What has happened? The Ministry of Economic Development and Tourism adopted the Draft Law on Real Estate Brokerage.
Details:
- A Real Estate Broker (“Broker”) is a legal entity or entrepreneur that is registered in the public Register of Real Estate Brokers.
- One of the conditions for registration is that the broker has at least one employee with the Broker who works full-time and has passed the professional exam for performing intermediation in the sales and lease of real estate – Agent.
- The condition for taking the professional exam is that the candidate has a domicile or residence in the territory of Montenegro and at least the 4-th level of qualifications of the national qualification level, and the exam is taken in the Montenegrin language.
- The professional exam is conducted by the Chamber of Commerce and is taken before the Commission consisting of at least one member from the Association of Real Estate Brokers and two from the competent Ministry.
- A fine of up to 40 thousand euros may be imposed for work without registration in the register of brokers, and if real estate activities are carried out by a person who has not passed a professional exam, the maximum fine will be 10 thousand euros.
- The broker will also be required to have concluded a contract for professional liability insurance.
- The law introduces a prohibition on performing equivalent tasks, which means that the Agent cannot, without the consent of the Broker for whom he works, perform intermediary activities or other activities identical or similar to intermediation, nor provide services related to the work that is the subject of intermediation for himself or for another Broker. In the event that he/she violates the prohibition, the Agent is obliged to compensate the Broker for the damage or to transfer the earnings from such a transaction.
Deadlines. Montenegrin realtors are given 12 months to coordinate their work with the requirements of the new law.
What else? From the beginning of 2024, a progressive tax on real estate turnover will be introduced in Montenegro. The rate will depend on the cadastral value of the property.
Up to €150 thousand – 3% (currently this tax applies to all objects on the secondary market)
From €150 thousand to €500 thousand – fixed amount €4,500 + 5% of the value exceeding the threshold
From €500 thousand – fixed amount €22,000 + 6% of the value exceeding the threshold.
Source: CEE Legal Matters
Photo by Faruk Kaymak on Unsplash
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