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Real estate attorney Bosnia and Herzgovina – professional legal support in real estate transactions « Area of Work of the Law Firm

Real estate transactions (purchase, sale, exchange, etc.) are among the most important financial transactions that an average citizen does in their life. The real estate market in Bosnia and Herzegovina is very active – according to official data, 22,980 purchase and sale contracts were concluded in the Federation of Bosnia and Herzegovina alone last year, with a total value of around 1.7 billion Bosnian marks (BAM). Most transactions are made in larger urban areas: Sarajevo leads in terms of turnover (especially the municipalities of Centar, Ilidža, Novo Sarajevo and Novi Grad), and a significant number of purchases are also recorded in Tuzla and Mostar. Similarly, in the other entity of Bosnia and Herzegovina, Republika Srpska, the highest turnover is achieved in Banja Luka, with high turnover also in cities such as Bijeljina, Doboj and Trebinje. These indicators illustrate the constant growth of the real estate market – construction is almost continuous thanks to high demand. In such circumstances, a real estate lawyer plays a key role in ensuring that every legal aspect of those deals is correct and that a client's interests are protected.

Why hire a real estate attorney?

The transfers of real estate in Bosnia and Herzegovina imply a series of legal procedures and checks. Although the law requires that real estate contracts be concluded in writing and certified by an attorney or notary, the role of a lawyer/attorney is indispensable in providing comprehensive legal protection to a client. A notary public is a neutral public servant, but it is a lawyer/attorney who advises and represents exclusively the interests of their client throughout the entire process. Some of the advantages of hiring a real estate attorney are:

