Montenegro has recently formed an inspection team to curb illegal real estate brokerage, expanding coordination with tax, market and police authorities. The measures are intended to address undeclared activity before amendments providing fines of up to 20,000 euros take effect in summer 2027.
Milutin Butorović, head of the Coordination Team for Inspection Supervision, said the team had established cooperation with the Tax Inspectorate and Market Inspectorate. It has also agreed to work with the Police Directorate, headed by Lazar Šćepanović, and will involve economic crime in efforts against illegal brokerage.
Enforcement before new penalties
The amendments to the Law on Brokerage in the Sale and Lease of Real Estate, which provide fines of up to 20,000 euros for illegal work, will apply from summer 2027. The state intends to act before then under other legislation, Butorović said.
The Law on Inspection Supervision allows inspectors to enter homes and business premises with approval from the competent court when there are grounds for suspicion. Under the Criminal Code, illegal engagement in an activity is punishable by up to one year in prison.
Possible measures include a ban on carrying out the activity and temporary seizure of benefits obtained unlawfully, according to Butorović. Inspectors can also report suspected criminal offences to the competent authority, request the start of misdemeanour proceedings or issue a misdemeanour order.
Butorović said the team had agreed with the Police Directorate on cooperation in such cases. The inspection effort is aimed at a virtual grey zone involving websites and apps, where hundreds of thousands of euros in undeclared income are generated, according to the information provided by authorities.
Informal agents and consumer risks
Stefan Mišković, a representative of the Association of Real Estate Agencies, said only 277 companies active in the real estate agency segment regularly submit financial statements. He estimated that Montenegro currently has more than 1,000 different agency profiles, including Telegram groups for Russians and Ukrainians with more than 20,000 members.
The property market has been flooded with illegal agents, particularly since the construction boom began in 2022. The association welcomed the authorities’ intention to tackle the grey market, saying that reducing it would make it easier for legitimate agencies to operate and help prevent abuses affecting people who deal with illegal agents.
Mišković identified a switched-off phone number and the absence of an address or office as warning signs. Illegal agents may disappear after causing damage, while a client cannot sign a brokerage agreement with an agent that has no legal entity.
Mišković and Butorović urged people to exercise caution when buying, selling or renting an apartment to avoid having to seek justice in court.
