PURCHASING PROCEDURE IN MONTENEGRO
Purchasing a property in Montenegro is a simple and fast process and having qualified Professional Estate Agents and Legal aids that will assist through the whole buying procedure will ensure that the purchasing process is effortless and well ordered.
A basic outline of the process is set hereunder, this is solely an indication of the process, as every purchase / or sale may have various terms and conditions that could vary, however, the general process should not differ much:
Once the Purchase price has been negotiated and agreed between the buyer and the vendor with the assistance of the Estate Agent, a Deposit is placed with the Vendor, his Lawyer or the Estate Agents. A Non-refundable deposit could vary from Euro 1000 to 10 % of the purchase price agreed.
At this point it would be advisable to appoint a Lawyer (Licensed in Montenegro) to act and assist you throughout the process, should one wish to opt for the Agents assistance in appointing a lawyer, the Agent can recommend various reputable lawyers. A reservation agreement is drawn up and signed by all parties and the property is then withdrawn from the market.
It is further recommended to Open a local bank account, this can be useful for paying taxes and legal fees throughout the purchasing process and further along the line to settle any ongoing payments.
Prior to drawing up the Contract your appointed lawyer ensures that the property is compliant, checks all the legal documentation and ensures that the property is free from any liabilities and thus gives the clearance that the property can be sold.
Contract terms and conditions are agreed upon between the Purchaser (Buyer) and the Vendor, in collaboration with their respective lawyers and with the assistance of the Estate Agent.
The contract is signed by you, or your lawyer (via Power of Attorney) at your appointed Notary`s office in Montenegro and the remaining balance of the agreed purchase price is transferred directly to the Vendor and in accordance with the terms and conditions stated in the Contract.
Once the Contract is signed and notarised (Verified) by the Notary, the Notary ensures to send a copy of the Sales Contract to the Tax Authorities who will evaluate the property based on the contract and market prices. Within 15 Days of receiving notice from the Tax Authorities, a payment of 3% will have to be made to the Tax department known as RETT (Real Estate Transfer Tax). While property built by individuals is subject to property tax, first-time buyers who have purchased property from a developer are exempt from this tax.
The final part of the process is to transfer / register the property in your name, which normally takes 10 to 15 days for the land registry to issue the ‘Title’ (known as "List nepokretnosti). This final application is handled by either your lawyer or notary.
After all of the steps explained above, you are ready to move into your new home.