Obtain property excerpt from Agency for Real Estate
Agency: Agency for Real Estate
The buyer goes to the local branch of the Agency for Real Estate to obtain an excerpt on the property, proving the seller’s ownership.
Time and cost: 1 day, EUR 5 (EUR 2 Republic Administrative Fee + EUR 3 Agency for Real Estate)
Notary checks who is authorized to sign on behalf of each company
Agency: Central Registry of Business Entities of the Tax Administration
Public notaries verify who is authorized to sign the documents on behalf of the company, in accordance with the data contained in the Certificate. The certificate is obtained from the Central Registry of Business Entities of Montenegro or via data available on official website of the same Registry: www.crps.me
Time and cost: 1 day, paid in Procedure 3
Lawyer or notary drafts sale-purchase agreement
Agency: Lawyer or Notary offices
It is standard practice for parties to hire a lawyer or a notary to draft the sale-purchase agreement. A new standardized form for the sale-purchase agreement is available online at www.uzn.me and ww.geoportaluzn.me. Notary on behalf of parties submits documents for registration of property to the Real Estate Agency (Cadastres on local levels).
Time and cost: 1 day, EUR 530
According to the “Tariff on compensation for work and cost of notary services” published in Official Gazette of Montenegro, no. 006/12 of 27.01.2012, the fees for notary services are per the following fee schedule:
- Property value from 0 EUR to 5,000.00 EUR – fee is 70 EUR
- From 5001.00 EUR to 20,000.00 EUR – fee is 120 EUR
- From 20,001.00 EUR to 40,000.00 – fee is 170 EUR
- From 40001.00 EUR to 60000.00 – fee is 250 EUR
- From 60,001.00 EUR to 80,000.00 – fee is 300 EUR
- From 80001.00 EUR to 120000.00 – fee is 350 EUR
If the value of the property is above EUR 120,000, the fee is EUR 350 plus EUR 10 for each EUR 15,000 of the value above EUR 120,000, with a cap at EUR 5,000.
Tax Authorities assess the amount of transfer tax to be paid by the buyer
Agency: Tax Administration Branch Office (Uprava prihoda Podgorica)
The Municipal (basic) court delivers the sales agreement with the authenticated signatures to the tax administration. During this period the tax authorities will compare their valuation of the property with the sale-purchase agreement price. They will assess how much the buyer should pay as transfer tax (3% of the property value) and assign a bank at which to pay. The buyer then goes to the tax administration office to get a copy of the agreement with the stamp (clearance).
Time and cost: 20 days, no charge
Request inscription of the new owner at the Agency for Real Estate
Agency: Agency for Real Estate
Parties fill in a standard form or make a simple written request at the local branch of the Agency for Real Estate in order for the name on the property to be changed to that of the buyer. The Resolution on change of property ownership is made within 8 working days. The Head of the Unit signs on the Resolution and it is delivered to the parties. Once the resolution is made, parties have the right to appeal against the resolution within 8 days at the Ministry of Finance (cost is 5 Euros). If there are no complaints within the deadline of 8 working days, then a Request for issuance of cadastre excerpt is submitted to the Real Estate Agency. This costs 8 Euros and is issued on the same day. Article 122, paragraph 2 of the Law on State Survey and Real Estate Cadastre provides a deadline of 15 days for the Real Estate Administration to decide on the request for registration of respective rights in the Cadastre.
Time and cost: 46 days, EUR 15 (EUR 2 Fee for request + EUR 10 Real Estate Agency + EUR 3 Administrative fee)
Buyer pays transfer tax at a commercial bank
Agency: Commercial Bank
The buyer will take the amount assessed by the tax authorities to pay as transfer tax, to deposit at a bank assigned by the tax authorities in their account.
Time and cost: 1 day, EUR 11,269.68 (Transfer tax 3% of property a value)
