Montenegro Terms of Real Estate Brokerage

In Montenegro, our real estate agency based in Budva serves all interested parties from Hungary and other places who have set their sights on buying properties on the coast of Montenegro for sale for investment or other purposes. The employees of our office speak Hungarian, Serbian, German, English, Italian, and constantly research the best offers for sale, which we offer based on the knowledge of our customers' needs and expectations, and then show them to our customers.

Property purchase procedure in Montenegro

Buying real estate in Montenegro is simple and straightforward. With the recent introduction of notaries, the whole process is safe and transparent for both parties. If the client is seriously interested in the property they want to buy in Montenegro, we start the reservation process, which includes the following: The client signs a standard reservation contract and pays (usually between EUR 1,000 and 10%) which is part of the purchase price, thereby the property will be withdrawn from circulation. This is usually a non-refundable deposit that is included in the Booking Agreement. If the client is seriously thinking about buying real estate, while in Montenegro, take cash with him to pay the deposit, or send the amount from Hungary.

After the reservation, the sales contract is signed by the customer (or his authorized representative) and the seller at the notary office in Montenegro. All details related to the contract are sent to the notary by e-mail, the notary prepares the contract and checks all legal requirements. An official translator of the language spoken by the customer will take part in the meeting held at the notary. The contract determines how the buyer pays the seller for the property.

Upon payment of the full purchase price of the property, the seller hands the customer a document (locally known as clausula intabulandi), on the basis of which the Clerk submits a change of ownership request to the Real Estate Administration and the buyer is registered as the new owner of the property. The buyer pays a 3% real estate transfer tax for the change of ownership, if the customer buys a new property from an investor, this tax does not have to be paid.

The property tax varies from municipality to municipality. In the three coastal settlements, Budva, Bar and Tivat, where most foreign investors buy real estate, the property tax is 0.5-0.6% per year for apartments and houses.

Notary and other costs

Notary fees depend on the value of the contract

- Up to 120,000 euros, the contract fee is 360 euros

- Up to 500,000 euros, the fee is 610 euros

- Up to EUR 1,000,000 the fee is EUR 940

- The notary's fee cannot exceed 5,000 euros

Official translators' fees

- The fee for a written translation of the contract is 20 euros per page, while the fee for an oral translation at   the notary's office is 40-50 euros per hour.

- Agency fee – 3%

Terms of use for real estate purchased in Montenegro

- The Montenegrin real estate for sale is presented to the Buyer by signing an Agency/Broker contract with   the Real Estate Office of Aktuális ingátelok in Hungary. The potential buyer also signs a viewing list   (minute), which records the properties presented by the Agent. In the case of real estate purchased in   Montenegro, the Buyer is obliged to pay an agent's commission in the amount of 3% of the purchase price   (excluding VAT).

- Selection of properties

It is the professional's job to fully prepare for your visit so that you don't waste your time and we don't waste our money on tourist trips. Please provide as many details as possible, such as region, property type, property min. m2, the minimum required number of bedrooms, the maximum distance from the sea, a comfortable budget and other aspects essential for buying real estate.

In order to find the ideal property for you, we search all possible sources, including the databases of many agencies, in order to cover the entire market. Thus, the real estate portfolio to be presented is always ready for the time of your arrival in Montenegro.

- Viewing properties

Please note that viewing properties is hard work. We understand that you can arrive for 2-3-4 days and you should make the most of these days. Our handpicked local licensed agents work from 8-9am until daylight. It is possible to view 10-15 properties per day, but we do not recommend more than 6-10 houses. Otherwise, it will be a fantastic mess within a few days. Considering that some preparation has been done, it is usually enough to look at 3-7 properties to understand what you want and where. If you can't choose at once, you can come again and again. But if you don't buy, we would appreciate it if you could cover the costs of gas, tolls, and ferries.

It is not recommended to bring children under the age of 12 to the viewing, because they usually get tired after the second property presentation, especially in summer. A viewing is a combination of careful planning and free improvisation by an agent who follows a change in the mood or ideas of a potential Buyer. Sometimes buyers only want to see properties that have been pre-selected by letter. Not quite the right approach. We always have to consider hot properties that may appear days or hours before viewing. And they can be the best value items.

- Negotiations

A professional real estate agent ensures that the negotiations are conducted. The success of the agent is only if the seller and the buyer reach an agreement on all issues of sale and purchase. That is why we try to put them together to discuss all the questions that the professionals will formulate in the form of a sales contract. The appropriate agent will indicate to the parties all items to be negotiated. First, the price. Our agent knows the prices of all types of real estate in Montenegro, so he can suggest the fair market value of any house, apartment or plot.

It is also important to agree on the schedule of payments.

- Property inspection

Basic information about all properties is available in the real estate register and the cadastre. The local licensed agent will inform you of the tax and legal consequences of the transaction and the upcoming procedure.

- Database maintenance

Information about properties and their prices is based on data and documents provided by the sellers of the properties.

- Commission

The Hungarian agent's commission is usually payable upon conclusion of the contract between the Seller and the Buyer. We know from our experience that sometimes it is not a sales contract. It can be an exchange agreement, a share purchase agreement, a joint venture agreement, an assignment agreement, etc. too. The commission is 3% without VAT, calculated on the basis of the value of the contract, which is the cost of the Buyer! If you previously covered the agent's gas and other costs, these will be deducted from the commission payable. For amounts above 2 million euros, the fees are negotiable.

- Certain rules of professional ethics in Montenegro

If you have viewed the property with one agent, you cannot view it again with another agent because the other agent had a better car. According to Montenegrin legislation, an essential part of the real estate agent's work is to bring the buyer to the property he likes and wants to buy. But if you decide to buy the property, you are entitled to pay commission to the agent, even if it happens within a year or two, and even if the property is bought by your children or your company. Thank you for understanding the above.

- Confidentiality

Official Montenegrin legislation does not require agents to report transaction information to any regulatory body. So all you need to know is what the notary must include in the agreement. We guarantee that this information and the details of the transaction will remain confidential