Step by Step Property Purchasing in Montenegro
Property purchasing in Montenegro basically consists of a bunch of systematic procedures in Montenegro. All transactions are carried out in the authorized state institutions. It is highly suggested to proceed under the supervision of a professional advisor throughout. This way there will be no room for error, from finding the best property to receiving the title deed.
Steps of Buying a Real Estate in Montenegro
There are 5 main steps to follow while buying your overseas home in the gem of Adriatic, Montenegro:
- Finding the best property
- Attending a property viewing tour
- Making the deposit payment and signing the sales contract
- Attending notary appointment for title deed transfer
- Getting the title deed and receiving the keys
• Find the Best Property That Matches Your Lifestyle
Montenegro is gaining popularity among overseas investors. Due to the high demand, the number of high-end housing projects also have increased. It may be difficult to choose the best properties for sale that match your needs, and preferences.
As the first step, you should create a wish list that contains every expectation you have from a property. Then, you should share it with your sales agent. A professional agent with in-depth knowledge of the local market will lead you to the best home that perfectly suits your criteria.
• Get to Know Your Future Home
The second step is to gather information about your property. It is quite important to learn all legal incumbencies to avoid complications in the future. The utility subscriptions could be shared with other units, or there could be a lien over the property.
At this step, a professional consultant would become handy. Your experienced advisor can do all the background checks of your future home, like payment of the property tax in Montenegro since they can communicate with state institutions.
• Pay the Deposit and Sign the Sales Agreement
If everything is cleared out, it is time to negotiate with the seller. In general, the deposit amount is applied as 10% of the purchase price in Montenegro. With the payment of the deposit, sales transactions begin.
Paying the deposit is essential to reserve your spot, and take the property off the market. Meanwhile, a sales agreement must be prepared to present it to the notary in the next step. This agreement must be prepared under the supervision of a legal consultant since it’s binding for both parties. Both parties are obligated to sign both copies.
Details like identity information and bank account numbers that will send and receive the sales amount will also be among the information processed with this contract.
• Conduct the Property Transfer Transactions at the Notary
The fourth step is to get an appointment with the notary. Your real estate agent will make the appointment.
The buyer and seller, or a representative authorized by the parties, must be present at the notary appointment. There, parties will proceed with the transactions under the supervision of your consultant, and a sworn translator.
The notary will first check the sales and purchase agreement. Then, they will deem it valid unless there is a violation of the law or an unfulfilled condition. After confirming the completion of the sale, the notary will forward all documents to the land registry office in Montenegro. The issuance of the title deed will be conducted there.
• Congratulations, You are Now a Proud Owner of a Montenegrin Property!
The last step is to receive the title deed of your new home. The title deed is called “List nepokretnosti” in Montenegrin. It states and safeguards the ownership.
Buyers are declared as property owners after the confirmation of the notary. It could take 2-3 months to receive your title deed in Montenegro.
Until then, you can freely use your new home in Montenegro. The notary-authenticated sales contract will be the official declaration of your homeowner status.
What are the Required Documents to Buy a Property in Montenegro?
To finalize the purchase, buyers will need to prepare certain documents. It will be needed for the title deed conveyance. Gathering necessary documents is an essential step to transfer ownership from the seller to the buyer. Here are the essential documents to buy a property in Montenegro:
• Valid passport of the buyer
• Power of attorney if the procedures will be followed by a representative
• Sales contract
There might be additional documents requested from both parties in certain circumstances. It is important to proceed with a local professional, just to make sure everything procedure is being followed properly.
Essentials of Buying Property in Montenegro
- Foreigners can easily buy a property in Montenegro. However, there are certain areas that are restricted for foreign investors to buy. Foreign property buyers cannot buy lands in natural reserves, lands in public use, agricultural lands or forests over 5000 sqm, lands of cultural monuments, land-border areas at a depth of one kilometer, islands, any land prohibited by the government to protect the country's interests and security.
- Foreigners who want to buy agricultural lands can only proceed with their transactions through a company.
- The presence of a sworn translator at the notary office is mandatory. The sworn translator should also sign all sales contracts.
- It is highly recommended to work with a professional consultant to proceed with caution. Plus, not knowing the local language could create difficulties in the state institutions. It is always best to advise a professional, especially for foreigners who are buying an overseas property.
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