Property in Montenegro Without Permits: Why Transactions Are Harder, Notary Limits & Legalization

Why have transactions with unauthorized objects become more difficult?

The state aims to make the cadastre database transparent and encourage owners to legalize their buildings. Therefore, for objects without permits, a regime of restrictions on sale and use has been established — this is a direct legal tool for market influence.

The legal status of “illegal object” can stem from various reasons: complete lack of a construction permit, unauthorized additional floors, or the absence of a final occupancy permit. This is why it is vital to study the actual documents rather than relying on the seller’s words.

What has changed in the registration procedure in practice

• Thorough Verification: Legal status is checked more strictly: if the cadastre contains notes about a disputed status of the object, the transaction may be stopped by the notary or rejected during registration.
• Technical Compliance: Particular attention is paid to the compliance of the actual state with the documents: area, number of floors, plot boundaries, and official division into separate apartments (floor-level registration).
• Official Data: Confirmation of property status is tied to official cadastre data and commission decisions. Since rules can change, it is necessary to check the situation immediately before the purchase.

How to check a property before purchase

Checking the Property Certificate (List nepokretnosti) is a mandatory step. Recommended minimum actions:

• Property Certificate Extract: verification of the owner, shares, land purpose, and the presence of encumbrances and restrictions (section “tereti i ograničenja”).
• Ownership Structure Verification: is the apartment sold as a separate unit or as a share in the house (this carries different legal risks).
• Permit Documents: presence of a construction permit (građevinska dozvola) and certificates of compliance with the actual state of the building.
• For New Builds: verification of the investor, construction stage, and the document package to be handed over during final registration.
• Technical Utilities: checking water and electricity connections (permanent vs. temporary construction connection).
• Legal History: absence of court disputes, mortgages, sales bans, and third-party claims.

Red Flags (what should alert you)

• Proposal to finalize the deal without a notary, through a simple receipt or internal agreement.
• The seller avoids providing a fresh cadastre extract or it contains notes about disputed status.
• Proposal to process the deal through a gift deed or fictitious lease instead of a sales contract.
• Lack of registration for separate apartments (selling an apartment, but documents show a share in a common house).
• Noticeable mismatch between the area or number of floors and the data in official documents.
• Records of court disputes regarding construction lines or inspection decisions about violations.
• Utilities connected only via temporary construction schemes.
• Price significantly below market value with promises to “solve the document issues later.”

How to make a safe purchase

The most reliable way is to choose objects that already meet all legal requirements. In our practice, we focus on options with a clean history where the registration of ownership rights proceeds without complications.

• Conduct a legal verification of the property before making a deposit or advance payment.
• Clearly specify the subject of the deal, the list of mandatory documents, and the procedure in case registration is impossible in the contract.
• Make payments via bank transfers to maintain a transparent payment history.

FAQ: Answers to frequent questions