Law on Land Registry stipulates the obligation of registration of all real estate / land but not the obligation of registration of all transactions relating to land/real estate, and there are no special circumstances under which it is required to do so, therefore there are no prescribed penalties for not registering which we believe is a legislative omission.
According to the data available in the Federation BiH approximately 80% of the land is registered.
By registering transactions one primarily protects the right to property/ownership of a real-estate as property rights are awarded once the property is registered in land registers.
Cadastral data and land registry data are often different and efforts are made on reconciliation of the same.
Registration of a mortgage ensures financial claims of creditors in case the borrower fails to meet the obligations because the claims can then be settled through sale oft property.
If the real estate transaction is not registered in the Land registers the registered owner shall be deemed as property owner who, in that case, can misuse the unregistered real estate and resell the same property or add charges to it.