Buying Guide
Purchasing a property in Montenegro is a simple process and we do everything we can to ensure your purchase runs as smoothly as possible. An outline of the process is set out below, but please contact us for full information.
There are different processes for resale and off plan properties:
Off Plan Properties
- Negotiate a price acceptable to you and the developer
- Place a deposit on the property to reserve it (usually around 5000 euros), and a reservation agreement would be signed by both parties. The deposit is usually held in a Client Account.
- Appoint a lawyer (licensed in Montenegro) in Montenegro or UK to act on your behalf
- Pre-contracts and specifications are drawn up by the developer and your appointed lawyer will sign once approved by you. Upon signing, this is the point at which the first of staged payments are due
- A typical example of staged payments on an off plan property would be
30% Pre-contract (minus deposit)
30% Foundations complete
30% Roof complete
10% Key handover and snag list
Resale Properties
- Negotiate a price acceptable to you and the vendor.
- Place a deposit (between 1000 euros and 10% of purchase price) to take the property off the market, and a reservation agreement would be signed by both parties. The deposit would usually be held by the vendor
- Open a local bank account
- Appoint a lawyer (licensed in Montenegro) in Montenegro or UK to act on your behalf
- The balance of your deposit (normally 10%) is paid within 10 days
- The contract is signed by you, or your lawyer (via Power of Attorney) in the Montenegrin court and final payment is immediately transferred from your Montenegrin bank account to the vendor
- 3% purchase tax is paid. (The value of the property is determined by the Inland Revenue office).
- Papers are submitted to the local land registry
- The property is then registered in your name