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 email@example.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