• Legal documentation check: A lawyer thoroughly checks the ownership of a property and the land registry status before sale or purchase. This means looking into the Land Registry to determine the legal status – who the real owner is, whether there are any encumbrances such as mortgages, notice of pending action, litigations or other restrictions on the property. This check of the title deed (ownership paper) and documentation is essential so that you know exactly what you are buying and whether a seller has the right to dispose of the property. (For example, attorneys specializing in property law routinely conduct ownership and encumbrance checks when buying/selling, so that a client is sure of the legal status of a property.)
• Drafting and certification of the purchase (and sale) agreement: A quality-drafted real estate purchase agreement protects your rights and money. A real estate lawyer prepares a contract in accordance with the law and your agreement, foresees all important clauses (such as the payment deadline, transfer of ownership, liability for material defects, penalties for delay, etc.) and adapts it to the specific case. After drafting, the attorney can organize notarization of the contractor's signature (because the newly certified contract has full legal force for the registration of ownership rights. In this way, it is ensured that the contract/agreement is not just a formality, but that it really protects the interests of a buyer or seller (as appropriate).
• Registration of ownership rights: After signing the contract, it is necessary to register the new owner in the land registry. A lawyer can submit a request on your behalf for registration (intabulation) of ownership rights over real estate in the competent land registry office. This ensures that the change of ownership is formally recorded in public registers, which is a requirement for you to be recognized as the legal owner of the property.
• Property-legal disputes and lawsuits: If there is a dispute related to real estate – whether it is about establishing or contesting ownership rights, interference with possession, property-legal aspects of divorce (property division), and even fraud in sales – a real estate attorney represents a client before courts. Filing a lawsuit to protect real estate rights or responding to another party's lawsuit requires expert knowledge of substantive (material) and procedural law. An experienced attorney shall gather evidence, prepare the necessary filings, and represent you at hearings to assert or defend your right to ownership. (In practice, lawyers often lead property disputes for the division of real estate between co-owners, annulment of contracts/agreements due to defects of will, compensation for damages due to hidden defects in purchased real estate, etc.)
• Regulating co-ownership and condominium (apportioning (dividing) condominium units): When a property is owned by multiple people (e.g. spouses or heirs) or when it is a building with multiple apartments, a lawyer can help regulate co-ownership relationships. This may include drafting an agreement on the division of the property (physical or civil division) or initiating a condominium process. Condominium is the process of dividing a single property (e.g. a residential building) into multiple independent condominium units (apartments or business premises), with the definition of separate and common areas. A real estate attorney coordinates the preparation of the necessary documentation (condominium study (floor study) through a licensed surveyor) and submits a proposal for the registration of condominium ownership in the book of deposited contracts (register of deeds) or the land registries, so that each apartment receives a separate ownership list. A lawyer can also draft a co-ownership agreement that regulates the management of the common property and the mutual rights of the co-owners.
• Probate proceedings related to real estate: After someone's death, real estate enters the deceased’s estate (inheritance mass) and is distributed to the heirs. A lawyer can represent a party in probate proceedings before a court, especially if there are disputes between heirs regarding the division of real estate or if it is necessary to challenge/defend the validity of a will concerning real estate. Professional management of these procedures is important so that each heir can achieve his or her share, and the real estate is properly registered to the new owners after the procedure is completed.
• Advice on / Consultation when purchasing a new building unit from an investor: Buying an apartment or house under construction (new construction) carries certain risks and specificities. A lawyer / attorney-at-law provides advice when negotiating and concluding a preliminary contract with an investor, checks whether the investor has the correct documentation (building permit, right to build on the land, use permit (occupancy permit) after construction, etc.), as well as whether the project is registered in the Book of Deposited Contracts. It is important to legally ensure that the advances paid will be protected and that upon completion of construction, the buyer will be able to transfer ownership without encumbrance. The lawyer reviews the contract clauses that investors offer to buyers, and can propose changes to better protect the client (e.g., guarantees for completion of work on time, penalties if construction is delayed, securing payments through an escrow account, and the alike). In this way, the buyer is protected from potential problems such as double-sold apartments, failure to meet construction standards, or complications in registering ownership.
• Representation of foreign nationals in the purchase of real estates in Bosnia and Herzegovina: Foreign nationals can purchase real estates in Bosnia and Herzegovina, but under certain conditions. A lawyer / attorney-at-law specializing in real estate and private international law introduces a foreign client to the legal framework: reciprocity is the key principle – foreigners can acquire ownership of real estates if citizens of Bosnia and Herzegovina can acquire ownership in the foreigner's country of origin, under similar conditions. If reciprocal relations do not exist, the lawyer will offer alternative solutions, such as establishing a company in Bosnia and Herzegovina in the name of a foreigner, through which a real estate is then purchased (because the company, as a domestic legal entity (legal person), can acquire real estate without restrictions). In addition, foreign buyers often need special approvals – e.g. obtaining approval from the Ministry of Justice to register the foreigner's ownership in the land registries in Republika Srpska. A real estate lawyer provides full support to the foreigner: from obtaining an ID number and Unique Identity Number (JMB) for record purposes, through the preparation of bilingual contracts, to representation before a notary and cadastre, so that the client from abroad can safely invest in Bosnia and Herzegovina. We wrote much more about the right of foreigners to buy real estate in Bosnia and Herzegovina in this article, so you can read in detail: The right of a foreigner to buy real estate in Bosnia and Herzegovina.
• Preparation of power-of-attorney and representation without presence of a client: Many clients cannot personally attend every step of a purchase and sale (e.g. they live abroad or are busy). An attorney then prepares a power-of-attorney by which a client authorizes him/her to perform certain legal tasks related to real estate on his/her behalf. This may include the authority to sign a purchase and sale agreement, submit an application for registration, collect an extract from the land registry, and even transfer or receive the purchase and sale price through an escrow account. Power of attorney must be certified (in Bosnia and Herzegovina or in a foreign country with an Apostille/legalization), and a lawyer can then represent a client before all competent authorities. In this way, the client saves time and can realize real estate transactions "remotely" with the certainty that a professional represents their interests.

As it can be seen, the spectrum of legal services in the field of real estate is broad. Each of the above procedures has its own legal formalities – from checking papers to drawing up contracts / agreements to court proceedings – so hiring an experienced real estate lawyer ensures that no detail is left to chance. Below we provide an overview of the state of the real estate market in Bosnia and Herzegovina, some practical advice from a lawyer's perspective, and a brief analysis of the costs of legal services related to real estate.

Real estate market in Bosnia and Herzegovina: Where is the highest turnover?

Bosnia and Herzegovina has a diverse real estate market, ranging from very active urban areas to rural areas with less transactions. Statistics show that the largest real estate turnover is achieved in the largest cities. In the Federation of Bosnia and Herzegovina, this is primarily Sarajevo – specifically, the municipalities of Novo Sarajevo, Centar and Novi Grad, leading in the number of apartments sold . Immediately after Sarajevo, as regional centers, Mostar and Tuzla follow, which also record a high volume of purchases and sales. This trend is anticipated given the economic activity and population concentration in these areas.

