The Montenegrin Parliament has passed the Law on Mediation in Real Estate Transactions, marking a significant milestone for the country’s real estate sector. The law introduces mandatory licensing and a professional exam for real estate agents, establishes a registry of authorized agencies, and regulates advertising practices.
According to Nataša Grdinić, Chair of the Real Estate Trade Group at the Chamber of Commerce and a member of the Association of Real Estate Agencies, this legal framework addresses longstanding issues caused by an unregulated market, including uncertainty for buyers, sellers, and agents, and hinders sector development. The new law ensures legal security, sets clear business standards, protects all parties involved, and reduces the grey market.
Key provisions include mandatory licensing and professional exams organized by the Chamber of Commerce, minimum standards for agent expertise and office conditions, clear obligations toward clients, compulsory professional liability insurance, and transparent business practices. The law also requires general business terms and ongoing education for all employees in the sector, along with the creation of a public electronic registry of licensed agents to boost trust and transparency.
The law protects buyers through insurance coverage, clear service definitions, rights to refunds in specific cases, transparent cost disclosure, and mandatory document verification by licensed agents. Sellers benefit from guaranteed professional service, data protection, and clearly defined contracts. Agents gain protection from unfair competition through licensing, improved credibility, and secured fees.
The absence of previous regulation allowed many agencies to operate in the grey economy, causing losses to buyers, legitimate agents, and the state through unpaid taxes. The sector represents a significant and growing part of Montenegro’s economy, with foreign investors purchasing real estate worth around 2 billion euros between 2019 and early 2025.
Now that the law is in place, implementing secondary regulations within nine months and establishing the licensing system through the Chamber of Commerce are the next steps. Existing agents will have 12 months to comply. The Ministry of Economic Development will supervise compliance, while market inspectors will enforce regulations and penalties.
Additionally, continuous professional education, digitalization of registers and contracts, stronger international cooperation, and the development of regional leadership standards are priorities to position Montenegro as a top real estate investment destination with high protection standards for all market participants.
