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In order to reduce the gray economy on the real estate market in Montenegro, changes are being introduced through the Draft Law on Real Estate Brokerage and Leasing. This regulation of the Ministry of Economic Development passed a public discussion at the end of last year, and now it is necessary to adopt it in Parliament. After this law enters into force, companies and agents engaged in mediation in the real estate market will have to align their operations with the current regulations within a year.

According to this law, only companies and entrepreneurs registered in the Register will be able to engage in mediation. In order to be registered, they must be registered in the Central Register of Business Entities for these activities. The most important items prescribed by this law, in addition to the establishment of the register, are:

1. that all agents must have passed a professional exam. In accordance with this law: "The professional exam can be taken by a natural person who has residence, approved permanent or temporary residence in Montenegro, in a country of the European Union or a member of the agreement on the European Economic Area, and who has at least level IV of the national education qualification framework. The exam is organized and conducted by the Chamber of Commerce." The program, method of taking, composition and education of the Commission for these exams, as well as the cost of taking the exam itself, will be defined by the regulations of the Ministry of Economics. The exam is taken in the Montenegrin language and certificates are obtained upon completion. Only those who have passed the professional exam will be able to do mediation jobs and will only work in one company, unless the employer approves otherwise.

2. Also, agents are obliged to highlight their information and the number under which they are registered in the register on all platforms. They will not be able to advertise apartments and plots of land without a previously signed contract, and they will receive compensation only after the work is completed, unless otherwise defined in the pre-contract. Partial payments may not be requested in advance.

3. The new law stipulates that the agency contract obligates the agent to work on the conclusion of the job for which he was hired, while the one who hired him will pay the fee upon completion of the job. The contract must be precisely defined and must contain details on the amount, method and term of payment of agents' fees. If its duration is not specified, it will be valid for six months. The agent has the right to transfer the work to another employee by signing a subcontract.

4. Companies must have:
 a minimum of one full-time employee who has passed a professional exam,
 a room that meets the technical conditions prescribed by the ministry,
 a professional liability insurance contract.
Neither the owner nor the agents may be convicted of criminal offenses against payment transactions and business operations.

5. Citizens who will use the services of agents are obliged to submit all the necessary documentation and details about the real estate, visit permits and payment of compensation for the work performed. They can cancel the contract at any time, without explanation and additional cost, unless otherwise specified in the document. For the damage that the agent could cause in this business, the lowest insured sum cannot be less than 20,000 euros per one insured case, and a total of up to 60,000 euros per year for all compensation claims.

The implementation of this law will be under the supervision of the department of economy, that is, the market inspection. Companies that employ agents without passing a professional exam, enter into illegal contracts or do not comply with advertising rules will be fined between 1,000 and 6,000 euros. The law also states the following: "A company will be fined from EUR 4,000 to EUR 20,000 if it performs mediation and is not registered in the register, an entrepreneur from EUR 2,000 to EUR 6,000, a natural person and a responsible person in a company from EUR 1,000 to EUR 2,000 . In addition to the penalty, a measure of banning the performance of activities from 30 days to six months, and a protective measure of public announcement of the decision can also be imposed.“

Source: portal Vijesti.me