This guide outlines the key requirements and steps involved in selling real estate in Montenegro.
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Listing Your Property
To list your property for sale, we will require proof of ownership. As title deeds can be checked online, either the title deed number or a clear photograph of the deed is usually sufficient.
Please note that the paperwork must be in order. Under current regulations, properties without the building permit cannot be sold, as the notary will not certify the Sale and Purchase Contract. If your property falls into this category, we strongly recommend completing the legalisation process as soon as possible.
We will also need access to the property in order to take photographs and videos and to arrange viewings with potential buyers. Ideally, we would have a copy of the key, alternatively we will require the contact details of a person who can provide access when needed.
Before we can start marketing the property, we will need a signed Agency Agreement, a completed PEP (Politically Exposed Person) declaration and a copy of a valid passport or ID card.
As a legally registered real estate agency, we are required to collect this documentation in accordance with the Law on Real Estate Brokerage and Leasing (Article 38) and the Law on Prevention of Money Laundering and Terrorist Financing (Article 17).
Additional Requirements for Land Sales
If you are selling a land plot, we strongly recommend obtaining valid Urban and Technical Conditions (UTU) before marketing the property.
The UTU document outlines what can be built on the land, including the permitted building footprint, gross construction area, number of floors and any planning restrictions that may apply.
Having up-to-date UTU makes the property more attractive to buyers and helps avoid delays during the due diligence process.
How do you obtain Planning Conditions (UTU)?
The application for Planning Conditions (UTU) can be submitted by the owner of the land or their authorised representative, either in person or online.
The application must include the plot number and cadastral municipality, together with proof of payment of the administrative fee and the UTU issuance fee, which is typically around €50 for residential properties.
The legal deadline for issuing UTU is 30 days from the submission of a complete application.
Ownership Requirements
The seller must be registered as the owner of the property before the sale can be completed.
If the property has been inherited, all inheritance proceedings must be completed and registered with the Cadastre before the property can be sold.
Signing the Sale and Purchase Contract
The Sale and Purchase Contract is signed before a Montenegrin notary. Any documents issued abroad may need to be officially translated into Montenegrin.
If the seller does not speak Montenegrin, the notary will require a licensed court interpreter to be present during the signing. The interpreter will translate the contents of the contract and the notarial proceedings to ensure that the seller fully understands the transaction. The cost of the interpreter is borne by the seller in this case.
If the seller cannot attend the signing, a Power of Attorney can be granted to a lawyer or another representative in Montenegro. The wording is normally prepared by the notary handling the transaction.
The Power of Attorney must:
- Specifically authorize the sale of the property
- Be notarized in front of the notary in Montenegro or in the seller's country of residence
- Have an Apostille (where applicable and if notarized outside of Montenegro)
What is an Apostille?
An Apostille is an international certificate that confirms the authenticity of a public document, allowing it to be recognized in another country.
You must apply for an Apostille in the country where the document was issued. It is usually issued by a court, Ministry of Justice, Ministry of Foreign Affairs, or another authority designated under local regulations.
Marital Status Requirements
If the seller was married when the property was purchased, the spouse must consent to the sale, even if the property is registered in only one spouse's name.
This is because property acquired during marriage is generally considered joint marital property.
The spouse may:
- Attend the notary signing in person, or
- Provide a notarized consent document containing the details of the property, with an Apostille if signed abroad
If the seller was not married at the time the property was acquired, a notarised statement confirming this must be provided. If signed outside Montenegro, the statement must also be Apostilled. Alternatively, in countries where such documents are issued, an official certificate confirming unmarried status at the time of acquisition may be accepted.
The notary will require a copy of the marriage certificate.
For inherited properties or properties obtained through a divorce settlement, supporting legal documentation will need to be provided.
In most cases, the buyer's lawyer or the notary will also request a copy of the original acquisition contract or other supporting documents to verify ownership history.
Existing Tenancies
If the property is currently rented, please inform the agency at the beginning of the sales process and provide a copy of any tenancy agreement. Buyers will often want to know whether the property is rented and whether it can be delivered vacant upon completion.
Mortgages and Other Encumbrances
If there is an existing mortgage, court order or any other encumbrance registered against the property, this should be disclosed at the outset.
In many cases, mortgages can be settled from the purchase proceeds, provided the bank issues the necessary documentation to release the mortgage from the title deeds.
Furniture and Contents Included in the Sale
Properties in Montenegro are usually sold with the furniture included unless agreed otherwise.