In Republika Srpska, a similar situation exists – Banja Luka, as the largest city, has the most vibrant real estate market. In the first half of last year, 2,935 real estate properties worth 155 million BAM were sold in Banja Luka, which is by far the highest in the RS. This is followed by Bijeljina (63 million KM worth of properties sold in the same period), then Doboj (53 million) and Trebinje (37 million). These data confirm that Sarajevo and Banja Luka, as administrative and economic centers, have the highest real estate turnover, while significant turnover also exists in other regional centers such as Tuzla, Mostar, Bijeljina, Zenica, etc.

It is important to note that high market activity often means more legal challenges. In attractive environments, properties move faster, prices rise, and investors often launch new projects. Buyers sometimes make decisions quickly, which makes legal due diligence (legal check) of the property and contracts even more important – in a dynamic market, there is a greater chance of, for example, double sales, incomplete documentation, or disputes over ownership. Therefore, in cities such as Sarajevo or Tuzla, having a reliable real estate lawyer who knows the local situation well is an additional security.

Advice on buying real estate – from a lawyer's perspective

Buying or selling real estate is a complex undertaking, but with legal advice, it can be done safely and stress-free . Below are some tips that every real estate attorney would give to their clients before entering into a transaction:

• Check the title (ownership) and encumbrances in advance: Don't just take the seller's word for it – before signing any pre-contract or putting down a deposit, check the real estate land registry extract. The certificate of ownership (land-registry extract) will show whether the seller is the owner at all, whether there are mortgages, notes of dispute, easements or other encumbrances. If there are co-owners, they must also agree to the sale. Also check the cadastral extract and whether the property has the necessary permits (for the facility). These checks can be done quickly and efficiently by your lawyer. Never pay large amounts or sign a contract / agreement before you are 100% sure of the legal status of the property.
• Don't rush into signing – ensure a good contract: A real estate purchase and sale contract or agreement defines all the essential elements of the deal and therefore must be precise. If a preliminary contract (pre-contract / pre-agreement) is being made, insist that the down payment gets listed, the deadline for concluding the main contract, what if one party gives up (is the down payment lost or is it returned double), and the like. The main contract should contain precise information on the property (according to the land registry and cadastre), price and currency, payment deadline and method, deadline for handing over possession, description of the property's condition, and clauses on any potential defects and warranties. The best real estate lawyer will recognize potential problems in advance and insert appropriate provisions that protect the client – whether you are the buyer or the seller. Therefore, read every contract (even the "template" one at the notary) carefully and consult a lawyer before signing.
• Count on additional costs: In addition to the purchase price, buying real estate also carries certain additional / side costs. These include real estate transfer tax (5% of the value in the Federation of Bosnia and Herzegovina, except for new construction, the first transaction that is exempt; in the RS, 3%, if it is not the first transaction), notary fees, the cost of documentation certification and registration (court fees), possibly real estate agency costs, and of course attorney’s services. It is a good idea to find out in advance about the approximate amount of all these costs. A lawyer can give you an estimate – for example, notary fees are calculated according to the Notary Tariff, attorney fees according to the Attorney Tariff, tax based on the value of the real estate, etc. This way you will avoid unpleasant surprises and plan your budget properly.
• Insure yourself against risks in new construction: If you are buying a property under construction (directly from an investor), pay special attention to the reputation of the investor and the legal certainty of the project. Check whether the investor has a building permit and whether it is registered as the owner of the land or has the right to build. Ask to see proof that the building / property has been registered in the book of deposited contracts (registered contracts) (which means that the condominium has been started and that there is project documentation in the court). The contract should provide for the deadline for the completion of the works and penalties if the deadline is missed. Also, ask if the investor has already mortgaged the property to the bank for a loan – if so, demand that the mortgage be canceled before handing over the apartment to you. In these situations, a bank guarantee or payment through a notary deposit/escrow account is useful: your money is paid to the investor only when it registers you as the owner. In general, a piece of advice from a lawyer when buying new construction is worth a fortune, because it helps to protect yourself from possible fraud or loss of investment.
• Foreign nationals – check the requirements: If you are a foreigner buying a property in Bosnia and Herzegovina, find out about the legal restrictions. As mentioned, the basic requirement is the principle of reciprocity between countries. Check if there is an agreement or practice that allows you to acquire ownership – your lawyer can find out this from the Ministry of Justice in Sarajevo or the relevant authorities. If direct registration will not be possible, plan to establish a limited liability company (d.o.o.) as an alternative. Foreign buyers also have to complete administrative steps: obtain a Unique Master Citizen Number (JMBG) or ID number, and often a work/residence permit if they will be staying in the property for a longer period. Hiring a lawyer who speaks your language and is familiar with the procedures will greatly simplify the process. He or she will prepare all the necessary documentation for you, communicate with the authorities and ensure that the purchase goes according to the laws.
• Hire a specialized real estate lawyer: Not all lawyers are equally experienced in real estate matters. It is advisable to hire a real estate lawyer / attorney who has a track record of successful cases of purchase and sale, registration (book-entry) and property disputes. Before choosing, feel free to ask the lawyer for references in this area. Also, local experience can be valuable – knowledge of the procedures in a specific court or cadastre (e.g. in Sarajevo, Tuzla, Banja Luka) can speed up the resolution of your case. A good lawyer will listen carefully to your needs, warn you in advance of possible obstacles and take care of every detail of the transaction. Remember, "cheap one" is not always the best one – quality legal advice can save you from disproportionately greater losses. Therefore, choose a professional you trust, given that investing in professional legal assistance means security for your property / real estate.

