Montenegro adopts new law to regulate real estate market

The Law on Mediation in the Sale and Lease of Real Estate was adopted on July 30, 2025, with the aim of regulating the market and combating the gray economy in Montenegro’s real estate sector. This new legislation introduces a number of important changes, including: mandatory licensing of intermediaries, a professional exam requirement for agents, the establishment of a register of authorized real estate agencies, and more.
Additionally, the law prohibits advertising real estate without clearly displaying the agency’s name and the registration number under which it is listed in the official registry of intermediaries. Below, we provide the full text of the Law on Mediation in the Sale and Lease of Real Estate in Montenegro.

Law on mediation in the sale and lease of real estate

I. GENERAL PROVISIONS

Subject
Article 1

This law regulates the conditions and manner of performing the activity of mediation in the sale and lease of real estate.

Mediation in the sale and lease of real estate
Article 2

Mediation in the sale and lease of real estate is an activity that encompasses the tasks of finding persons and connecting them with the principal for the purpose of negotiating or concluding a contract for the sale or lease of real estate, which is performed for a fee.

Performing the activity of mediation in the sale and lease of real estate
Article 3

The activity of mediation shall be performed by a business entity or entrepreneur with headquarters in Montenegro, who must be registered in the Register of Mediators (hereinafter: mediator). The activity of mediation may also be performed by a business entity or entrepreneur with headquarters in a European Union Member State or a Member State of the Agreement on the European Economic Area, registered to perform mediation activities in the sale and lease of real estate in the state where they have their headquarters, in accordance with the regulations of that state.

Application of other laws
Article 4

For matters not regulated by this law, the provisions of the law governing contractual obligations shall apply accordingly.

Use of gender-sensitive language
Article 5

Terms used in this law to refer to natural persons in the masculine gender shall also apply to the feminine gender.

II. CONDITIONS FOR PERFORMING MEDIATION

Conditions for registration in the register of mediators
Article 6

A legal entity or entrepreneur may be registered in the Register of Mediators if they:
1) Are registered in the Central Register of Business Entities for the activity of mediation in the sale and lease of real estate as their primary activity;
2) Employ at least one full-time employee who has passed the professional exam in accordance with Article 7 of this law (hereinafter referred to as an agent);
3) Have premises that meet the conditions specified in Article 9 of this law;
4) Have concluded a professional liability insurance contract;
5) Whose owner, founder, and agents have not been finally convicted of criminal offenses against payment transactions and business operations, property, and official duties with a prison sentence longer than three months.

Professional exam for performing mediation activities in the sale and lease of real estate
Article 7

A natural person who has residence or approved permanent or temporary stay in Montenegro, or in a member state of the European Union or a member state of the Agreement on the European Economic Area, in accordance with the law regulating the stay and work of foreigners and the law regulating international and temporary protection, and who has at least Level IV of the National Qualifications Framework of education, may take the professional exam for performing mediation activities in the sale and lease of real estate (hereinafter: professional exam).
An application for taking the professional exam, along with evidence proving the fulfillment of the conditions from paragraph 1 of this Article, shall be submitted to the Chamber of Commerce of Montenegro (hereinafter: Chamber of Commerce).
The Chamber of Commerce shall issue a decision approving the candidate to take the professional exam if the conditions from paragraph 1 of this Article are met.
The professional exam is organized and conducted by the Chamber of Commerce.
The professional exam is taken in the Montenegrin language, before a Commission appointed by the Chamber of Commerce.
The Commission has a president, who is a representative of the state administration authority competent for economic development matters (hereinafter: Ministry), and at least two members, one of whom is a member from the Chamber of Commerce and one member from the Ministry.
Administrative and other tasks for the needs of the Commission are performed by the Commission Secretary, appointed from among the employees of the Chamber of Commerce.
The president, members, and secretary of the Commission are entitled to remuneration for their work.
A certificate is issued upon passing the professional exam.
The program and manner of taking the professional exam, the composition and appointment of the Commission referred to in paragraph 5 of this Article, the amount of remuneration for the president, members, and secretary of the Commission, as well as the amount of the costs for taking the professional exam, with the prior consent of the budgetary authority, shall be prescribed by the Ministry.

