Some of the new provisions in the Draft Law on Mediation in Real Estate Sales and Leasing, established by the Government of Montenegro, are expected to bring changes to the real estate market. Igor Vlaović, an agent at Concord Real Estate, believes this remains a challenging issue.
“The real estate market is flooded with a large number of intermediaries, including those who lack the appropriate qualifications or certifications. This situation complicates work, reduces client trust, and creates the potential for uncertainty in transactions,” Vlaović stated.
Speaking about whether the implementation of this law could potentially impact the grey economy, Vlaović explains that the grey economy mainly manifests through illegal or unregistered intermediaries, transactions that are not recorded in official books (tax evasion, avoidance of VAT), and inadequate control over the legality of real estate sales and leases.
“From the perspective of agencies that operate transparently or are part of major franchises, it is demotivating to persistently work this way while other agencies flout the system and contribute to the grey economy. It is encouraging that the law will require all intermediaries to be licensed, meaning they will be obligated to operate within the legal framework. This will prevent unregistered or ‘grey’ agents from operating, who often work without proper education or oversight. Licensed agents will be subject to regular supervision by the competent authorities, ensuring their activities comply with the law and avoid illegal practices.”
The practical steps required for an agent to obtain a license and complete the process are still not fully defined.
Mandatory Education Means Greater Responsibility
“First, it must be understood that being a real estate agent is a demanding and responsible job, but also one of the more rewarding professions. It is expected that in the coming years, the number of people entering this profession will increase. Mandatory education and licensing also mean greater responsibility for agents toward clients and the law. Intermediaries will be subject to audits and controls, reducing the possibility of errors and disputes in transactions,” Vlaović emphasized.
According to him, greater responsibility also means better risk management and professional client advising. Mandatory education, licensing, specialized courses, examinations, and continuous professional development will lay the foundation for a market in which intermediaries maintain high professional standards, improving service quality, increasing competition, and enhancing consumer trust. In Vlaović’s opinion, these changes will contribute to the long-term stability and development of the real estate market in Montenegro.
The adoption of the Law on Mediation in Real Estate Sales and Leasing will create a safer, more stable, and more transparent market, which will directly benefit foreign investors.
“With greater legal certainty, transparency, transaction efficiency, and better protection of foreign investors’ interests, Montenegro will become a more attractive destination for foreign investment in the real estate sector, stimulating economic growth and development. Foreign investors will be able to invest with greater confidence, knowing that their investments are protected by legal standards and business regulations,” Vlaović concluded.
