New Law for Real Estate Agencies in Montenegro: What Does It Bring to Buyers, Sellers, and Tenants?

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

For this reason, Montenegro has adopted a new Law on Mediation in the Sale and Lease of Real Estate, which introduces a clearer legal framework for the operation of real estate agencies and mediators. The Government of Montenegro finalized the bill at the end of 2024, explaining that this regulation brings more order to the mediation sector, improves service quality, and strengthens the protection of buyers and sellers.

Why Is This Law Important?

Until now, Montenegro's real estate market often operated without sufficiently precisely defined rules for mediation. This created room for unprofessional behavior, unclear commissions, operation without adequate responsibility, and insufficient client protection.

The new law aims to make the market more organized, safer, and more transparent. This is especially important in the purchase, sale, or lease of real estate, as these involve large 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 mediation activities. According to available information on the legal framework, the goal is for mediation to be conducted professionally by individuals and agencies that meet the prescribed conditions, including professional competence and responsibility in work. Media outlets emphasized during the parliamentary procedure that agents will need 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 process.

Written Mediation Agreement

One of the most important changes concerns the obligation of a clear contractual relationship between the agency and the client. A written mediation agreement ensures that rights, obligations, conditions of cooperation, commission amount, and the manner of service provision 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, sale or lease conditions, commission, documentation, and all important steps in the process.

For the real estate market, this is a major step forward, as 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, liens, urban conditions, permits, documentation, and other important elements. The new law should contribute to mediators working more responsibly and clients being better protected.

For sellers, this means more professional property presentation, clearer contractual relationships, and a more serious approach to the market. For buyers, it means greater security when making decisions 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 differentiate themselves from unprofessional market participants.

It is expected that the law will contribute to reducing the gray zone, better market control, and a higher level of trust between clients and agencies. Some expert sources note that the law's objective is also to combat the shadow 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 property, a professional agency should be a partner who guides you through every step — from the initial assessment and property presentation, through negotiations, documentation, and completion of the process.

At LV Real Estate, we pay special attention to:

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

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

Conclusion

The new Law on Mediation in the Sale and Lease of Real Estate represents an important step toward a more organized 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.