Buying Property In Montenegro

Buying Property In Montenegro



Buying property in​ Montenegro
As with purchasing a​ property in​ any country, you must make yourself aware of​ the formalities and peculiarities of​ the foreign market.
Property prices.
Without an​ official price index, many properties are advertised with a​ price that is​ determined by what the vender wants rather than by a​ market value .​
If you find a​ property in​ a​ particularly popular area (or in​ an​ area like an​ Old Town where they can be no more development), it​ is​ most likely that market has been determined by the price paid for a​ similar property .​
If you are looking at​ a​ renovation project in​ an​ area away from the main towns, then the price you pay will most likely be a​ result of​ your negotiation skills.
Legal advice.
Getting a​ local lawyer is​ imperative .​
Many properties have multiple owners (i.e .​
owned by whole families) and all parties must be in​ agreement of​ the sale .​
When the lawyer has this in​ writing, the title of​ the property can be yours.
Paying for your property.
All purchases are cash purchases .​
The vendor will require a​ cash deposit of​ at​ least 10% of​ the agreed price and you will need to​ pay the rest in​ 30 days .​
If you cannot complete the deal, you lose the deposit .​
If the vendor pulls out of​ the deal, they will have to​ pay back the deposit plus the same again .​
Therefore, if​ you put down €5000 and the vender defaults, you will receive a​ total of​ €10000.
Fees.
In Montenegro, it​ is​ the buyer that pays the estate agent fees.
- Property tax: 2% (on the sale price, payable to​ the government.)
- Agent fees: 4% (approx.)
- Legal fees: €750 (approx.)
Example: Agreed sale price = €45000 + €900 tax + €1800 agent fees + €750 legal fees = €48450
Transferring money.
It is​ not necessary to​ carry the whole amount of​ money to​ Montenegro as​ cash (although you may wish to​ do so for the deposit) .​
You can transfer the outstanding amount electronically to​ a​ bank in​ Montenegro and withdraw the money when you are there .​
Some banks don't have any method of​ direct transfer to​ Montenegro, so you may have to​ use a​ currency exchange to​ do this for you (they quite often get better exchange rates too for those in​ non Euro currency countries) .​
From there the money can be transferred to​ a​ Montenegrin bank (Opportunity Bank in​ Kotor Old Town only charges a​ €15 handling fee .​
Some banks charge a​ percentage).
Once you have decided on your property (or properties), seek the proper legal advice and look forward to​ your new holiday home, capital growth or​ rental income.
Please note: this article does not constitute legal advice and any costs incurred & potential future gains may be different in​ each instance.




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