When it comes to real estate, Montenegro is at the top of the list of desirable countries to buy for both foreign and domestic clients. There is a noticeable trend of growth in demand for apartments for rent in Nikšić, and that's why we decided to create a guide for our clients.
We cooperate with both apartment owners buyers and tenants. We represent both sides and in this text, we will present to you the most important items that you should check before cooperating with any real estate agency. From our experience, we have singled out several items that you should pay attention to.
1. Is the real estate agency registered to carry out that activity?
Through conversations with our clients, we have concluded that they are often contacted by people offering to help them sell or rent out real estate, without being employed by a real estate agency. This currently represents a big challenge because the field of real estate in Montenegro is not sufficiently regulated. That's why we advise that before you decide to entrust someone with mediation in the sale or lease of your property, check whether they have a registered company for this. Ask for
the PIB or registration number, this is the basic information you need to check if the company exists. On the website of the Central Register of Business Entities, you can enter this data and find everything about the company that interests you. In this way, you will be sure whether the company is registered to perform that activity. 6831 is the code under which real estate agencies operate.
2. Who can carry out mediation activities in traffic and rental of real estate?
Businesses of intermediation in traffic and rental of real estate in the whole world can be performed exclusively by licensed agents who are employed in companies that are registered in the register of intermediaries. We will cite three examples of good practice in the regulated field of real estate: Serbia, Slovenia, and Sweden. Mediation in the sale and lease of real estate in all three states is regulated by a separate law. The Law on Intermediation in Traffic and Leasing of Real Estate,
together with several other laws that regulate obligations and taxes, is the basis for performing this activity.
In Serbia, the field of real estate has been regulated since 2013, so for ten years there has been a Law on Intermediation in Traffic and Leasing of Real Estate. Real estate agencies as legal entities are registered in the Registrar of Intermediaries, and natural persons employed as agents are required to have a license. For an agent to perform this job according to the law, it is necessary to have passed the professional exam that is taken at the Ministry of Internal and Foreign Trade, and
previously the candidate's knowledge was checked at the Ministry of Trade, Tourism and Telecommunications. The director of our agency, Marija Božić, is a licensed real estate brokerage and rental agent in the Republic of Serbia, with the license issued by the competent ministry.
In Slovenia, the field of real estate is regulated in a similar way as in Serbia, with a note that with every change in the law, knowledge needs to be updated. Most often, this is done every five years or as needed if the change occurs earlier. Everyone interested in performing the work of an intermediary in traffic and leasing real estate (agents) must meet the legal requirements. One of the most important conditions is that the person has not been punished and that no proceedings have been
conducted against him before the competent authorities. For a person to take the exam, it is necessary to have at least a higher professional education, and in some cases, an exception can be made and a recognized secondary school. The agent must be registered in the register of intermediaries. In Slovenia, there are currently several institutions that deal with the training of interested persons to take the professional exam, and the most famous are:
- GZS, BUSINESS TRAINING CENTER
- GEA COLLEGE d.d.
In Sweden, the real estate sector is complex and business is conducted at a high and responsible level. Unlike Serbia and Slovenia, which represent examples of good practice in our region, in Sweden it is necessary to have completed studies in the field of real estate. It is possible to meet the requirements for performing activities in other ways, but education is the most reliable way. All agents as well as agencies must be registered with the Fastighetsmäklarinspektionen (FMI).
This institution is also responsible for supervising the work of agencies and agents and can sanction anyone who does not operate by the law. For agents working in one of the countries of the European Union or Switzerland, it is possible to have foreign qualifications recognized through formal education or experience gained in the field of real estate. Agents in Sweden as well as their companies have a high degree of responsibility towards their clients and because of this, they are sure that
the whole process will go smoothly.
3. What does the process of cooperation with the agency look like?
If you have already checked the agency you want to work with and found that it is registered, there is one more important step to take. Ask the agent to explain what the cooperation process would look like. At the REGINA REAL ESTATE agency, all clients receive a free 15-minute consultation with our expert team. Their goal is to bring you closer to our way of doing business and for you and us to determine whether we are suitable for cooperation. Our general terms of business are publicly
available on the website www.reginarealestate.me and you can read them and familiarize yourself in detail with the rules and procedures that we use in our work. The entire process is standardized and automated, which makes work easier for both our clients and us. We believe that trust is a two-way street and that's why we allow you to talk with our agents before starting cooperation.
4. What legal protection do you get?
Since the establishment of the agency, we have been advocating for the regulation of the real estate sector, and there are several reasons for this. The most important thing is that the zone of the gray economy would be reduced, there would be a greater flow of money into the state coffers, and individuals and companies that do not operate according to the law would be eliminated from the market. To protect our clients from all possible unforeseen circumstances, a well-known law firm from
Podgorica has been with us from day one. Their legal team is at the service of all clients who start cooperating with us, and these are costs that we, as an agency, bear in full. That's why we advise you to do business exclusively with registered real estate agencies that have a serious and responsible legal team because that's the only way you can be sure that the risk of every kind is minimized.
5. What costs can you expect?
Our clients have their reasons for trusting us and continue to do so. One of the main ones is that we are the first and currently the only agency in Montenegro that has a personalized approach. A certain number of people still avoid cooperation with agencies because they are not sufficiently familiar with their work or the costs that arise from it. In our case, all the services we offer to our clients are free with a signed Mediation Agreement (in sales or rental). We also have a marked price
list on our website for those who only need a specific service. The intermediary fee is 3-5% per realization (of the agreed purchase price), and we also give a discount to our regular clients and business partners. For mediation in the lease, an amount of one monthly rent is charged per realization, with the possibility of payment in two installments. We always insist that the tenant pays one month's rent and a deposit when signing the contract so that the owners have a guarantee that
everything will be as agreed. The rental contract is written in Montenegrin and is a bilingual version (for foreign citizens). We always do the lease annex for free. We recommend that everything you agree on should be in the form of a Mediation Agreement because this is the only way you have a legal basis and proof of cooperation with the agency.
What protects our clients is well-prepared documentation, records that we keep as intermediaries, and a responsible approach to business. REGINA REAL ESTATE is a real estate agency in Nikšić that is always at your disposal, whether it is advice, real estate valuation, or mediation in transactions and leases. Our team of local experts with international experience is at your service if you are selling, buying, or renting real estate in the territory of Montenegro.
*Photo by Maria Ziegler on Unsplash
