Before buying the property in foreign country, it is necessary to be informed about all relevant facts.

First of all, it is necessary to be informed about legal frame of the country, position of foreigners, tax system, possibilities for investment…

The language barrier, not knowing the laws, many times results with the problems for the majority of foreigners. Let us guide you !!!

                         IMPORTANT ASPECTS OF BUYING OFF PLAN

1. Location

2. Investors

3. Legal aspect of building

4. Buying process

5. Elements of contract in off plan property sales

1. Location

In order to make right choice regarding choosing location, it is necessary to be informed about the part of the coast you find interesting. Certain cities on the coast of Montenegro are considered more attractive than the others, so the prices of the off plan apartments as well as  the existing ones are varying depending on location . For example, Riviera of Budva  is considered the most exclusive location on the coast of Montenegro, with the highest price of square meter in off plan, as well as in already existing objects. Kotor also is not far behind Budva when we talk about exclusivity. Riviera of Herceg Novi and her part of the coast is characterized for the expansion of off plan building. There is a big number of investors and many off plan projects. When we summarize the current situation on the market, we can conclude that the biggest interest is for the Riviera of Budva and the towns in the Bay of Boka Kotorska (Kotor, Herceg Novi, Tivat).

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2. Investors

Because of the attractive coast, there is a big number of investors from abroad. The positive investment climate has attracted large number of investors from United Kingdom, Ireland, Norway, Russia...Beside investors from abroad, on the market there is small number of domestic investors.

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3. Legal aspect of building

One of the most important aspects is certainly legal moment of the building. Illegal are considered the objects which don’t have next documentation:

- location permit, building permit, approved urbanistic-technical conditions for the building etc…

Illegally built are considered also the objects whose footprints are not in accordance with the grounds approved by urbanistic-technical conditions.

If the investor starts the building of the object, which doesn’t have necessary permits and approved urbanistic-technical conditions, or doesn’t respect them, he directly endangers the position of the buyer because consequences could be next:

- Stopping the building by Municipality

- Knocking down the building by Municipality

- I mpossibility to register the property on the name of the future buyer

The buyer protects his rights:

- by checking the credibility of investor

- by insight of the accompanying documentation

- by detailed buying contract which protects his interests

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4. Buying process

Off plan process usually understands certain phases and dynamics of payment. From the other hand, dynamics of payment fallows certain steps in the building of objects and can include reversible deposit, which makes the apartment reserved and pulled from the market. Certain phases of the building are usually connected to the phases of payment. The last payment is always connected to the hand over of keys to the buyer.

Example of reliable sales process

Sales process is usually divided into stages, first of which is conclusion of the Reservation Agreement. Along with the

conclusion of named agreement, you will be required to pay the reservation deposit of €10,000 in order to remove the apartment you required from the market.

Next step in the process is to conclude the Main Sales Contract, right after the final Building Permit is received. This agreement regulates in detail terms and conditions of your purchase along with precise description of the unit you are purchasing, delivery dues and payment schedule.

According to Montenegrin legislation, this contract needs to be signed in front of the local court. In case that you find it difficult to come to Montenegro to do it in person, representatives of developer should   make arrangements for you to authorize your representative to do it on your behalf, with the power of attorney.

Whenever you decide to make an inspection trip to Montenegro and visit the development site, developer Staff, should be at your disposal to lead you through the project and its stages.

Payments are staged and in most cases installments are scheduled in the following manner:

Note:

1. Amount can be determined in different manner.

2. Depending on your agreement with developer it should be possible to set out different schedule.

Additional fees:

In addition to the selling prices there are couple of minor fees the buyer will incur.

- Legal fees, payable directly to the lawyer, around 500-600 €

- Transfer tax of 2% payable by the purchaser on all property transactions in Montenegro

  of 3% payable direct to your estate agent

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5. Elements of contract in off plan property sales

Off plan buying as a specific model understands the contract in which will clearly be precise all the moments in buying process.

- The most often model of off plan buying the property understands specific dynamics of payment, connected to the certain phases of the building of object.

 Elements, which the contract should contain, are:

- Information about the subject of the contract,

- Information about parts in contract,

- Information about the amount of money ,

- Information about the dynamics of payment and the phases of the building of object, to which are connected certain rates of payment

- Articles which precise penalties in the case of not respecting obligations defined in the contract for the two parts who signed the contract.

Precise defined buying contract ( rights and obligations of the parts of contract ) for the buyer represents a kind of insurance from the eventual not respecting the contract, so it is in the interest of the buyer that before signing the contract check the form of the contract- or if the contact completely protects his rights and clearly precise the obligations of the another part of the contract.

Remark:

Hire a lawyer or right company for the legal assistance in the analysis of the contract and his elements.

Montenegro Datum Team standing on disposal to all buyers to guide them through buying process in Montenegro.