Due Diligence & Documentation in Albania

AN OVERVIEW OF THE PURCHASE PROCESS IN ALBANIA Due Diligence & Documentation in Albania

LPA LEGAL 2019


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Due Diligence & Documentation In Albania Buying a property in Albania isn’t generally more complicated than buying a property, in your home country, but it is important to understand that the system and process can be quite different and not always the most straightforward.

Although the objective is the same and the process may be similar (searches, contracts, get a new title, register the property) local

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customs and legislation may be quite different and of course, language barriers may present challenges. Furthermore, terminology which may appear similar in English can have very different meanings in Albanian.

Click on each section to learn more about the different phases of the purchasing process in Albania. 

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Before the execution of the and undoubtedly before the execution of the Final Deed it’s advisable that the buyer checks with his/her personal attorney a substantial number of documents related to the property that is being purchased.

The amount and complexity of such documentation will depend on several factors and the type of real estate that is being purchased. Said documentation is, in most cases, difficult to obtain – as various documents are issued by different administrative offices and agencies – and difficult to be interpreted without the technical assistance of an attorney.

Generally, documentation to be reviewed by the purchasing party is:

1. The Property Deed

5. Certificate of Indemnity

This document confirms the ownership of the property and the seller’s title and includes any limitations, restrictions, easements, mortgages etc. negatively affecting the property.

Particular attention should be paid when the purchaser buys a property that the seller received by inheritance or gift.

This document regularizes any construction works or renovation works performed on the property without the required administrative permits, authorizations and permits.

2. Certificate of Urban Destination This document must be attached to any deeds transferring property rights on non-built lands. This document shows the buyer the legal destination of the specific parcel of land that is being purchased according to the Urban Master Plan. This certificate must be obtained by the seller from the Albanian municipality where the land is located 3. Authorization for Division into Lots According to the Albanian law it is invalid any purchase of parcel of land when the purchase is not accompanied by specific authorization for division into lots.

4. Town-Planning Conformity it is necessary to make express reference on the contract to the essential terms and conditions of the authorization (i.e. construction/ building license).

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is advisable to conduct a proper search on the cadastral registries of the property and its current and previous owners as well as its compliance to cadastral laws and regulations.

This document is issued by the municipality where the property is located and certifies the presence of safety, health and energetic efficiency conditions of the property.

Furthermore, it is highly advisable to obtain the property cadastral map and compare it with the actual structure of the property to make sure there are no discrepancies. In case of nonconformity, a declaration of variation will need to be filed to obtain the regularization of the status of the property.

7. Preemptive Rights

9. Condominium Regulations

Albanian properties might be subject to the preemptive rights of Developer’s subcontractors or Land owners swapping the terrain for building surface. Therefore, the owner of this type of properties it is advisable to provide sufficient documents to legally assure the buyer in advance that the property is free of any preemptive right to other individuals.

Each condominium complex has its own internal regulation that regulates the use and the benefits of the common parts of the building as well as the rights and duties of the residents.

6. Certificate of Habitability

8. Cadastral Documentation The Albanian “property registration office ” is the local office which holds documentation regarding all properties located under its jurisdiction. Specifically, this office issues certificates of ownership and documentation regarding third parties’ rights on the property.

Prior to the execution of any deed of purchase of Albania property it

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10. Administrative Documentation All buildings, for safety purposes, need to be accompanied by a building file. In addition, properties built after 1990 need to be accompanied by conformity certificates.

11. Environmental Certifications (commercial buildings) The property needs to be in compliance with Albanian environmental laws and regulations issued for public safety.

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