What is notarization of a lease agreement?

Notarization is the certification of a contract by a public notary, during which the notary verifies the identity of the parties and their intent and informs them of the legal consequences of the obligations they undertake.

How do the new rules affect apartment owners?

They enable owners to directly enforce eviction or collection of claims without a prior lengthy litigation procedure, thereby strengthening their legal protection.

Will the new rules apply to existing lease agreements?

The notarization requirement applies only to new long-term lease agreements, and the final scope of application will be known after the public consultation and legislative procedure.

Croatia

Government Introduces Mandatory Notarization of Long-Term Lease Agreements

Q: Who will bear the costs of notarization?

The question of costs has not yet been defined and should be clarified during public consultation and the adoption of the final law.

H.D. · Prije 2 dana | 2 min

The draft new Residential Tenancy Act, replacing the 1996 regulation, enters public consultation, with the key novelty being the notarization of contracts by a public notary.

Summary

Minister Branko Bačić presented the draft new Residential Tenancy Act introducing mandatory notarization for long-term lease agreements.
Notarization enables owners to directly enforce eviction or debt collection without lengthy court proceedings.
The new law replaces the 1996 regulation, and the proposal is heading for public consultation soon.

Minister of Physical Planning, Construction and State Property Branko Bačić presented the draft new Residential Tenancy Act on Thursday. As HRT reports, one of the most significant novelties is the mandatory notarization of all future long-term lease agreements.

The current law, dating back to 1996, is becoming history, and the new package of regulations will be sent to public consultation in the coming days. According to the minister, every new contract will have to be drafted as a notarial deed or certified, i.e., notarized by a public notary.

Faster Collection and Eviction Without Court

Notarization entails the notary public verifying the identity and intent of the parties and informing them of the legal consequences of the obligations they undertake. However, as Stijena.info points out, the main advantage for landlords is the possibility of direct enforcement for eviction or collection of claims, without a lengthy litigation procedure.

"This enables enforcement without a prior lengthy litigation process for eviction or collection. With the provisions of the law, we make the long-term lease relationship between landlord and tenant legally and contractually stronger. And notarization itself makes it easier for the apartment owner to settle the relationship if circumstances arise that allow for contract termination due to eviction or collection of unpaid receivables," said Minister Bačić for HRT.

Tenants Should Be Cautious

Although the new rules strengthen the position of owners, they do not guarantee an automatic victory in a dispute. The contract will have to precisely define the rights and obligations, payment deadlines, and termination conditions. Tenants are therefore advised to carefully review all clauses before signing, especially those concerning debts, notice periods, and the handover of the apartment.

The notarization requirement applies to new long-term lease agreements for residential premises. The final scope of application, as well as the question of who will bear the costs of notarization, should be known after the public consultation and the legislative process. Citizens planning to rent out or rent an apartment on a long-term basis are invited to follow further steps, as the new regulation will directly change the current practice in which contracts were often concluded in simple written form.