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.
Montenegro is dominated by a mild Mediterranean climate and therefore the tourism industry is developing very rapidly in the country. Therefore it is not at all surprising that the number of foreigners who want to buy real estate in Montenegro: a house, an apartment or any other real estate is growing every year. Citizens of European countries are no exception, who are more and more attracted by this country to invest their funds in real estate of any kind, type and class.
When buying real estate in Montenegro you should follow a number of rules in order to avoid any unpleasant misunderstandings in the future. We will try to present all these rules in the most concise and capacious and most accessible form. So let's get started.
The most important thing
Before buying, be sure to try to collect as complete as possible, more detailed information about the seller of the object that you intend to purchase. You also need to learn more about the agency, the services of which are 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 themselves can write reviews on the Internet.
Ensure purchase success
In order 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%.
If you do not speak the Montenegrin language sufficiently, then it is necessary to require a lawyer to draw up a contract in a language you understand, in order to always be aware of all its subtleties and to be able to make your own changes if necessary.
Be sure to make sure 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 important 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 all of Europe and is only 2%. If you are an investor, then you will be required to 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 in the absence of payment, the deposit you made may disappear.
In the event that you buy real estate in need of repair, 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 chosen company, you must make sure that VAT is included in the final amount of the cost of work.
Never buy property in an inadequate location. The location of the home is practically the most important factor in the property selection process. First you should find out where the most popular recreation areas and places are located in Montenegro, 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 take into account such a "trifle" as the seasonal characteristics of the area - this can be important if in the future you are going to rent out the acquired housing. Despite the growing tourism industry, many coastal cities in Montenegro cannot provide a sufficiently large influx of tourists in winter.
You should not invest all your funds in real estate. There can always be additional costs that are very difficult to foresee and in the absence of free money, this can easily lead to unnecessary problems.
In no case do not get in touch with any kind of 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 that a buyer who is not familiar with the peculiarities of purchasing real estate in Montenegro can make is underestimating the cost of repairing an object that interests you. Although all repair work in Montenegro is much cheaper than in any other European country, the cost of unforeseen repairs can still be so significant that any deal, even the most profitable initially, will turn into sheer ruin.
And "for a snack": be sure to make friends with your new neighbours. Montenegrins are usually very open and hospitable and having good relations with them, you can learn a lot of useful things about Montenegro from what you never learn from advertising brochures and besides, friendly neighbours can always keep an eye on your home.