Liability insurance contract
Article 8

The intermediary (agent) is obliged to conclude a liability insurance contract for damage that may be caused to the principal or other persons by performing mediation activities in the sale and lease of real estate, with an insurance company headquartered in Montenegro.
For damage that the intermediary may cause while performing mediation activities in the sale and lease of real estate, the minimum insured amount shall not be less than 20,000 euros per one insured event, and 60,000 euros for all claims for compensation in one calendar year of insurance.
The intermediary may conclude a liability insurance contract for damage caused to the principal or other persons by performing mediation activities in the sale and lease of real estate with an insurance company headquartered in a member state of the European Union or a member state of the European Economic Area, provided that such insurance contract covers services provided in Montenegro.

Premises and equipment
Article 9

The intermediary performing mediation activities in the sale and lease of real estate must have premises with appropriate equipment, which are completely separated from spaces used for other purposes and which meet the minimum technical requirements.
The minimum technical requirements for the premises and equipment referred to in paragraph 1 of this article shall be prescribed by the Ministry.

Registration in the register of intermediaries
Article 10

Registration in the Register of Intermediaries shall be carried out upon the request of a business entity or entrepreneur who meets the conditions prescribed by this law.
The Ministry shall issue a decision on registration in the Register of Intermediaries within 15 days from the date of submission of a complete application.
Registration in the Register of Intermediaries shall be conducted without delay, and no later than three days from the date of the decision.
An administrative dispute may be initiated against a decision rejecting the application for registration in the Register of Intermediaries.
The intermediary may commence mediation activities in the sale and lease of real estate upon registration in the Register of Intermediaries.
The application form for registration in the Register of Intermediaries shall be prescribed by the Ministry.

Data entered in the register of intermediaries
Article 11

The Register of Intermediaries is a public, electronically maintained database of intermediaries engaged in mediation activities in the sale and lease of real estate in Montenegro.
The Register of Intermediaries shall contain data on:
1) intermediaries (name, registered office address, and tax identification number or unique personal identification number, number and date of the decision on registration in the Register of Intermediaries, as well as other data about the intermediary, founder or owner if the intermediary is a business entity, and its legal representative);
2) agents (full name, as well as the number and date of the certificate of passed exam);
3) address of the premises referred to in Article 9 of this law;
4) imposed misdemeanors and protective measures pursuant to Articles 36, 37, and 38 of this law.
Data in the Register of Intermediaries shall be kept permanently.
The detailed content and manner of maintaining the Register shall be prescribed by the Ministry.

Access to the register of intermediaries
Article 12

Upon the request of an interested party, the Ministry shall issue an extract from the Register of Intermediaries within three days from the date of receipt of a complete application.
The form of the extract referred to in paragraph 1 of this Article shall be prescribed by the Ministry.

Changes to data in the register of intermediaries
Article 13

The intermediary is obliged to report any changes to the data entered in the Register of Intermediaries within 15 days from the date the change occurs.
The Ministry shall decide on the reported change of data in the Register of Intermediaries by a decision within 15 days from the date of submitting a complete report.
An administrative dispute may be initiated against the decision referred to in paragraph 2 of this Article.

Deletion from the register of intermediaries
Article 14

An intermediary shall be removed from the Register of Intermediaries if:
1) they cease to meet any of the conditions for registration in the Register of Intermediaries as prescribed in Article 6, paragraph 1 of this law;
2) the registration in the Register of Intermediaries was made based on inaccurate data;
3) the intermediary changes its activity so that mediation in the sale and lease of real estate is no longer its primary activity;
4) they do not act in accordance with regulations governing the prevention of money laundering and financing of terrorism;
5) at their own personal request.
Deletion from the Register of Intermediaries shall be carried out by the Ministry ex officio, based on a report from the market inspection regarding reasons under paragraph 1 points 1, 2, and 3 of this Article, or based on a report from the organizational unit of the administrative authority responsible for police matters that performs financial intelligence tasks, regarding reasons under paragraph 1 point 4 of this Article.
The Ministry shall issue a decision on the deletion of an intermediary from the Register within 15 days from the initiation of the deletion procedure in accordance with paragraph 2 of this Article, or from the receipt of the request referred to in paragraph 1 point 5 of this Article.
An administrative dispute may be initiated against the decision on deletion of an intermediary.

