How to buy property in Montenegro
Montenegro is a country in the Balkans, comfortably located in its western part on the shores of the warm Adriatic Sea.
A mild Mediterranean climate dominates Montenegro, so the tourism industry is developing rapidly. Thus, it is unsurprising that the number of foreigners who want to buy real estate in Montenegro, a house, an apartment, or any other real estate, is growing yearly. Citizens of European countries are no exception; this country attracts them more and more to invest their funds in real estate of any kind, type, and class.
When buying real estate in Montenegro, you should follow several rules to avoid any unpleasant misunderstandings in the future. We will try to present all these rules in the most concise, spacious, and accessible form. So let's get started.
The most important thing
Before buying, collect as complete and detailed information about the seller of the object you intend to purchase as possible. It would help if you also learned more about the agency and the services most suitable for you when choosing. Naturally, you should choose the most famous real estate agency, and if there is such an opportunity, then be sure to read the reviews of persons who have already dealt with the chosen office. But it is better to do this not on the Internet but with direct contact because the company's agents can write reviews online.
Ensure purchase success
To fully guarantee the success of a real estate acquisition transaction, it is strongly recommended to enlist the support of an experienced and honest lawyer who, among other things, has all the licenses and permits necessary to conduct legal practice.
Before the start of the transaction, it is necessary to discuss and fix in writing the amount of all fees - both to the agency and to the lawyer, because in Montenegro, unlike some other European countries, the services of a lawyer and agency are paid not by the seller of the property, but by the buyer. In Montenegro, the usual agency fees are about 5% of the contract amount, and a lawyer's fees are 1%.
Suppose you do not speak the Montenegrin language sufficiently. In that case, it is necessary to require a lawyer to draw up a contract in a language you understand, always be aware of all its subtleties, and be able to make changes if necessary.
Object status
Ensure that your lawyer establishes the status of the property being purchased, the accuracy of the paperwork, and the absence of any debt on it. However, if you completely trust your lawyer, then you do not need to worry about this but still keep this in mind - in particular, if you have any doubts about the correctness of the paperwork, then it is best to postpone the transaction for a while until precise clarification of the necessary circumstances.
Real estate registration
One of the essential components of the transaction is the correct registration of the purchased property with the Department of Registration of Private Real Estate in Montenegro. As for the tax on the purchase of real estate - in Montenegro, it is the lowest in Europe and is only 2%. If you are an investor, you must make a security deposit of 10% of the transaction amount. The best way to make a deposit is to a bank located in the region where you intend to buy the property and where you will invest. The rest of your investment should be spent within the timeframe specified in the contract, usually one month. After this period and without payment, the deposit you made may disappear.
Repairs
Suppose you buy real estate in need of repair. In that case, it is advisable to send a request for the provision of the relevant services not to one but to several different construction companies at once and then choose the one that will respond most promptly and offer the best prices. When signing the finishing part of the contract with the selected company, you must make sure that VAT is included in the final amount of the cost of the work.
Selection factors
Never buy property in an inadequate location. The home's location is the most crucial factor in property selection. First, you should find out where the most popular recreation areas and places are located in Montenegro and how conveniently the infrastructure facilities are located. It is also important to inquire about what plans for construction in the future exist in this area. You should also consider such a "trifle" as the seasonal characteristics of the region - this can be important if you rent out the acquired housing in the future. Despite the growing tourism industry, many coastal cities in Montenegro cannot provide a sufficiently large influx of tourists in winter.
Cautions
You should not invest all your funds in real estate. There can always be additional costs that are very difficult to foresee, and without free money, this can easily lead to unnecessary problems.
In no case do not get in touch with casual acquaintances, for example, with "street realtors", which in Montenegro have recently appeared very, very much. Typically, using the services of these covert or overt scammers is disappointing at best. Also, never try to sign any documents without the direct presence of your lawyer.
Another big mistake a buyer unfamiliar with the peculiarities of purchasing real estate in Montenegro can make is underestimating the cost of repairing an object that interests her. Although all repair work in Montenegro is much cheaper than in any other European country, unforeseen repairs can still be so significant that any deal, even the most profitable initially, will turn into sheer ruin.
About neighbors
And "for a snack": be sure to make friends with your new neighbours. Montenegrins are usually very open and hospitable, and by having good relations with them, you can learn many valuable things about Montenegro from what you never know from advertising brochures. Besides, friendly neighbours can always keep an eye on your home.