Property Documentation: What You Need to Buy

Understanding property documentation in Montenegro is crucial for a smooth purchase. Here's your guide to every document you'll encounter.

Essential Buyer Documents

PIB (Tax Number) - Obtained from local tax office - Required for property purchase - Takes 1-3 days - Bring passport

Passport - Valid for 6+ months - Original required for notary - Copies for various filings

Proof of Funds - Bank statement - Mortgage approval - Required for large transactions

Property Title Documents

List Nepokretnosti (Title Deed) The most important document - proves ownership and shows any encumbrances.

Contains: - Property location and size - Current owner details - Any mortgages or liens - Historical ownership

Where to get: Real Estate Cadastre (Katastar)

Izvod iz Katastra (Cadastre Extract) Official map showing property boundaries and position.

Shows: - Exact plot boundaries - Building footprint - Neighbouring properties - Access routes

Building Documentation

Građevinska Dozvola (Building Permit) Proves the building was legally constructed.

Check: - All buildings on plot are permitted - Extensions were approved - Matches actual construction

Upotrebna Dozvola (Occupancy Permit) Confirms building meets safety standards and can be legally occupied.

Why important: - Required for legal occupation - Needed for utility connections - Affects property value - May impact insurance

Tax and Transfer Documents

Porez na Promet (Transfer Tax Declaration) Filed with tax authority to calculate transfer tax at progressive rates:

Example for €400,000 property: - First €150,000 at 3% = €4,500 - Remaining €250,000 at 5% = €12,500 - Total: €17,000 (4.25% effective rate)

Potvrda o Plaćenom Porezu (Tax Payment Certificate) Proof that transfer tax has been paid. Required for registration.

Contract Documents

Predugovor (Pre-Contract) Preliminary agreement setting out: - Price and payment terms - Timeline to completion - Conditions (due diligence, financing) - Deposit amount (usually 10%)

Ugovor o Kupoprodaji (Sales Contract) Final contract signed before notary.

Must include: - Full details of both parties - Complete property description - Agreed price - Payment arrangements - Handover date - Warranties

Overa (Notarisation) Both contracts require notary certification to be legally valid.

Utility Documents

Request from seller:

• Recent electricity bills
• Water bills
• Any community charges
• Confirmation of no outstanding debts

Due Diligence Checklist

Title: - [ ] List nepokretnosti obtained - [ ] No encumbrances or liens - [ ] Seller is legal owner - [ ] Boundaries match site

Building: - [ ] Building permit exists - [ ] Occupancy permit valid - [ ] All structures permitted - [ ] No illegal extensions

Legal: - [ ] No ongoing disputes - [ ] No inheritance claims - [ ] Community fees paid - [ ] Tax payment arranged

Financial: - [ ] Price verified against market - [ ] Transaction costs budgeted - [ ] Transfer tax calculated - [ ] Payment method arranged

Document Translation

All documents are in Montenegrin. Options:

• Certified translator (recommended)
• Your lawyer's summary
• Agent assistance

Important: Key documents should be professionally translated.

The Registration Process

After contract signature:

1. Notary submits to Cadastre
2. Transfer tax paid
3. Registration fee paid
4. New title issued
5. You receive List Nepokretnosti in your name

Timeline: 2-4 weeks typically

Common Issues

Missing permits Some older buildings lack full documentation. Options: - Legalisation process - Price reduction - Walk away

Unclear boundaries May require surveyor to resolve disputes with neighbours.

Inheritance complications Multiple owners from inheritance can complicate sales. Ensure all owners consent.

Red Flags

⚠️ Seller can't provide title deed ⚠️ No building permit for structures ⚠️ Disputed boundaries ⚠️ Outstanding mortgages ⚠️ Pending court cases

Getting Copies

Cadastre Office (Katastar) - Title deeds - Boundary plans - Property history

Municipality - Building permits - Urban planning info

Tax Office - Tax clearance certificates - PIB documents

Always verify documents independently through official sources, not just copies provided by the seller.