If you've heard that Serbia is becoming an attractive real estate market and you're considering buying property here, it's important to understand how Serbian law and practice work.
One of the first steps is paying a deposit, known in Serbia as kapara.
What is a deposit (Serbian "kapara")?
A deposit is an amount paid by the buyer when signing the preliminary purchase agreement. It confirms the buyer's intention to proceed with the purchase and reserves the property until the final sale contract is signed.
The amount is not prescribed by law. It is negotiated between the buyer and the seller and later deducted from the final purchase price.
What happens if the deal falls through?
Serbian law provides clear rules:
If the buyer withdraws without a valid contractual reason, the seller keeps the deposit.
If the seller backs out, the buyer may claim double the amount of the deposit.
For this reason, the preliminary agreement should clearly define the rights and obligations of both parties. As one of Serbia’s leading real estate agencies, City Expert can help you prepare a clear and legally sound agreement. Contact our English-speaking agents for professional support.
The preliminary agreement matters
In Serbia, the preliminary agreement is usually notarized before a public notary.
A properly drafted agreement protects both parties by defining exactly what happens if deadlines are missed, financing fails, or either party decides not to proceed.
Can the deposit be held by a third party?
Yes.
Instead of transferring the money directly to the seller, the parties may agree to place the deposit in a court or notary escrow account until the agreed conditions are fulfilled.
This option is often used in more complex transactions and provides additional security for both buyer and seller.
How City Expert helps foreign buyers
Buying property in another country involves more than finding the right apartment. Local regulations, legal documentation and administrative procedures can be challenging without professional guidance.
As Serbia's leading real estate agency, City Expert supports international buyers throughout the entire process—from finding suitable properties and reviewing documentation to coordinating the purchase and communicating with all parties involved.
Contact us and take the first step toward owning real estate in Serbia!
Ana Stojanović
Real estate copywriter
Words build worlds.
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