Prepared by: G.E - Montenegro

After the first wave of the Covid-19 epidemic, the real estate market in Montenegro experienced an interesting trend: the demands for houses and land plots for home construction doubled! Before Covid-19, 95% of clients looking for residential properties were interested in apartments, while only 5% were looking for a house or land to build a home. However, after the market regained in May, inquiries were 50/50.

Here, we'll walk you through the most basic steps in the process of buying land and building a home.

Note: There are no legal restrictions on foreigners buying real estate in Montenegro except for those regulated by the Property Rights Act, which introduced few restrictions, among them those for foreigners to acquire agricultural land (but if the subject of the contract is real estate on farmland under 5000 square meters you can buy). However, even in the case of agricultural land, you can form a company and buy the land through the company. Later, with the signing of the Stability and Association Agreement with the European Union, Montenegro granted national treatment to its citizens owning real estate on its territory.

The first step: find the land

If you do not have experience in buying property in Montenegro, having a reliable sales consultant is very important. He/she has to advise you on blueprints and maps in place, to check if the title deeds are in order, to check the record if the land is free of any strings, etc... You have to realize that buying land is a bit more complicated than buying an apartment . Which requires more caution as there is no possibility of rounding corners in the future. You have to take your time and be involved in the process. Thus, once you know the appropriate city/province/neighbourhood, your agent should check if the charts and maps in that area are valid.

Step Two: Found the plot? - What Now?

Have you found a perfect land? Congratulations! Now, you need the right documentation - a clean title deed, valid Technical Terms (UTC), and even a geographic scale. It's time to bring in heavy artillery too - to engage a lawyer to review the documents again (not because you don't trust your agent, but because you need a professional to provide you with your formal due diligence. You should also consult an architect for his opinion of the land - not if he likes the view, Rather, how it would fit into your planned home, and tell you if this land is good for that home.In order to do this, the architect will ask for a land scale analysis and UT requirements.

Step Three: Buy the Land

Once you are sure that you have found the right property and have received all the assurances, you can ask your agent to make an appointment with a notary. The process is simple, and everything will be done in a few hours. You will pay a notary fee and a transfer fee of 3%. In a few weeks your name will be registered as the owner of the land.

Step Four: Design

Once you have the land and a valid Technical Conditions (UTC) document, you can start working on the design with the architect. If you plan to do something in culturally sensitive areas or under UNESCO protection, make sure you have someone with experience in this area, and make sure they have done similar projects in the past. There are a lot of studios with people educated abroad who speak English, so you will not have any problems communicating with the architects. With the new law on local planning, most administrative duties are placed on the shoulders of companies that design and review technical documents. This means that you will not be in contact with local authorities, various administration offices, etc. This also means, that you need to choose those who can easily move around the office and are fully aware of local and national regulations.