For years, Montenegro’s real estate market has been one of the most unregulated sectors of the economy. Many locals – as well as foreigners buying or renting property – have had unpleasant experiences: from unlicensed agents and misleading listings to unfair contracts and issues with deposit refunds. Agencies operated without oversight, commissions were charged without clear agreements, and prices varied wildly from one case to another.
However, with the adoption of a new legal framework, this chaotic era might finally be coming to an end.
Montenegro has passed the Law on Mediation in the Sale and Lease of Real Estate, aiming to bring order and professionalism to a sector that has long operated under undefined rules. Although the law was only recently adopted and is expected to be fully implemented in the coming months, here is what buyers, sellers, agents, and landlords can expect. funkcionisala po nedefinisanim pravilima. Iako je zakon tek usvojen i njegova puna primjena se očekuje
1. No More “Wild West” Agents
One of the most important changes is that every agent who wants to work in real estate mediation will now have to pass a professional exam. No exam – no license. And without a license – no legal activity. This means that only those who are truly qualified and ready to follow the rules will remain in the market.
This change will give buyers and tenants greater confidence, as they will be working with professionals who know the law, understand the market, and will not mislead them – whether out of ignorance or bad faith.
2. A Public Register of Agents – Finally, Transparencyrentnost
magine being able to check whether an agency or agent is legally licensed before even picking up the phone. That’s exactly what the new public register will enable. It will be available to everyone and will clearly show who is licensed, when the license was issued, and whether it is still valid.
This is a major step forward – both for clients and for serious professionals in the industry.
3. Mandatory Insurance and Escrow Accounts
Real estate agencies will now be required to have professional liability insurance. This means that if a mistake is made, the client won’t bear the financial consequences – the damage will be covered by insurance. This adds an extra layer of protection and peace of mind.
In addition, special escrow accounts will be introduced – where deposits and advance payments will be held during transactions. No longer will money be “kept in a drawer” by agents – it will be tracked and safeguarded. Buyers and sellers will know exactly where their money is, when it will be released, and under what conditions.
4. Clear and Binding Contracts
Forget verbal promises and handshake agreements. Under the new law, mediation contracts must be in written or electronic form, clearly defining key details – who the agent is, the commission amount, payment terms, contract duration, and mutual obligations.
This means agents will no longer be able to demand upfront payments or change the terms mid-process. Clients will know what to expect – and what happens if the deal falls through.
5. Inspections and Penalties for Those Who “Cheat the System”
This law is not just a set of recommendations – it includes serious penalties for those who break the rules. Anyone working without a license, refusing to sign contracts, failing to maintain records, or abusing their position will face fines and, in more severe cases, bans on conducting business.
The message is clear: there is no longer room in Montenegro for unaccountable, rogue agents.
6. Will Property Prices Go Up?
There has been speculation that these new requirements (licenses, insurance, exams, etc.) will increase agency costs and, in turn, property prices. However, this doesn’t have to be the case in practice. Over time, the market is expected to stabilize, and competition among licensed agents may actually improve service quality and lead to more realistic pricing.
What matters most is that buyers understand what they’re paying for – and that the service is truly worth the trust.
7. What Does This Mean for Citizens and the Market?
For Montenegrin citizens – whether buying or selling – this long-awaited reform brings more security, less stress, and clear rules of engagement.
For the market – it’s a step toward professionalism, European standards, and transparency.
For the state – an opportunity to finally reduce the shadow economy in a sector that has long operated below the radar of inspections and taxes.
Final Thoughts
Montenegro has finally taken a stand against the grey zone in real estate transactions. The new law brings order, security, and professionalism – great news for anyone looking to buy, sell, or rent a property in a fair and legal way.
It’s time for everyone to play by the rules – because only then can the market grow, and citizens regain trust in the system.
If you’re looking for expert advice, guidance, or a reliable partner in your real estate journey – our team is here to help.
