Don't fall into these common traps when buying property in Montenegro. Learn from others' expensive mistakes.
After helping hundreds of buyers find property in Montenegro, we've seen the same mistakes repeated. Here's how to avoid them.
The problem: Trying to save money by skipping legal fees.
What happens: Title issues discovered after purchase, unexpected claims on property, or invalid contracts.
The fix: Always use an independent lawyer (not the agent's or seller's lawyer). Budget 1-2% for legal fees - it's essential insurance.
The problem: Believing verbal promises from sellers or agents.
What happens: "Included furniture" disappears, promised renovations never happen, terms change at final contract.
The fix: Get everything in writing. If it's not in the contract, it doesn't exist.
The problem: Rushing to secure a "good deal" without proper checks.
What happens: Discovering unpaid utility bills, building without permits, or multiple owners with conflicting claims.
The fix: Your lawyer should verify title, check for encumbrances, confirm planning permission, and ensure all bills are paid.
The problem: Only budgeting for the purchase price.
What happens: Shock when 3% transfer tax, legal fees, notary costs, and registration add up to 5%+ on top.
The fix: Budget an additional 5% of purchase price for transaction costs.
The problem: Falling in love with a property in summer.
What happens: Discovering the "quiet village" is dead in winter, or the "sunny apartment" gets no light October-March.
The fix: If possible, visit in both summer and off-season. At minimum, ask locals about year-round conditions.
The problem: Being seduced by views and finishes.
What happens: Discovering poor insulation, damp problems, inadequate heating, or structural issues.
The fix: Consider a building survey, especially for older properties. Check for signs of damp, test heating, and ask about energy efficiency.
The problem: Only considering purchase price when budgeting.
What happens: Surprise at high utility bills, building maintenance fees, or property management costs.
The fix: Calculate annual running costs: - Property tax: 0.1-0.25% of value - Building fees: €1-3/sqm monthly - Utilities: €100-200/month - Insurance: €200-500/year
The problem: Assuming you can rent your property on Airbnb.
What happens: Discovering you need permits, categorisation, or face restrictions in your building.
The fix: Before buying for rental, verify: - Building rules on short-term rental - Permit requirements - Local regulations - Tax obligations (9% on rental income)
The problem: Assuming you can easily sell if plans change.
What happens: Discovering liquidity is lower than expected, especially for unusual properties.
The fix: Buy property with broad appeal: - Good location - Standard layout - Reasonable price point - Near amenities
The problem: Buying purely for personal preference.
What happens: Difficulty selling due to unusual layout, remote location, or niche features.
The fix: Even for personal use, consider: - Would other buyers want this? - Is the location accessible? - Are the features universally appealing? - Is the price fair for the area?
The problem: Falling for listings that seem too good to be true.
What happens: Wasting time on properties that don't exist or were sold months ago.
The fix: Use DOMA - we verify all listings are real and available. If it's listed, it's available.
✓ Independent lawyer engaged ✓ All agreements in writing ✓ Due diligence completed ✓ Total costs calculated ✓ Off-season considerations understood ✓ Building quality assessed ✓ Running costs budgeted ✓ Rental regulations checked ✓ Exit strategy considered ✓ Resale value evaluated
These mistakes are all avoidable with proper preparation and professional help. Montenegro offers excellent property opportunities - just make sure you approach your purchase with eyes open.
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