How much do the services of a real estate lawyer cost?

Attorney-at-law / lawyer services in Bosnia and Herzegovina, including those related to real estate, are charged according to the Attorney Tariff / Lawyer Tariff, prescribed by the Bar Association. In the Federation of Bosnia and Herzegovina, the new Attorney Tariff has been in effect since June 2025 – the first change in 22 years – which increased the value of a calculation point from the previous 3.00 BAM (KM) to 5.60 KM. That point is the basis for calculating attorney fees, which practically means that certain legal services will become more expensive (e.g. filing a small claim that previously cost 240 BAM, now costs around 448 BAM, therefore ~87%). The Federation of Bosnia and Herzegovina 2025 Tariff on Attorney Remuneration and Fees for Attorney Work precisely determines how many points a lawyer is entitled to for certain actions. For example, it is stipulated that for drafting legal submissions or contracts, a lawyer is entitled to a reward based on the time spent – 30 points for every half an hour of work on a document that has been started. Also, 30 points per half an hour are provided for legal advice and consultations, while reviewing files or land registers is 10 points per half hour. Of course, in practice, all this depends on the complexity of the case; simpler cases may require less time (fewer points), and complex disputes more.

It is important to point out that the lawyer and the client can agree on the method of calculating the service in advance. The Tariff allows for a fixed amount, an hourly rate or even a fee depending on success to be agreed upon in a written contract (e.g. a percentage of the value of the proceedings, up to 30%). If there is no separate contract, then the official Tariff applies. In both cases, the client can always request an estimate or clarification of costs in advance – the lawyer is obliged to present how his award will be calculated and what the additional costs are (e.g. taxes, travel expenses, etc.).

In the context of real estates, the costs of hiring an attorney-at-law can vary: for relatively routine tasks such as checking documentation or drawing up a purchase agreement, a lawyer fee shall be in the range of several hundred Bosnian marks (convertible marks – KM) (depending on the hourly rate and the number of corrections/amendments to the contract / agreement). On the other hand, conducting a court case over real estate (e.g. a claim to determine ownership of a large sum of money) can cost several thousand BAM, given the length of the proceedings and the value of the subject matter of the dispute (the Tariff provides for a range of points according to the value of the disputed real estate). It is important to emphasize that these fees are an investment in legal certainty – a good lawyer can prevent the loss of real estate or money, which is a disproportionately greater damage than the amount of the fee.

In conclusion, before any real estate transaction, it is useful to consult a lawyer / attorney / attorney-at-law and inquire about the approximate costs of legal services. A transparent lawyer will explain to you what the Tariff prescribes and how much his or her representation will cost you approximately. This way, you can make an informed decision and avoid misunderstandings.

Conclusion: Regardless of whether you plan to buy an apartment in Sarajevo, a family house in Tuzla, or invest in land in any part of Bosnia and Herzegovina, hiring an expert real estate lawyer will ensure you a peaceful night's sleep. From the first check of the papers, through the conclusion of the contract / agreement, to the final registration of your name in the land register – the lawyer will watch over every step. This way you will avoid potentially expensive mistakes and be sure that your property is firmly protected by the law. In the dynamic world of real estate, having an experienced legal counsel means buying or selling real estate safely, legally and efficiently, which is an invaluable asset for any client.