Checking Property Before Purchase

In the certificate check mortgages and other encumbrances, provisional registrations and annotations. Pay particular attention to the annotation of an enforcement decision on the property (Article 110 of the Law on State Survey and Real Estate Cadastre), annotations of disputes and annotations related to illegal buildings: legalisation decision, ban on alienation, ban on carrying out activity and demolition decision (Article 98, supplemented by OG MNE 160/25). An annotation of a dispute is deleted ex officio after five years from entry, but can be renewed on request (Article 106). Registration is allowed only if the certificate contains no annotation banning future registration (Article 119).

The seller must be a person able to dispose of the property (Article 119 of the Law on State Survey and Real Estate Cadastre). If a deceased owner is registered, the certificate shows an annotation of the heirs or of unknown heirs (Articles 111, 111a, 111b); the probate proceedings and registration of the heirs must come first. In co-ownership each co-owner may dispose of his own share, but if a co-ownership share is sold, the other co-owners have a right of pre-emption; the offer is delivered to them in writing, and if they do not accept it within 10 days, the share can be sold to a third party (Article 132 of the Law on Property Relations).

For a building, check whether it is registered in the cadastre (the property certificate contains the building and its area) and whether there is a building permit and a use permit or a legalisation decision. An illegal building that is not registered in the cadastre or for which no legalisation decision has been issued cannot be sold, and no activity may be carried out in it (Article 33 of the Law on Legalisation of Illegal Buildings). Exceptions are, among others, a mortgage, inheritance, a gift between first-line relatives and partition between first-line heirs (Article 33(5), amendments OG MNE 18/26). A building with the annotation “no use permit” can be sold if it was built in accordance with the building permit (Article 33(6)). Legalisation is carried out by the competent local government body.

Property tax is paid by the owner registered in the cadastre on 1 January of the tax year (Article 4 of the Law on Property Tax), and the instalments fall due on 30 June and 31 October (Article 15). So for the year in which you buy, ask the seller for the tax decision and proof of the instalments paid. Also ask for electricity, water and municipal bills, and for a flat in a building a confirmation from the building manager about debts for common costs.

When all checks pass, conclude the contract at the notary in whose area the property is located (Article 9 of the Law on Notaries). The seller, the buyer and all co-owners come in person or with a power of attorney. The tax and registration steps are described in the procedure “Purchase of Land and Real Estate”.