contract

The Law Office Marović provides comprehensive legal assistance regarding sales contracts, relying on more than three decades of experience in the fields of obligations and property law. Our team drafts and reviews contracts, conducts legal and factual checks on the subject of purchase, negotiates on your behalf, and represents you in proceedings before the court or a notary public.

What is a Sales Contract?

A sales contract is a bilateral binding agreement that regulates the transfer of ownership rights in exchange for the payment of a price. The seller is obliged to transfer the item or right to the buyer and enable them to acquire ownership, while the buyer is obliged to pay the agreed price in money.

The subject of the contract can be any item or right that is in commerce:

  • Real Estate – apartments, houses, commercial properties, garages, land;
  • Movable Property – vehicles, machines, equipment, furniture, white goods, valuables, stock inventory;
  • Rights – receivables, intellectual property rights, shares in a company;
  • Future Goods – such as apartments under construction or agricultural crops.

When the subject of the contract is real estate, the contract must be in writing and notarized, and ownership is acquired only upon registration in the property cadastre. For movable property, the law allows a simpler form, but for legal certainty, it is advisable to create a written contract. The subject of the sale cannot be items or rights excluded from commerce in accordance with the law, such as certain cultural goods or natural resources.

Most Common Checks in Practice

  • Buying an Apartment or House – checking the status of registration in the property cadastre, existence of mortgages, annotations, and disputes.
  • Buying Land – especially important are checks of urban planning conditions, pre-emption rights, and encumbrances.
  • Buying a Car – the contract governs liability for hidden defects and protects both parties from future claims.
  • Business Transactions – for larger purchases of equipment or inventory, the contract includes guarantees, delivery deadlines, and payment terms.

When to Contact a Lawyer

Legal assistance is particularly recommended when:

  • You are buying real estate or land
  • You are investing significant funds in movable property
  • You want the contract to include clear guarantees, contractual penalties, and termination conditions
  • You plan to secure the price or transfer of ownership through a deposit with a notary public or bank-secured funds

Frequently Asked Questions (FAQ)

Can I write the sales contract myself?

 It is possible, but without professional review, important clauses may be overlooked. It is advisable to have the contract drafted or at least reviewed by a lawyer.

What can be the subject of a sales contract?

Real estate, movable property, specific rights, and items that will be created in the future, provided they are in commerce in accordance with the law.

Who checks if the seller is the owner of the apartment or land?

The lawyer reviews the property cadastre to verify the legal status of the real estate, including encumbrances, annotations, and restrictions on trade.

Does the contract need to be notarized?

For real estate, notarization is mandatory. For movable property, notarization is not always required, but it is for vehicles and vessels. It is recommended to have a written and notarized form, even if the law does not explicitly require it.

How much does notarization of a contract cost?

Costs depend on the value of the subject of the contract and are calculated according to the notarial fee schedule. For an exact calculation, you should consult a notary public.

What if the seller is not registered as the owner?

A person not registered as the owner cannot transfer ownership to the buyer. Such a purchase is high-risk and can lead to disputes. The contract should be concluded exclusively with a registered owner or with adequate guarantees and conditions.

How is the sales price paid?

Payment is regulated by the contract. For full security, the price can be deposited with a notary public or an escrow account at a bank.

How Escrow or Price Deposit Works

The buyer deposits the price into a special account of the notary public or a bank. The funds are released to the seller once the contractual conditions are met, such as after the contract is notarized and the ownership rights are registered in the property cadastre. In this way, the buyer is protected from losing money without acquiring ownership, and the seller ensures that the funds will be paid immediately after fulfilling the conditions.

What is a Clause Intabulandi?

A Clause Intabulandi is a contractual provision in which the seller explicitly agrees to allow the buyer to be registered as the owner in the property cadastre. Without this clause, the buyer cannot have their ownership rights registered, even if the contract is notarized.

Can the Buyer Request Contract Termination Due to Hidden Defects?

Yes, in cases and within the deadlines prescribed by law. The seller is liable for material defects that existed at the time of delivery, even if they were not aware of them. The buyer can request contract termination and return of the price, a price reduction, repair, replacement, or compensation for damages, provided that they notify the seller in a timely manner as required by law.

Can the Contract Be Terminated, and Under What Conditions?

Yes, the contract can be terminated by mutual agreement, due to the non-fulfillment of the obligations by the other party, or for reasons provided by law, all in accordance with the contractual clauses and the law.

What If the Buyer Fails to Pay the Price on Time?

The seller can request enforcement, contractual penalties if agreed upon, contract termination, and compensation for damages, depending on the contractual provisions and the law.

Who Pays the Tax on Transfer of Absolute Rights?

By default, the buyer pays the tax, unless the contract states otherwise. For calculations and payments, the Tax Administration should be consulted.

Who Bears the Costs of Notarization and Registration in the Cadastre?

Typically, the buyer, unless otherwise stipulated in the contract.

When Does the Buyer Acquire Ownership of Real Estate?

The buyer acquires ownership rights upon registration in the property cadastre, not by signing and notarizing the contract.

What If the Buyer or Seller Changes Their Mind After the Contract Is Notarized?

The contract produces legal effects from the moment it is notarized. A unilateral withdrawal without a legal basis carries responsibility under the general rules of contract law and the agreement.

What is a Down Payment and How Is It Different from an Advance?

A down payment is a security measure for contract performance and must be explicitly stated in the contract (if not, it is considered an advance). The down payment remains with the other party if the contract is not fulfilled due to the fault of the transferor, and if the contract is not fulfilled due to the fault of the recipient, they must return twice the amount of the down payment.

An advance is part of the price paid at the time of concluding the contract, usually as partial fulfillment of the contractual obligation, and it does not serve as a security measure for the obligation. If the party that gave the advance withdraws from the contract, the other party keeps it, and if the recipient of the advance withdraws from the contractual obligation, they return it in the original amount.

Does a Sales Contract for Movable Property Have to Be Notarized?

Not always. The law explicitly requires notarization for vehicles and vessels. For higher-value items, notarization is recommended for legal certainty and proof.

What If There Is a Mortgage or Legal Dispute on the Property?

The contract can still be concluded, but the buyer assumes the risk. In practice, before payment and transfer of ownership, the deletion of the mortgage or resolution of the legal dispute is usually required, along with contractual protective clauses.

How is Payment in Installments or via Credit Regulated?

The contract specifies the deadlines and payment schedule, interest rates, and security measures. For bank purchases, a credit agreement and corresponding security measures are also concluded.

Can Forced Heirs Challenge a Sales Contract?

A concluded and executed contract cannot be challenged solely due to the expectations of heirs. Challenges are possible only in exceptional circumstances, such as when the contract is fictitious or legally null.

Note: The content of this text is for informational purposes only and does not constitute legal advice. Although we strive to ensure that the information is accurate and up to date, every situation has its specificities and requires an individual legal assessment. For precise and reliable advice regarding your specific case, it is recommended to consult a lawyer.

Last updated: 16 October 2025

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Novi Sad

Advokat Željko Marović
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advzmarovic@law-marovic.com
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Beograd

Advokat Marko Marović
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