For years largely unregulated, Montenegro’s real estate market now has clear rules with the introduction of a new law on real estate brokerage and leasing. The law introduces licensing, mandatory contracts, professional insurance, and strict penalties for unregistered activity. The Association of Real Estate Agencies, which initiated and developed the law, emphasizes that these reforms will bring order to one of the country’s most profitable sectors, increase investor confidence, protect clients, and position Montenegro as a regional leader in real estate regulation.
Nataša Grdinić, president of the Real Estate Trade Group at the Chamber of Commerce and a member of the Association, highlights that licensing will reduce the gray market and remove unlicensed operators that harmed the sector’s reputation.
Investor confidence will increase as international investors will work with licensed professionals, while standardization through professional exams will raise service quality and improve the investment environment. The law will be implemented over the next months, including issuing sub-regulations, establishing a professional exam system, and creating a public registry. Existing agencies have 12 months to comply with the new regulations.
The law requires mandatory professional liability insurance of at least 20,000 euros per case and 60,000 euros annually, covering typical risks such as errors in documentation checks or negotiation processes.
Brokerage contracts will now be mandatory, detailing fees, obligations, timelines, and general business conditions, eliminating hidden costs and unclear agreements. The law, together with amendments to inspection oversight, aims to combat illegal activity and reduce the gray economy, with penalties up to 20,000 euros for legal entities.
The reforms create opportunities for professional growth. Agencies following the law will benefit from increased market trust and a competitive advantage, while clients gain security through transparency and licensed intermediaries.
The public electronic registry will allow citizens and investors to verify that agencies are licensed and to access key information about agents, enhancing transparency in the sector.
Citizens are advised to verify agency registration, ensure the agent has passed the professional exam, insist on a detailed brokerage contract, confirm insurance coverage, and check the agency’s reputation, physical office, and communication transparency.
