«The laws of Montenegro guarantee safety to both parties of a transaction». The process of buying property in the country

«The laws of Montenegro guarantee safety to both parties of a transaction». The process of buying property in the country

14.09.2020 16:30

Montenegro is one of those countries where it is possible to get a legal stay through the real estate purchase. Svetlana Konyukhova, the Director of the Monte-Life Real Estate Agency, shared about the process of buying housing in the country.

Process of purchasing real estate for a foreigner

In Montenegro, there is only one restriction for a foreign citizen on immovables purchase. If buying local land, a plot with an area of more than 4999 sq. m can only be registered for a legal entity.

To conclude a real estate transaction, a foreigner will need to personally attend the appointment and have an international passport.

The process of buying a property includes several stages:

  1. First, a real estate agency prepares all the necessary documents, which will then be handed over to the notary.
  2. Second, with a licensed interpreter, a buyer signs a purchase and sale agreement with a notary. There is no doubt about the transaction transparency: a notary is liable to be prosecuted for concealing information about the course of the process, as well as about possible risks and cases of encumbrance for purchased objects.
  3. Third, a buyer pays a deposit to a seller in the presence of a notary. Usually, it is 10% of the property value. If later a customer decides to cancel a transaction, the deposit will not be refunded.
  4. The final payment to a seller can be made in a local bank or by money transmission. To do this, one will need two types of an agreement: an original and a translated one.

Buying real estate in Montenegro

Sale and purchase agreement

Signing a contract between a buyer and a seller is mandatory.

The laws of Montenegro guarantee safety to both parties of a transaction:

  • a buyer will not be able to transfer a contract to the national inventory for registration of a property in their name until they have paid money to a seller;
  • while a seller can not sell this property to a third party.

A contract must specify how and according to what schedule a buyer will make a payment.

After a buyer pays the entire amount, a seller signs the agreement (Clausulantabulandi) of acknowledgment that they are in good standing. After a full settlement between two parties, a notary issues signed contracts to both a buyer and a seller.

A notarial agreement is a document based on which a real estate owner is re-registered in the national inventory. After a 60-day pendency of an application by the authorities, a buyer receives a certificate of ownership.

Additional expenses

A property buyer will need to pay for notary services. The Ministry of Justice of Montenegro approves all prices. Besides, it will be necessary to pay for a real estate agent and judicially licensed interpreter services, if a buyer does not speak the Montenegrin language.