Real estate of Montenegro
The first thing that should be done is opening a Montenegrin bank account. If you have your passport, it will take you ten minutes in the bank. The Montenegrin bank-account is necessary to buy real estate in Montenegro.
As soon as the object is chosen, you sign preliminary contract, where the type, cost, conditions of payment, responsibility of both sides are registered (if the object is under construction – the date when it will be commissioned).
While the contract is being signed the seller should show main document: justus titulus (document where interest in land is registered) and modus aquirendi, which is a document from a local cadastre. If it is necessary the seller should provide the document where ingeritance is recorded, building permit, if an object already constructed – all the checks for electricity, water, TV, telephone), the document claiming that there are no debts concerning the object in question.
If an object is still under the construction, then if it is necessary the seller should provide the document on purchase of land, building permit, package of the documents on the installation of water, electricity, sewerage; documents pointing to the quality of the building, quality of materials in particular. As the contract is being signed, the buyer should show his international passport.
After the preliminary contract is signed, the buyer is to pay the reserve sum which is 10% of the price of the object. As soon as the seller gets mortgage he is to provide a receipt. The main contract can be signed only within Montenegro, in the Court - official state organ that has notarial functions. This contract is to describe the real estate property, its area, used equipment and materials, conditions of payment, fines in case the payment is late or the object is commissioned later than agreed. Then the local municipality defines the value of the real estate. This sum can’t be higher than one on the contract. Basing on this sum the buyer pays 3% tax on real estate transition. Then the buyer transfers the whole sum to the seller’s bank account and gets the receipt of it. Only then the seller modifies the data in the cadastre documents.
The buyer becomes a proprietor from the moment when the contract is signed. Legally only when the name is changed in the cadastre papers.
Purchase of land was earlier prohibited, now when ban is removed there are some papers necessary to get everything in order: building permit, papers pointing to that the land is not included in moratorium, national park, reserve (green belt), permit of construction a road to this very piece of land, confirmation of having sewerage, water, electricity.
It is better to care about the whole package of the documents before the contract is signed. As a rule it is the job of a special person from a realtor company.