Obtain title deed, containing encumbrance information
Agency: Agency for Real Estate Cadastre, Notary
All the information on encumbrances and property are included in the Title Deed. Thus, parties need to obtain only a copy of the title deed in order to check for encumbrances. The Title deed except from the Cadastre Agency, also can be obtained at the notary offices, municipalities and geodetic companies.
Title deed can be obtained from the closest municipality, notary office or in the offices of private geodetic firms.
Time and cost: Less than 1 day (online), MKD 150 (In hardcopy – 180 MKD + 50 for the payment form through the bank or post office. In electronic form – 150 MKD (through the Distribution geoportal of AREC).)
Lawyer drafts the sale-purchase agreement
As of January 1, 2017, the Republic of North Macedonia requires an agreement to be prepared by a lawyer for transfer of a property in which the transaction is valued at more than 10,000 Euros. There are some exceptions (no such requirement when one of the contracting parties is the Republic of North Macedonia, and 2) for transactions where the legal matter (subject of the agreement for transfer of the property) is under 10.000 Euros in MKD and one of the contracting parties is bank, financial institution or insurance company.
Time and cost: 1 day, MKD 10,000
Statute of the Bar Association of the Republic of North Macedonia set the fees in a decision dated January 31, 2017. The fee is determined according to the value of the subject of sale and in the following manner:
- For value of 3.000.000,00 MKD the fee for preparation is 3.900,00 MKD
- For value from 3.000.001,00 MKD to 5.000.000,00 MKD the fee is 5.000,00 MKD
- For value from 5.000.001,00 MKD to 9.000.000,00 the fee is 6.000,00 MKD
- For value from 9.000.001,00 MKD to 20.000.000,00 the fee is 10.000,00 MKD
- For value from 20.000.001,00 MKD to 60.000.000,00 the fee is 15.000,00 MKD
- For value of 60.000.001,00 MKD the fee for preparation is 30.000,00 MKD
Obtain Certificates for current condition, Certificates of bankruptcy and Certificates of liquidation from the Central Registry
Agency: Central Registry
Prior to referring to a public notary for verification and notarization parties are required to obtain three certificates from the Central Registry. This is usually done online. These Certificates are required by the Notary in order to compile the Notary act. Pursuant to Article 47 of the Notary Law the notary public shall determine the identity of the parties (seller and buyer) – legal entities based on a certificate issued by a competent authority (Certificate for current standing). Further, pursuant to Article 44 of the same Law “while compiling a notary act, the notary public must examine whether the parties are capable and authorized for undertaking such activities (transfer of a property)…” (Certificate of bankruptcy and Certificate of liquidation).
Time and cost: Less than 1 day (online), MKD 770 (MKD 256 (Certificate for current conditions) + MKD 257 (Certificate of bankruptcy) + MKD 257 (Certificate of liquidation))
Submit application for assessment of sale property tax and obtain the tax decision
Agency: City of Skopje Municipality
The base of tax on sales of real estate is the market value of the real estate at the moment of the tax liability. According to the Law on Property Taxes (Official Gazette of the Republic of North Macedonia, No. 61, dated September 13th 2004), the tax rates are determined by each Municipality, and the Municipality administration is authorized to determine and collect the property taxes as per the location of the real property. The Mayor should pass and deliver the decision for the amount of property tax within 10 days from the day when the taxpayer submitted the application. The rate of tax on sale of real estate is proportional and equals 2-4% of the determined market value of the property. If the two parties are companies registered for VAT, the seller will pay 18% VAT on the determined purchase price.
Time and cost: 21 days, MKD 300 (MKD 300 (administration fee))
Pay property sales tax and obtain a stamped payment order at the bank
Agency: Commercial bank and Municipality
Seller makes a wire transfer or pays in person at the bank. To confirm the tax payment, the seller obtains stamped payment order from the bank and submits this document to the Municipality. Given that Municipalities cannot verify whether money have reached their account, stamped payment order must be submitted to get Municipality’s seal on the draft sales-purchase agreement.
Time and cost: 1 day, MKD 455,225.62 (2-4% from the market value of the real estate at the moment the obligation ocurred)
Notary solemnizes draft sales-purchase agreement or prepares a Notary act
Agency: Public Notary
The notary prepares and notarizes the sale contract agreement.
The following documents are required by the notary:
- Title Deed from AREC;
- Current condition of the legal entities (where the names and data of the legal representative(s) of the Companies authorized to sign the agreement are stipulated)-obtained by the notary online;
- Decision for sale of the warehouse adopted by the owner(s) of the Company – Seller;
- Decision for buying of the warehouse adopted by the owner(s) of the Company – Buyer;
- Certificates that both Companies are not under bankruptcy and liquidation Procedure;
- Certificate for non-encumbrance for the warehouse. According to the Law on Notary Public, a notary public is obliged to submit these documents to the Cadastre in order to inform the Cadastre about the change in ownership;
- Seller: must produce a certificate showing that the Company has not initiated the bankruptcy Procedure;
- Purchaser: must issue a Decision for buying the warehouse, signed by the Company’s Manager.
Time and cost: 3 days, MKD 20,000
Sale/purchase agreement according to Article 11 of Notary Tariff depends on the property value:
- Up to MKD 100.000 the fee is MKD 800;
- From MKD 100.001 to MKD 200.000 the fee is MKD 1.200;
- From MKD 200.001 to MKD 300.000 the fee is MKD 2.000;
- From MKD 300.001 to MKD 3.000.000 is MKD 2000 plus MKD 100 for each started MKD 10.000 above MKD 300.001, however to a maximum fee of MKD 8.000.
- From 3.000.001 MKD to 5.000.000,00 MKD, the fee is 10.000,00 MKD; -from 5.000.001,00 MKD to 9.000.000,00 MKD, the fee is 12.000,00 MKD;
- From 9.000.001,00 MKD to 20.000.000,00 MKD, the fee is 20.000,00 MKD;
- From 20.000.001,00 MKD to 60.000.000,00 MKD, the fee is 30.000,00 MKD;
- Up to 60.000.000,00 MKD, the fee is 60.000,00 MKD.
Pursuant to the Notary Act of 2017, 50% of the award and the costs prescribed by the Notary Tariff, are paid to the attorney at law as his participation is obligatory.
Registration in the Cadastral Office
Agency: The Agency for Real Estate Cadastar
Parties submit a request for changing the title to the Cadastral Office.
A lawyer or the buyer obtains from the Cadastre a new Title Deed in which the new owner will be registered. Ownership right over real estate is established at the moment of registration of that right in the Public Book at the Cadastre, though in practice documentation would be required to resell or use the property to obtain a loan.
According to the Article 186 from the Law on Real Estate Cadastre (Official Gazette of Republic of North Macedonia 55/2013), the time limit for Real Estate Cadastre to register required application is set at 15 working days. The documentation shall include: the sale contract approved by public notary.
E-lodging is now being introduced in Republic of North Macedonia: the E-Counter application for professional users (available at www.katastar.gov.mk), enables submission of applications for data and changes electronically, using electronic signature. The fee for the service and the administrative tax can be paid by credit card via the virtual POS terminal. In order to use this service, the professional users must sign a contract with the AREC and must have internet access, scanner, digital signature issued by an authorized body, and payment card. With the E-Counter, the citizen via the Notaries can conduct purchase or sale of the property and can quickly record a mortgage, without coming to the AREC front desk in person.
Time and cost: 3 days, MKD 350 (MKD 300 (for change of ownership) + MKD 50 (administrative tax))