The Role of a Notary in the Real Estate Purchase Process

For a real estate purchase agreement to be legally valid and executed, it is necessary to conclude a sales contract. In Montenegro, the law stipulates that the real estate sales contract must be concluded in the form of a notarial record, requiring the engagement of a notary for the drafting of the contract.

A notary is a public official who performs their duties professionally, independently, and impartially. The notary advises the parties, examines their intentions, informs them about legal risks, and provides suggestions for possible solutions. The notary remains neutral and must respect the interests of all parties involved.

After communicating the terms of the sale to the notary—such as price, payment deadlines, and method—the notary will explain legal risks, potential security measures, and offer appropriate advice or guidance. The notary drafts the contract based on specific documentation that must be legally valid. This documentation primarily includes personal identification documents, property records, and verification of property status. The notary will explain which documents need to be submitted when concluding the contract and why they are necessary.

Therefore, the role of the notary includes, among other things, investigating and determining the true intentions of the contracting parties, presenting all legal options, risks, and consequences of the intended legal transaction clearly and comprehensibly. The final decision on the contract's content lies with the contracting parties, with the notary obligated to convey their intentions clearly. It is implied that the notary must ensure that the contract is in accordance with the law.

It is advisable for the parties or their chosen intermediary to schedule a meeting with the notary to discuss the content of the legal transaction and the necessary documentation for the proper drafting and eventual signing of the contract.

During the appointed meeting, the notary will read the contract to the contracting parties, ensuring that the text aligns with their intentions.

After signing the contract with the notary and fulfilling the conditions outlined in the contract (such as payment of the price), the contract is submitted to the Cadastre and State Property Administration for registration in the name of the new owner—the buyer. The parties can submit the contract and request themselves or authorize the notary to submit the request for a change of ownership on their behalf.

Upon receiving the notarial record, the Cadastre and State Property Administration will issue a Decision on Registration and send it to the contracting parties. It is recommended that the parties carefully read the decision upon receipt to identify any deficiencies and promptly address them for correction. After the decision becomes legally binding, the buyer will be registered as the new owner of the real estate.

While the notary is not a tax advisor, it is worth noting that, according to Montenegro's law, every acquirer of real estate is obliged to pay a property transfer tax, which amounts to 3% of the property's market value. The buyer must submit a tax return with proof of paid property transfer tax to the Tax Administration within 15 days of acquiring the basis for ownership registration. There are certain tax exemptions or reductions in the property transfer tax outlined in the law, and you can consult with the notary regarding these matters.

The fees for notarial services are uniformly regulated and determined based on the financial value of the legal transaction. The notarial tariff is the same throughout Montenegro, and the notary must not charge fees contrary to the prescribed tariff.

Parties have the right to freely choose a notary, mutually agreeing upon one while respecting territorial jurisdiction.

Notary Office

Maja Đurasović

Ivanka Šćepanović

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