Carrying out mediation activities without a professional exam
Article 15

A business company or entrepreneur engaged in mediation activities may not employ or engage, outside of employment, any person who has not passed the professional exam.

Performing similar activities
Article 16

An agent shall not, without the consent of the intermediary with whom they are employed, perform mediation activities in the sale and lease of real estate as secondary work for themselves or another intermediary, nor perform other tasks or actions identical or similar to mediation carried out by the intermediary, or services related to the transaction subject to mediation.
If an agent acts contrary to the prohibition stated in paragraph 1 of this Article, the intermediary may request the transfer of the mediation fee from such a transaction to themselves.

III. CONTRACT ON MEDIATION IN THE SALE AND LEASE OF REAL ESTATE

Mediation Contract
Article 17

By the mediation contract in the sale and lease of real estate (hereinafter: mediation contract), the intermediary undertakes to endeavor to find and connect a person with the principal for the purpose of negotiating or concluding a contract on the sale or lease of real estate, and the principal undertakes to pay the intermediary a fee if such a legal transaction is concluded.
The principal may be a seller, buyer, lessor, lessee, or their attorney-in-fact or legal representative.

Form and content
Article 18

The mediation contract shall be concluded in written or electronic form, in accordance with the law regulating electronic commerce.
The principal and the intermediary are obligated to conclude a mediation contract that contains:
1) the full name, or company name, registered office, tax identification number of the intermediary, and proof of registration in the Register of Intermediaries;
2) the full name, or company name, residence or registered office, and unique identification number or tax identification number of the principal, their attorney-in-fact, or legal representative;
3) data on the type and essential elements of the legal transaction relating to the sale or lease of real estate (hereinafter: legal transaction) for which mediation is performed, including the sale or lease price;
4) data on the amount, manner, and deadline for payment of the mediation fee;
5) the duration for which the contract is concluded;
6) data on the type and amount of costs for additional services, if agreed upon;
7) rights and obligations of the intermediary and the principal.
The principal and the intermediary are obliged to determine the sale price or lease price of the real estate in a manner that includes the amount of the mediation fee.

Duration of the mediation contract
Article 19

The mediation contract is concluded for a fixed period and may be extended. Unless otherwise agreed, the mediation contract shall be deemed concluded for a period of six months.

Obligations of the intermediary
Article 20

The intermediary undertakes to:
1) endeavor to find and connect the principal with a person for the purpose of concluding the legal transaction that is the subject of the mediation contract;
2) examine documents proving ownership or other real rights on the real estate that is the subject of sale or lease mediation, and specifically warn the principal about;
- potential risks related to registered rights or encumbrances on the respective real estate in the real estate cadastre;
- the existence of pre-emption rights and restrictions in legal transactions pursuant to special regulations;
3) perform necessary actions to present the real estate on the market and, if necessary, publish an advertisement regarding the sale or lease of the real estate in an appropriate manner, and perform other actions agreed upon in the mediation contract that go beyond ordinary presentation, for which the intermediary is entitled to separate pre-agreed expenses;
4) strive to enable property viewings while respecting appropriate internal procedures aimed at minimizing the risk of abuse towards the principal by third parties;
5) mediate negotiations and endeavor to conclude the contract;
6) inform the principal of all circumstances relevant to the legal transaction that is the subject of the mediation contract, which are known or ought to be known to the intermediary.

Sub-mediation agreement
Article 21

The intermediary may, by a sub-mediation agreement, transfer all or part of their rights and obligations from the mediation contract to another intermediary (hereinafter: sub-intermediary), if the principal has expressly consented to this in the mediation contract, or if they subsequently consent in writing or electronic form to the conclusion of the sub-mediation agreement, in accordance with the law governing electronic commerce.
The sub-mediation agreement shall be concluded in written or electronic form, in accordance with the law regulating electronic commerce.
The sub-mediation agreement shall specify the manner and conditions for the transfer of rights and obligations referred to in paragraph 1 of this article, payment of mediation fees, and contract termination.
The intermediary is obliged to deliver a copy of the sub-mediation agreement to the principal within three days from the date of conclusion of that agreement.

