Buying off plan, Is it different if the property hasn’t been built yet?

Yes it is a little different to buying a completed property, in that paying for the property will usually be in instalments, and everything planned needs to be specified in advance. An outline is below. Please email info@montenegroprospects.com for more details on a particular project.

  • 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.
  • Appoint a lawyer (licensed in Montenegro) in Montenegro or UK to act on your behalf
  • The terms of the Purchase Contract are negotiated and specifications are drawn up by the developer and your appointed lawyer
  • The contract is signed by you, or your lawyer (via Power of Attorney) in the notary`s office in Montenegro
  • 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 or utility permit
  • The dynamics of the payment may vary
  • Once the property is finished – the  annex  is signed by you, or your lawyer (via Power of Attorney) in the notary`s office in Montenegro
  • Papers are submitted to the local land registry
  • The property is then registered in your name
  • Usually for off plan purchase there is no 3% purchase tax, but please confirm this with the lawyer