New law for real estate agencies in Montenegro: What does it bring to buyers, sellers and tenants?

The real estate market in Montenegro has been experiencing strong growth in recent years, particularly in coastal municipalities, Podgorica, and tourist centers in the north. As the market has grown, there has emerged a need for clearer rules, greater transparency, and a more professional relationship between agencies, agents, and clients.

For this reason, Montenegro has adopted a new Law on Real Estate Brokerage and Leasing, which introduces a clearer legal framework for the work of real estate agencies and brokers. The draft law was approved by the Government of Montenegro at the end of 2024, with the explanation that this regulation brings more order to the brokerage sector, raises the quality of service, and strengthens the protection of buyers and sellers.

Why is this law important?

Until now, the real estate market in Montenegro has often functioned without sufficiently precisely defined rules for brokerage. This opened space for unprofessional conduct, unclear commissions, work without adequate responsibility, and insufficient protection of clients.

The new law aims to make the market more orderly, safer, and more transparent. This is especially important when it comes to buying, selling, or leasing real estate, as these involve major financial decisions and legal transactions that require a high level of trust.

Licensing of agents and market professionalization

One of the key innovations is the introduction of stricter conditions for conducting brokerage activities. According to available information about the legal framework, the goal is for brokerage to be conducted only by individuals and agencies that meet prescribed conditions, including professional qualifications and responsible conduct. Media outlets highlighted during the parliamentary procedure that agents will have to pass a professional exam in order to conduct this activity.

For clients, this means greater security. A buyer, seller, or tenant should know that they are working with an agency that operates in accordance with regulations, has clearly defined obligations, and can provide professional support throughout the entire process.

Written brokerage agreement

One of the most important changes relates to the obligation of a clear contractual relationship between the agency and the client. A written brokerage agreement helps ensure that rights, obligations, terms of cooperation, commission amounts, and service delivery methods are defined in advance.

This is significant for both sellers and buyers. A seller knows under what conditions the agency advertises and represents their property, while a buyer has a clearer picture of the agency's role and costs that may arise during the process.

Greater transparency for clients

The new legal framework encourages more transparent operations. In practice, this means that clients should receive clear information about the property, conditions of sale or lease, commission, documentation, and all important steps in the process.

For the real estate market, this is a major step forward, because transparency directly affects trust. When information is clear, the possibility of misunderstandings, hidden costs, and legal problems is reduced.

Protection of buyers and sellers

Purchasing real estate is not just a financial decision, but also a legal process. It is necessary to verify ownership, encumbrances, urban planning conditions, permits, documentation, and other important elements. The new law should contribute to brokers working more responsibly and clients being better protected.

For sellers, this means more professional presentation of the property, clearer contractual relationships, and a more serious approach to the market. For buyers, this means greater security when making a decision and better information before concluding a contract.

Impact on real estate agencies

For professional agencies, the new law represents a positive step. Agencies that already work responsibly, transparently, and in the interest of clients gain a clearer framework for operation and the opportunity to distinguish themselves from unprofessional market participants.

The law is expected to contribute to reducing the grey zone, better market control, and a higher level of trust between clients and agencies. Some expert sources note that the purpose of the law is also to combat the grey economy in the real estate sector.

What does this mean for LV Real Estate clients?

For our clients, the new law means additional security and a clearer cooperation process. Whether you are selling, buying, renting out, or leasing a property, a professional agency should be a partner that guides you through every step — from the initial appraisal and property presentation, to negotiations, documentation, and completion of the process.

At LV Real Estate, we pay special attention to:

• clear and professional presentation of properties,
• transparent communication with clients,
• verification of basic information about the property,
• quality advertising,
• protection of the interests of buyers, sellers, and tenants.

Our goal is to make the real estate transaction and leasing process safer, simpler, and more professional.

Conclusion

The new Law on Real Estate Brokerage and Leasing represents an important step toward a more orderly real estate market in Montenegro. Its essence is not only in new obligations for agencies, but in creating a safer and more transparent system for all market participants.

For buyers, sellers, and tenants, this means greater legal security, clearer information, and more professional service. For agencies that work responsibly, the law represents an opportunity to further confirm the quality of their work and client trust.

LV Real Estate continues to monitor market changes and provide clients with professional support in accordance with modern standards of operation in the real estate sector.