Due diligence
Article 22

In performing mediation or other actions related to the legal transaction that is the subject of mediation, the intermediary is required to act with the care of a prudent businessperson.

General terms and conditions of business
Article 23

The intermediary is obliged to establish general terms and conditions of business in accordance with this law and other regulations.
The general terms and conditions of business shall particularly include:
1) the amount of the mediation fee or the method of determining such fee;
2) a description of the tasks that the intermediary is obliged to perform, which shall mandatorily include: connecting the principal and the person for negotiations or conclusion of a contract for the sale or lease of real estate; verification of documents related to the real estate that will be the subject of sale or lease and inspection of the real estate's condition, as well as necessary negotiations and preparatory work for concluding the legal transaction which is the subject of the mediation contract;
3) the type and amount of costs for additional services.
The intermediary is obliged to prominently display their general terms and conditions of business in the premises where they conduct mediation activities in real estate sales and leasing, as well as on their website, if they have one. These general terms and conditions are an integral part of the mediation contract.
The intermediary is also obligated to specifically inform the principal about the content and binding nature of the general terms and conditions of business.

Record of brokerage
Article 24

The broker shall keep records of brokerage activities containing data on concluded brokerage contracts, particularly data about the principal, the real estate whose sale or lease is the subject of brokerage, proof of property viewings by potential buyers, sellers, tenants, and landlords, the outcome of the brokerage, data on paid brokerage fees, and data on concluded subcontracting agreements.
The detailed content, manner of keeping, and retention period of the records shall be prescribed by the Ministry.

Advertising
Article 25

The broker is obliged, when publishing advertisements related to the sale or lease of real estate that is the subject of brokerage, in public media, other written and electronic media, on the internet, in the premises where the brokerage activity is performed, or at other places where advertising related to the sale or lease of real estate is allowed, to include, alongside their name and registration number in the Broker Register, information about the location, area, and structure of the real estate.
The conditions of sale or lease of the real estate established by the brokerage contract must fully correspond to the conditions of sale or lease advertised.
It is prohibited for the broker to publish an advertisement related to the sale or lease of real estate for which the broker does not have a concluded brokerage contract or subcontracting contract.

Authorization for concluding a sale contract
Article 26

The broker may, upon authorization from the principal, conclude a preliminary contract or a contract for the sale of real estate, or a lease agreement for real estate, in the name and on behalf of the principal, and may receive the full or partial purchase price (including deposit, compensation, and similar), or lease payment on that basis.
The authorization referred to in paragraph 1 of this article must be notarized in accordance with the law regulating the notarization of signatures, handwriting, and transcripts.

Right to brokerage fee
Article 27

The broker acquires the right to the brokerage fee at the moment the legal transaction which is the subject of the brokerage contract is concluded, unless the broker and the principal have agreed that the right to the fee is acquired at the moment of concluding a preliminary contract in the legally prescribed form.
The broker cannot demand partial payment of the brokerage fee in advance, i.e., before the conclusion of the legal transaction or the preliminary contract referred to in paragraph 1 of this article.
Exceptionally from paragraph 2, the brokerage contract may provide for partial payment of the fee from funds received as a deposit if the principal has retained the received deposit due to non-performance of the contract by the other party.
The broker may charge fees for additional services related to the legal transaction that is the subject of the brokerage contract only if this is explicitly stated in the brokerage contract.
The broker, or subcontractor, is not entitled to a brokerage fee if they conclude the legal transaction with the principal as a contracting party, nor if such a transaction is concluded by an agent who performs brokerage services for the broker or subcontractor.
Unless otherwise explicitly agreed, the broker is entitled to a brokerage fee even if, within nine months from the termination of the brokerage contract, the principal concludes a legal transaction with a third party that results from the broker’s direct actions before the contract termination.

