Buying and Leasing State-Owned Real Estate

The request to buy or lease is submitted to the owner, the Government of Montenegro, through the Ministry of Spatial Planning, Urbanism and State Property (IV Proleterske brigade 19, Podgorica). State the cadastral municipality, cadastral parcel number, property certificate number, area and the purpose for which the property is needed. If only part of a parcel is bought or leased, a conditional parcelling study is needed. No form is prescribed.

The Ministry obtains opinions of competent bodies. The value of the property is assessed by the administrative body responsible for property affairs (Art. 43 of the Law, as amended in 2025). The Ministry then proposes conclusions on sale or lease to the Government. If the Government consents, the minister forms a commission that prepares the public call. To complete an urban plot, the sale is made by direct agreement without a public call.

State property is sold and leased by public auction or on the basis of collected bids, and exceptionally by direct agreement (Art. 40). A sale by direct agreement is possible only in five cases (e.g. land for buildings of state bodies, agreed transfer to a former owner for expropriated land, completing an urban plot, legalisation of a building fitted into the plan). A lease by direct agreement is possible only when even a third consecutive public call fails. The Ministry publishes the call on gov.me, with the subject, starting price, place and time of the auction and the conditions.

Any domestic or foreign legal or natural person that pays the deposit may take part. In the latest calls the deposit is 5% of the starting price (for a lease, of the annual rent) and is paid to the Ministry's account 510000000017901293 marked "deposit for participation in the public auction". The application form is obtained at the Ministry office named in the call, and the application with proof of payment is submitted by the deadline in the call.

Registration of participants starts 15 minutes before the auction at the Ministry's premises. The commission sets the minimum bid increment. The auction ends when no participant offers a higher price even on the third call, and the participant who first offered the highest price is declared the buyer or tenant. The conditions for holding the auction are met if at least one participant appears and offers the starting price. The winner's deposit is credited to the price.

The sale contract is concluded with the Government of Montenegro, that is the Ministry, no later than 60 days after the auction, by which time the price must be paid. The lease contract is concluded within 30 days of the auction (deadlines from the call). A contract on disposal of state property is concluded in writing (Art. 32). Anyone who does not conclude the contract in time loses the deposit, and the right passes to the second-ranked bidder. The buyer then applies to register ownership in the cadastre.