Buying off-plan in Montenegro: seven checks before you pay a deposit
Off-plan is where the best prices on the coast are — and where the avoidable mistakes happen. The list we run through before any client signs a reservation.
Why off-plan, and why carefully
Buying from a developer has real advantages in Montenegro: no transfer tax, staged payments that act as interest-free finance, a new building with a warranty, and launch prices that are usually 15–25 % below the same unit completed. The branded developers on the bay have delivered every phase they have launched. Elsewhere on the coast, the record is mixed, and the contract you sign is the only thing protecting your deposit. These are the seven checks.
1 · Is there a building permit — for this building?
Ask for the građevinska dozvola and check that it covers the block and floor count you are buying into, not an earlier or smaller version of the scheme. A "permit pending" sale is a land speculation, not a property purchase.
2 · Who owns the land?
The cadastre extract should show the developer company as owner, without mortgages that outrank buyers. Bank financing is normal; what matters is that the bank releases each unit on completion.
3 · What has this developer finished before?
Visit a completed project and talk to an owner there. On-time delivery, snagging and how service charges were set after handover tell you more than any render.
4 · Are payments tied to construction milestones?
The good plans — 10 % on signing, instalments at foundation, structure, façade and 20 % on handover — mean you never pay for work you cannot see. Be wary of plans that front-load 50 % or more before the structure is up.
5 · What happens if they are late — or you are?
The contract should state a handover date, a grace period, a daily or monthly penalty for the developer and a clear withdrawal right with refund if delay exceeds a set period. Read the buyer-side penalties just as carefully.
6 · Is VAT in the price, and what exactly is included?
New-build prices should include 21 % VAT. Confirm in writing what the price covers — kitchen, bathrooms, air conditioning, parking, storage, furniture package — and what is an upgrade. Brochure photography usually shows the upgrades.
7 · How do you get the keys and the title?
Handover needs a use permit (upotrebna dozvola) and your own cadastre entry. Agree in the contract who files it, when, and that the final 20 % is paid against the registered title, not against a letter.
We run these checks for every client
Send us the project name and we will tell you within two days what we know about the developer, the permit and the contract.
