Obtain the court extract certifying that company representatives are authorized to act on behalf of each company
Agency: Municipal Court in Sarajevo (Companies Registry)
Both the seller and the buyer submit the request for obtaining the court extract to the court that keeps the registry of commercial companies. The extract certifies the person authorized to act on behalf of each company. The parties have to provide the set of registration documents, which prove that the person who will sign on behalf of the company is authorized to do it.
Time and cost: 5 days, BAM 50(BAM 5 (each request) + BAM 10 per page (Court Extract, about 4-5 pages each))
Obtain the land registry extract as proof of ownership
Agency: Municipal Court in Sarajevo (Land Registry Office)
The seller requests and obtains the land registry excerpt from a competent court land registry office as proof of ownership and to check the property against encumbrances. In practice, the excerpt must be obtained by the seller before starting the transaction. This information needs to be obtained in hard copy and be sealed to have legal validity.
Time and cost: 1 day, BAM 5
Notarization of the sale-purchase agreement
Agency: Notary
Parties provide the notary with the land registry excerpt (obtained in Procedure 1) as well as with the court excerpt (obtained in Procedure 2). The presence of both parties is necessary at the notary’s office, or verifications of the signatures should be based on a power of notary. The notary needs to obtain the following documents from the parties:
- The land registry excerpt as well as the copy of the cadastre plan proving the ownership of the property;
- The extract from the company’s court registry certifying the person is authorized to act on behalf of the company and to sign the purchase agreement;
- The approval of the founder (i.e. the General Assembly or Supervisory Board if applicable) for selling the property in the case that the value of the property exceeds the amount of 1/3 of the company’s book value.
Time and cost: 1 day, BAM 550 (When the value of the subject of a legal transaction or other official action is over 100,000 BAM, notary is, besides the fee of 350,00 BAM, obliged to charge an additional fee of 50,00 BAM for every started 100.000,00 BAM in the part in which the value of the official action exceeds 100.000,00 BAM, but in the amount not greater than 2.000,00 BAM.)
Submit the request for an evaluation of the property for tax purposes
Agency: Municipal Tax Authority
This Procedure can be done by a lawyer or by the buyer and the seller. The documentation shall include a copy of the sale-purchase agreement (obtained after Procedure 3). Parties file the request for the evaluation of the real estate for the payment of the tax for the transfer of the ownership on real estates at the competent municipal Tax Authority. The deadline for filing the request is 15 days from the verification of signatures on the sale-purchase agreement.
Time and cost: 1 day, no charge
On-site inspection of a property
Agency: Tax Office Commission
Upon the submission of the sale-purchase agreement, the tax office commission performs an on-site inspection of the property and takes notes from the inspection. Based on the notes, the tax office adopts an official decision on tax duty of the buyer.
Time and cost: 21 days, no charge
Payment of the transfer tax at the commercial bank
Agency: Commercial Bank
The transfer tax of 5% is paid by the buyer at a commercial bank in favor of the municipal budget. The tax has to be paid within 30 days from receiving payment instructions from the tax authority.
Time and cost: 1 day, BAM 24,521.32 (5% of property value (transfer tax))
Apply for registration at the Land Registry
Agency: Municipal Court of Sarajevo (Land Registry Office)
Parties submit the registration application and other documents for the transfer of the ownership to the competent court land registry office. The procedure can take less time when the party sends the urgency letter. All data on companies is stored in electronic forms, so the issuing of the court extract requires only printing of the stored data. The land registry forwards this information to the Cadastre.
The documentation shall include (1) purchase agreement, and (2) certificate of the tax payment.
Time and cost: 6 days, BAM 30
