The Ministry of Construction has officially presented the new Draft Tenancy Act, which aims to comprehensively regulate the sector following thirty years without a modern legislative framework. The objective is to introduce order and clarity to long-term tenancies, which have previously operated in a less regulated manner.
The key innovation in the draft is the introduction of mandatory solemnisation of the lease agreement by a public notary. This legal instrument is intended to form the basis of all future tenancy relationships, providing greater legal certainty and documentation of transactions.
The notarial deed plays a key role in accelerating the resolution of potential disputes. It facilitates the easier recovery of claims and avoids protracted court proceedings, which should reduce the time and cost required to resolve disputes between parties.
The legislator’s intention is twofold: on the one hand, to protect landlords from the risk of non-payment, and on the other, to ensure stability and legal protection for tenants. This approach is designed to balance the interests of property owners and individuals seeking long-term accommodation.
The system is also set to include the Croatian Agency for the Protection of Creditors. Its role, according to the draft law, would be crucial for additional security and the implementation of specific protective mechanisms, thereby expanding the network of institutions involved in the oversight of this sector.