If there are any items you would like to keep, please let your agent know when listing the property so that this can be clearly communicated to potential buyers.
Receiving the Purchase Funds
The purchase price must be paid either to the seller's bank account in Montenegro or, if the seller does not have a Montenegrin account, through the notary's escrow account.
Please note that using the notary's account may result in additional transfer costs and bank charges.
Montenegrin banks apply strict Anti-Money Laundering regulations. As the seller, you will need to provide the bank with a copy of the Sale and Purchase Contract. In some cases, the bank may also ask the buyer to provide proof of the origin of funds before the money can be transferred.
As all property transactions in Montenegro are conducted in euros, we recommend opening a euro-denominated account to avoid bank conversion fees.
Personal Documentation
Please ensure that your personal details match across all documents, including title deeds, passports and identification documents.
Any discrepancies in names, dates of birth or passport numbers may require additional declarations or supporting documentation before the sale can be completed.
Utility Bills, Taxes and Other Obligations
Before completion of the sale, the seller must provide proof that all obligations relating to the property have been settled.
This may include:
- Electricity bills
- Water bills
- Waste disposal charges
- Annual property tax
- Tourist tax (if applicable)
- Building maintenance fees (if applicable)
- Any other charges related to the property
The annual property tax is payable by the person registered as owner on the 1st of January of the current year.
Tax Considerations
Sellers should seek independent tax advice regarding any tax obligations that may arise from the sale of the property.
Typical Sales Process and Timeline
While every sale is different, the process usually follows the steps below.
- Listing the Property – The property is listed once the required documentation has been provided, the Agency Agreement has been signed and the marketing material has been prepared.
- Viewings and Negotiations – Potential buyers are introduced to the property and viewings are arranged. Once a buyer decides to proceed, negotiations regarding the price and timeline take place.
- Reservation and Due Diligence – In many cases, the buyer reserves the property with a reservation agreement and deposit. During this period, the buyer, their lawyer and the notary review the property's legal documentation.
- Preparation of the Sale and Purchase Contract – Once the due diligence has been completed, the notary prepares the Sale and Purchase Contract and confirms that all required documents are available.
- Signing Before the Notary – The Sale and Purchase Contract is signed before a Montenegrin notary by the buyer and seller, or their authorised representatives.
- Payment of the Purchase Price – The purchase price is transferred either to the seller's Montenegrin bank account or through the notary's escrow account, depending on the arrangements agreed between the parties.
- Registration of Ownership – Following payment and confirmation that the purchase price has been paid in full, the notary submits the Sale and Purchase Contract to the Cadastre for registration of the buyer's ownership.
- Handover of the Property – Once the purchase price has been received in full, the buyer takes possession of the property.
How Long Does the Process Take?
The timeframe depends on the complexity of the transaction and the readiness of the documentation.
Straightforward transactions with all paperwork in order can often be completed within 2-6 weeks.
Transactions involving Powers of Attorney, inheritance proceedings, mortgages, foreign documentation or other complexities may take considerably longer.
Having the necessary paperwork prepared in advance is the best way to ensure a smooth and efficient sale.
Agency Fees and Transaction Costs
Our standard agency fee is 5% plus VAT and is payable by the seller upon completion of the sale.
Depending on the circumstances, the seller may also incur additional costs, including:
- Translation fees
- Court interpreter fees (if required)
- Apostille and notarization costs for documents issued abroad
- Legal fees (if using a lawyer)
The buyer is generally responsible for paying the notary fees, property transfer tax (currently between 3% and 6%, depending on the purchase price), court interpreter fees where required, and any legal fees if they choose to appoint a lawyer.
Please note that the exact costs will vary depending on the transaction and the documentation required.
Preparing Your Property for Sale
First impressions matter.
To maximize buyer interest, we recommend keeping the property clean, tidy and well presented, particularly during photography sessions and property viewings.
A well-presented property photographs better, attracts more enquiries and often achieves a faster sale.
Our team will be happy to answer any questions and guide you through the process from start to finish.
Thank you for choosing Montenegro Prospects.
Disclaimer
The information contained in this guide is intended as a general overview of the property sale process in Montenegro. While every effort has been made to ensure accuracy, legislation, tax regulations, banking requirements, and administrative procedures may change over time. We strongly recommend obtaining independent legal and tax advice before proceeding with any property sale.
For further information, please contact:
Montenegro Prospects
Tel: +382 (0)67 393 792
info at montenegroprospects.com (info[at]montenegroprospects[dot]com)
www.montenegroprospects.com
