In the event that someone decides to sell or rent a POS apartment, the Agency for Legal Market and Real Estate Mediation will inform the bank in which the credit was secured for buying the apartment, and the bank will take steps to initiate compulsory collection.

ZAGREB The Ministry of Physical Planning and Construction confirmed to our list that the changes to the Law on Supported Housing (POS) will put an end to pre-sale or renting of POS apartments. Furthermore, as noted by the Ministry, all new agreements to purchase an apartment will include clauses stating that the apartments cannot be sold or rented before the purchase price debt is paid off. The law is expected to be passed before June. "In order to prevent abuse, or to put an end to pre-sale or renting of favorable apartments from the POS program, the Ministry of Physical Planning and Construction decided to make changes to the law last year. In the first, draft version of the law, the provision is included that future contracts for the sale and purchase of apartments within the POS program must include a ban on renting or selling an apartment until the buyer has paid off the remaining debt with interest on public funds for the period of debt interruption. In the event that someone decides to sell or rent a POS apartment, the Agency for Legal Market and Real Estate Mediation will inform the bank in which the credit was secured for buying the apartment, and the bank will be required to declare the credit fully due and take steps to initiate compulsory collection. In such a case, the buyer will have to pay the difference between the agreed purchase price and the determined market value of the property on the day the contract is concluded. The state would, in such a case, recover all that was invested in the subsidy," states the Ministry's response. Those who have bought an apartment so far will still be able to dispose of it as they wish, but the new development is that all new agreements to purchase an apartment will contain limiting clauses from now on. Although the Ministry calls the pre-sale or renting of POS apartments "abuse", de facto it is not, because the currently valid law does not provide for any restrictions, and buyers cannot be punished. The first POS law was passed, and apartment construction began, over 18 years ago, and at the time, the buyer could sell the apartment at any time, as long as they had paid off the remaining debt at interest on public funds for the period until the debt was interrupted. Six years later, in 2007, a ban was introduced on disposing of the apartment for a period of ten years from the time of purchase, but in 2012, the ban was abolished, deemed unnecessary. The fact is that the ban on disposing of the apartment may be a problem if, for example, spouses divorce, someone of them loses their job, and the family can no longer afford the mortgage, if a relocation to a different city occurs - which is why the ten-year ban was poorly thought out, but some restrictions should still have been put in place. Our newspaper wrote about POS apartment pre-sales in 2015, when the Split-based association Nova Kila, established by "real" POS apartment buyers in Split, drew attention to this issue. source: novilist.hr

About us

Information

Services

About us

Information

Services