Property purchase process in Albania

Is it difficult to buy real estate in Albania?

There are no restrictions on the purchase of real estate by foreigners in Albania, with the exception of agricultural land.
But since there could be some things different than in you'r home country, you should have a look to our Checklist and contact a lawyer for assistance.

The purchase process

The purchase process usually involves the signing of several contracts:

• reservation contract
• commitment contract
• preliminary contract
• purchase contract.

After signing the reservation contract, the buyer reserves the property for about 4 weeks. During this time, the buyer (through their attorney) conducts due diligence on the property.

Once all the necessary documents are in place, both parties sign the "main contract." In this document, they agree to buy or sell the property. It contains information about the conditions, payment terms, prices and purchase terms. The commitment contract is signed before a notary public, a government-appointed official.

The final purchase contract is signed in front of a notary once the property is fully paid for. The final contract is registered at the Land Registry (ZRPP) so that ownership can be transferred to the new owner.
According to the World Bank (Doing Business), six procedures are required to register a property, which takes about 21 to 23 days to complete.

Deposit
In the case of used real estate, a 10% deposit is usually paid when the preliminary contract is signed. For new properties or projects that are not yet in the planning stage, the down payment is usually 30%.

Keep the history in mind

Buyers should also be careful when dealing with real estate agents in Albania. There are only a handful of established real estate agencies in Albania. However, there are about 100 unscrupulous part-time agents. The industry is not regulated. Anyone can claim to be a real estate agent. In some cases, some agents even sell properties without the knowledge of the rightful owners.

Confiscated during the communist era
Although the involvement of a lawyer is not mandatory for the purchase of a property in Albania, it is strongly recommended. Buyers should be especially careful if the property was confiscated during the communist era. Since the end of communism in the early 1990s, about 85% of properties have been returned to their former owners. For the remaining 15%, located mainly in Tirana and the coastal areas, a solution has yet to be found. The buyer's lawyer must make sure that the property in question is free of liens and is in the name of the actual seller.

Quality of construction
Another problem is the quality of construction. Some developers take shortcuts in issuing building permits. Some apartments are smaller than specified in the contract.

Fees