Obligations of the principal
Article 28

Depending on the type of legal transaction that is the subject of the mediation agreement, the Principal shall have the following obligations:
1) To inform the mediator of all circumstances relevant to the performance of mediation;
2) To provide the mediator with access to the original documents proving his right to the real estate that is the subject of sale or lease, including documents regarding the purpose of the real estate if it concerns land, or to notify the mediator of all registered and unregistered encumbrances existing on the real estate;
3) To enable the mediator and the person interested in concluding the legal transaction to inspect the real estate, in an agreed manner and at an agreed time;
4) To inform the mediator of all essential information about the real estate, which particularly includes precise data about the price, location, structure of the real estate, and other relevant details;
5) To pay the mediator the agreed mediation fee after the conclusion of the legal transaction that is the subject of the mediation agreement, or after the conclusion of a preliminary contract if specifically agreed upon, as well as to reimburse the mediator for other costs incurred during mediation if these have been specifically agreed upon;
6) To inform the mediator of all changes related to the legal transaction that is the subject of the mediation agreement, especially regarding rights to the real estate, deadlines, and price, within three working days from the date the change occurred.
If the Principal concludes the mediation agreement contrary to the principle of good faith and fairness, he is obliged to reimburse the mediator for the costs incurred during mediation, which shall not exceed the agreed mediation fee.

Nullity of the obligation to enter into negotiations
Article 29

The Principal is not obligated to enter into negotiations for concluding the legal transaction that is the subject of the mediation agreement with the person introduced by the mediator, nor to conclude that legal transaction, and any provision in the mediation agreement stipulating otherwise shall be null and void.
The Principal is obliged to conduct negotiations for concluding the legal transaction that is the subject of the mediation agreement in good faith, and is liable for any damage caused to the mediator or third parties in accordance with the law governing contractual obligations.

Anonymous principal
Article 30

A mediator who performs mediation services for a Principal wishing to remain anonymous is obliged not to disclose the identity of the Principal, in accordance with the terms of the mediation agreement, and at the latest until the conclusion of the legal transaction that is the subject of the mediation agreement.
A clause regarding an anonymous Principal must be explicitly agreed upon.

Exclusive mediation
Article 31

The Principal may be obligated by explicit agreement of an exclusive mediation clause not to engage another mediator for mediation in relation to the sale or lease of real estate within the agreed period.
If during the validity of the exclusive mediation clause the Principal concludes a legal transaction related to the real estate referred to in paragraph 1 of this Article, for which another mediator acted, the Principal is obliged to pay the mediator with whom the exclusive mediation was contracted the agreed mediation fee as compensation for damages.
The mediator is obliged to specifically inform the Principal about the meaning and legal consequences of the exclusive mediation clause referred to in paragraph 1 of this Article.

Termination of the mediation agreement
Article 32

The mediation agreement ceases to have legal effect upon the expiration of the period for which it was concluded, upon the conclusion of the legal transaction that was the subject of the mediation agreement, or upon termination in written or electronic form in accordance with the law governing electronic commerce.

Termination of the agreement
Article 33

Termination of the mediation agreement does not have to be justified and takes legal effect at the moment it is delivered to the mediator.
The provisions of the law governing contractual obligations related to the withdrawal of a mandate for mediation shall apply accordingly to the termination of the mediation agreement.
The Principal is obliged to reimburse the mediator for costs incurred in connection with the mediation only if it has been explicitly agreed that the Principal shall bear them, regardless of the success of the mediation.

Deposit
Article 34

The mediator may open separate accounts with commercial banks for the purpose of receiving, holding, and handing over money on behalf of and for the account of the Principals (deposit accounts), in accordance with the special authorization from Article 26 of this law, whereby such accounts shall not be considered the business accounts of the mediator and cannot be subject to compulsory enforcement against the mediator.

IV. SUPERVISION

Article 35

Supervision over the implementation of this law and regulations enacted based on this law shall be conducted by the Ministry. Inspection supervision over the implementation of this law shall be carried out by the Market Inspectorate.

V. PENAL PROVISIONS

Offenses and protective measures
Article 36

A legal entity shall be fined a monetary penalty ranging from 4,000 euros to 20,000 euros for an offense if it:
1) Performs mediation without being registered in the register of mediators (Article 3, paragraph 1).
For the offense referred to in paragraph 1 of this Article, an entrepreneur shall be fined a monetary penalty ranging from 2,000 euros to 6,000 euros.
For the offense referred to in paragraph 1 of this Article, a natural person and a responsible person within a legal entity shall be fined a monetary penalty ranging from 1,000 euros to 2,000 euros.
In addition to the monetary penalty referred to in paragraph 1 of this Article, a protective measure banning the exercise of the profession, activity, or duty for a period of 30 days to six months, as well as a protective measure ordering the public announcement of the decision, may be imposed on the legal entity, entrepreneur, or natural person.

