Montenegro’s real estate market generates hundreds of millions of euros annually but has operated for years without clear regulations or oversight. This could soon change with the proposed Law on Mediation in Real Estate Transactions and Leasing, which is currently in parliamentary procedure. The initiative, led by the Chamber of Commerce’s Real Estate Trade Group and the Association of Real Estate Agencies, has been recognized by the Ministry of Economic Development as essential for market regulation, consumer protection, and combating unfair competition.
The draft law aims to regulate the mediation aspect of the real estate market, not property ownership or pricing. Property owners will still be free to sell independently or through agencies. The law is based on existing regulations and aligned with EU directives, as Montenegro is a candidate for EU membership.
The market remains largely unregulated, with illegal intermediaries, unregistered websites, and social media groups conducting unauthorized real estate transactions. This lack of regulation costs the state millions in revenue and leaves buyers and sellers vulnerable to fraud. There is currently no official register of agents, nor licensing or identification requirements, making it difficult to distinguish between legal and illegal actors.
The new law introduces a public register of agents, mandatory professional exams, liability insurance, escrow accounts for agencies, required office space, mediation contracts, transaction records, and restrictions on advertising without a license number.
The goal is to regulate the market, enhance consumer protection, reduce the grey economy, and improve service quality and competitiveness. If adopted, the law is expected to bring much-needed order to Montenegro’s real estate sector.
