What's new in the real estate brokerage act

The Law on mediation in the sale and lease of real estate finally brings order to Montenegro’s property market. For years, the real estate sector operated without clear rules or oversight, which led to many unpleasant experiences for both local citizens and foreign investors. Unlicensed brokers, inconsistent commissions, and unrealistic listings undermined trust in the industry.
For these reasons, the Law on mediation in the sale and lease of real estate was adopted, with the goal of establishing order, improving client protection, and professionalizing the entire sector. You can read more about the adoption of this law in our blog post “Montenegro adopts new law to regulate real estate market.”

Key updates in the real estate brokerage act

Mandatory professional exam
Every agent engaged in real estate sales or leasing must now pass a professional exam. The application for the exam is submitted to the Chamber of Commerce, and after successfully completing it, candidates receive an official certificate. This requirement reduces the number of unregistered and unqualified intermediaries, helping to protect clients and improve the profession’s reputation. In other words, brokerage can no longer be carried out by just anyone, but only by qualified professionals with sufficient knowledge of the real estate market. The law also specifies that an entrepreneur or company cannot employ a broker who has not passed the exam.

Liability insurance agreement
Another important change is that every broker is now required to conclude a liability insurance contract for potential damages caused to clients or third parties in the course of their work. With this obligation, brokers can no longer operate without financial coverage for possible mistakes or harm they may cause. This gives clients an additional guarantee that their interests will remain protected, even in such cases.

Brokerage agreement
Under the new law, the broker and the client are required to sign a brokerage agreement, either in written or electronic form, which must include all the elements outlined in Article 18 of the Act. For clients, this provision ensures greater clarity and transparency in their dealings with brokers. When the sale or rental price is agreed upfront, along with the broker’s commission, the client knows exactly how much the transaction will cost, with no hidden fees. This builds greater trust and security throughout the entire mediation process.

Mandatory registration in the brokers’ registry
All entrepreneurs and companies engaged in real estate sales and leasing must align their operations with the new law. They are also required to submit an application for entry into the Brokers’ Registry within 12 months of the law coming into effect. This introduces clear oversight and record-keeping, allowing clients to verify at any time whether they are working with a licensed and registered agency. If any information already entered in the Registry changes, the broker must report it within 15 days of the change.

The new law regulating real estate in Montenegro introduces rules that were previously absent from the market. These changes represent an important step toward greater legal certainty, transparency, and professionalism in the sector. They protect clients from potential damages and hidden costs, require brokers to act responsibly under clearly defined conditions, and align local practices with European standards.
As an agency operating fully in compliance with current regulations, Amfora provides its clients with security, as every transaction is backed by accountability, legality, and dedication to their best interests. For a safe purchase, sale, or lease of real estate, contact Amfora!