Article 37

A legal entity shall be fined a monetary penalty ranging from 1,000 euros to 4,000 euros for an offense if it:
1) Fails to report any change of data entered in the register of mediators within 15 days from the date the change occurred (Article 13);
2) Fails to establish general business conditions in the manner prescribed by Article 23, paragraphs 1 and 2 of this law;
3) Fails to display the general business conditions in the manner prescribed by Article 23, paragraph 3 of this law;
4) Fails to keep records of mediation containing data on concluded mediation contracts (Article 24, paragraph 1).
For the offense referred to in paragraph 1 of this Article, an entrepreneur shall be fined a monetary penalty ranging from 500 euros to 2,000 euros.
For the offense referred to in paragraph 1 of this Article, a responsible person within a legal entity shall be fined a monetary penalty ranging from 500 euros to 1,000 euros.

Article 38

A legal entity shall be fined a monetary penalty ranging from 1,000 euros to 6,000 euros for an offense if it:
1) Employs or engages outside of employment a person who has not passed the professional exam for mediation tasks (Article 15);
2) Fails to conclude a mediation agreement in accordance with Article 18, paragraph 2 of this law;
3) When publishing advertisements related to the sale or lease of real estate that are the subject of mediation, in public media, other written and electronic media, on the internet, at the premises where mediation activities are performed, or other permitted places for advertising related to the sale or lease of real estate, fails to include, alongside its name and registration number in the Register of Mediators, information about the location, area, and structure of the real estate (Article 25, paragraph 1);
4) Publishes an advertisement concerning the sale or lease of real estate for which the mediator does not have a concluded mediation or sub-mediation agreement (Article 25, paragraph 3).
For the offense referred to in paragraph 1 of this Article, an entrepreneur shall be fined a monetary penalty ranging from 500 euros to 2,000 euros.
For the offense referred to in paragraph 1 of this Article, a responsible person within a legal entity shall be fined a monetary penalty ranging from 500 euros to 1,000 euros.
In addition to the monetary penalty referred to in paragraph 1 of this Article, a protective measure banning the exercise of the profession, activity, or duty for a period of 30 days to three months, as well as a protective measure ordering the public announcement of the decision, may be imposed on the legal entity or entrepreneur.

VI. TRANSITIONAL AND FINAL PROVISIONS

Deadline for enacting subordinate legislation
Article 39

Subordinate legislation for the implementation of this law shall be enacted within 9 months from the date this law enters into force.

Deadline for organizing the professional examination
Article 40

The Chamber of Commerce is obliged to ensure conditions for organizing the professional examination for agents within 60 days from the date of adoption of the act referred to in Article 7, paragraph 10 of this law.

Deadlines for compliance of operations
Article 41

Companies and entrepreneurs engaged in mediation activities related to the sale and lease of real estate are obliged to align their operations with this law and submit an application for registration in the Register of Mediators within 12 months from the date this law enters into force.

Application of provisions
Article 42

The provision of Article 3, paragraph 2 of this law shall apply from the date of Montenegro’s accession to the European Union.

Entry into force
Article 43

This law shall enter into force on the eighth day following its publication in the "Official Gazette of Montenegro".

You can view the full document at the following link: https://zakoni.skupstina.me/zakoni/web/dokumenta/zakoni-i-drugi-akti/420/3583-20364-16-2-24-4.pdf. 
Amfora Real Estate Agency monitors all legal changes related to the real estate market in Montenegro and is at your disposal for any information and professional support when buying, selling, or leasing property. For a safe and legally compliant real estate transaction or lease, contact Amfora – your reliable partner in the Montenegrin real estate market.


Disclaimer: This translation of the law is informal and provided for informational purposes only. The official version of the law is available at the following link: https://zakoni.skupstina.me/zakoni/web/dokumenta/zakoni-i-drugi-akti/420/3583-20364-16-2-24-4.pdf.