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Construction law

Energy and real estate: three typical risk situations

As of 1. 1. 2026., the new Energy Efficiency Act applies, noting that certain provisions will enter into force on 1. 1. 2027. (Art. 43(6)–(8)). Although this is primarily a statute setting public policies, measures and instruments, its practical impact is clear: energy efficiency is increasingly finding its way into your decisions and contracts, whether you are selling, leasing, renovating or financing a property. Energy costs and the predictability of consumption have already become part of value and risk assessments, and documentation that previously passed on trust is now increasingly subject to formal checks. In practice, the risks most often...

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Real estate investments after 1 January 2026: key changes under the new ZPU

As of 1 January 2026, the new Spatial Planning Act applies, and the previous act has been repealed. Although at first glance it may seem like a technical statute for planners and public administration, the changes are very concrete for investors and landowners: faster and more digital procedures, clearer deadlines, a stricter regime on the coast and in tourism, and mechanisms that can unblock projects that have been stuck for years due to infrastructure. One of the biggest changes is a full shift towards digital planning. Spatial plans are prepared and adopted in the information system through ePlanove, and the decision...

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New Building Act and Faster Permits

As of 1 January 2026, the new Building Act is in force. In official announcements it has been emphasised that obtaining building permits should be significantly faster, with communication and monitoring of procedures through digital systems (eDozvola). In practice, for years the most time was lost not on design, but on waiting for various statements: special conditions and connection conditions (electricity, water and sewerage, transport, municipal infrastructure, etc.). The new Act is drafted so that this part of the procedure becomes predictable: it introduces deadlines, accountability and, most importantly, clear consequences when deadlines expire. The central novelty is in Article 48 of...

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Liability for material defects

According to the Croatian Obligations Act, a defect exists if the purchased item does not conform to the agreed description, type, quantity or quality, lacks the expected functionality, compatibility or other features, or is not suitable for the particular purpose the buyer informed the seller about. A defect is also deemed to exist if the item was not delivered with the agreed accessories, instructions or updates. Likewise, a defect exists if the item is not fit for ordinary use, does not match a sample or model shown by the seller, or lacks qualities the buyer could reasonably expect. The seller is not...

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Real Estate Valuation

The valuation of real estate in the Republic of Croatia is regulated by the Real Estate Valuation Act, which was enacted on July 3, 2015, and has been in force since July 25, 2015. The valuation of real estate must be conducted with the diligence of a competent expert, taking into account all available evidence to ensure that the result is sustainable upon verification. Real estate valuation is used in property transactions, determining the value of collateral objects, property insurance, dissolution of co-ownership communities, investment and property value enhancement matters, encumbrance and depreciation issues, land development procedures, urban land consolidation, expropriation, and...

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Liability for construction contract defects

Building contract is actually a service contract whereby a contactor agrees to deliver building work according to the specific project within a certain deadline and a client agrees to pay a certain price in exchange. Each contract needs to include both subject and price. The subject of a building contract is a construction of certain building on the certain land or performance of other building works. Hereby houses, buildings, bridges, water- gates, tunnels, roads, sewage systems etc. are considered buildings. Common trade works where e.g., no change in the apartment structure was carried out, geological-exploration drilling or some isolation works etc....

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