Montenegro Enacts Real Estate Mediation Law: New Rules for the Housing Market

A new law has come into force in Montenegro, aiming to regulate a real estate market that for years remained opaque and riddled with violations. Unlicensed agents, fake listings, and unclear contracts made it one of the most chaotic sectors of the economy. Now, for the first time, clear rules have been established for all participants.

Since August 5, 2025, the Law on Mediation in Real Estate Transactions and Leasing has been in effect, officially published in the Official Gazette of Montenegro. This is the first systemic document to regulate the activities of agencies, brokers, property owners, and online platforms. Its adoption marks a key step toward organizing the real estate market and strengthening legal protection for participants.

Licensing of Companies and Agents

The law introduces mandatory licensing of agencies and agents. To obtain a license, professionals must pass a qualification exam and be registered in a public registry. This mechanism ensures transparency, allowing clients to check whether their broker is officially recognized.

Agencies must also comply with strict operational rules, including professional liability insurance to guarantee compensation in case of malpractice. They are also required to use fiduciary (escrow) accounts for client funds, preventing agents from holding money directly. Transfers will only be executed once contractual obligations are met, significantly reducing risks of fraud.

Tenant Protection

The law also strengthens tenant rights by requiring all rental agreements to be concluded through intermediaries. This step eliminates the widespread practice of oral agreements, which left both tenants and landlords unprotected in disputes.

According to Bankar.me, contracts must be in written or electronic form, clearly outlining commission size, payment terms, duration, and obligations of both parties. This transparency prevents agents from altering conditions unilaterally and makes the process predictable.

Advertising and Sanctions

Advertising is now strictly regulated. Listings without an agent’s registration number are prohibited, and all advertisements must display the license details. Violations such as working without a license or refusing to sign a proper contract will lead to heavy fines and activity bans.

This framework introduces accountability and aims to eliminate unfair competition while improving client security.

Market Prospects and Impact

While some fear that licensing, exams, and insurance costs may raise commissions, experts note that competition among legal agents could stabilize prices and improve service quality.

For buyers and tenants, the law provides long-awaited protection from fraud; for the market, it fosters professionalization and alignment with European standards; and for the state, it strengthens tax collection and reduces the shadow economy.

As Bankar.me highlights, for many years clients in Montenegro faced unlicensed agents, fake ads, vague contracts, and issues with deposits. The new law seeks to end this chaos and establish a real estate system based on trust and legality.