Real estate buying order
Purchasing and registration of residential and commercial buildings
Real estate offered for sale on the Montenegrin coast - a residential and commercial property (villas, apartments, cottages, hotels, restaurants, bars, etc.).
Prices are directly dependent on the location and the prestige of real estate, proximity to the sea view from a window, size and year built or the stage of readiness under construction. For example, prices of apartments, located on the coast, start at 800 euros and can reach up to 6,000 euros per sq m on average - 2,000 euros per sqm in a new building near the sea. Prices of houses, villas, town houses (in the Montenegrin understanding, villa or small house, it's almost the same thing), start at 60,000 euros for a small or unfinished house in the 1,5 - 2,0 km from the sea and can to reach 2.5 million euros for new villa with private beach. At the same time, if we talk about the golden mean, a nice house with a small plot of land can be bought for 200,000 euros.
General Questions purchase residential construction and commercial real estate:
Under the new Law on property-legal relations "of March 13, 2009., Foreign individuals and legal entities when buying properties have equal rights with citizens of Montenegro. In exceptional cases, foreign natural and legal persons may be prohibited from purchasing real estate, situated in certain parts of Montenegro, the cultural monuments of exceptional and special meaning. Foreign nationals can buy property on the land area to 5,000 sq.m. (50 hectare), provided that the construction at the site "fit" in the list of real estate, more than 5,000 sq.m. can be purchased only on the legal person. Foreign individuals as well as the citizens of Montenegro can become property owners by inheritance or gift, as well as the right to transfer ownership of a citizen of Montenegro, or other foreign entity. This requires only a passport, financial ability and desire, because the procedure of registration of ownership is simplified.
In the process of sale the buyer bears all administrative costs associated with the acquisition.
Some features of the acquisition of commercial real estate:
All objects that are used for commercial activities are considered commercial, and buy them are legal entities. When you purchase should be paid attention to the existence of such objects of special permits ("upotrebnoy permitted"), which includes project construction and project resettlement areas. "Upotrebna permitted" is proof that this space is designed specifically to operate the business. It is reported only once at the end of the facility and is legally binding until such time as there is this object. There is also a possibility translated dwelling (house or apartment) in a commercial real estate. To do this, so that the dwelling was a building permit (graђevinska have permission), the possibility of restructuring should be confirmed in a detailed plan of development (DUPe). Then, after the draft reform, must approve the project and obtain the consent of the relevant organs (medical service, fire service, etc.). And only after getting all these documents, you can contact the municipality for consent to change the destiny of the room. Further, after the conversion and acceptance of work performed by a special commission, you will receive a permit to conduct commercial activities.
Some features of the acquisition of housing under construction:
When purchasing housing under construction to check the following documents from the seller:
* Contracts for the purchase of land;
* A building permit approvals package (paid connection utility bills: sewer, water and electricity);
* Documents that indicate the quality of construction, materials, summing up the plumbing, electricity and sewer, cable television and telephone.
Contractual forms may be: a preliminary sale agreement, contract or investment contract of a joint construction - all of them are permitted by law in Montenegro. In all of them spells out the area, the boundaries of the acquired property, finishing materials from which the object is constructed, payment deadlines and penalties in case of delayed payments from the buyer or the construction of the seller.
After acceptance of the object state commission, the buyer signs the Act of Acceptance of housing, checking its compliance with the contract. After that issued the possession of the object in the property. It turns out that legally the buyer becomes the owner of housing under construction only after the land registration of the object. If the object is built without a permit or in violation and the inconsistency of the approved project documentation, or built without a full or partial payment of utility bills - at best: all this will be reflected in your contact list real estate, in the worst case: makes it impossible to obtain a certificate of ownership for purchased object, but sometimes - it blocks the operation and utility connections, in rare cases - generally lost subject of the transaction (property acquisition).
The standard process of buying and design of residential and commercial properties consist of:
1. Stage of negotiations, during which there is:
* Selection of real estate;
* Inspection of selected properties;
* Preliminary negotiations with the owner;
* Verification of legal purity (the history and validity of registration of ownership of an object, etc.) *.
2. The main stage - the signing of the preliminary and main contract, which includes:
* Final approval of the deal with the Seller, the signing agent's commission;
* Preparing and signing the preliminary contract of sale;
* Payment of the deposit - typically 10% of the value of the object (the Seller gives the Buyer a receipt for the amount received advance). Deposit payment Purchaser reserves the object. If the seller refuses to deal, the deposit amount returned to the Purchaser at double the rate in case of refusal of the Buyer - The buyer loses the amount of the deposit. If possible, transfer funds within the period of your stay in Montenegro, we can immediately conclude the main contract and make payment;
* If necessary, the possibility of the company, with a preliminary agreement provides for (further) the conclusion of the Basic Agreement with Montenegrin jur. entity established by the Buyer. Funds paid the deposit for the payment of the principal amount can be: as returned to the buyer, so that the full amount was paid with foreign currency account jur. person, and credited to the principal amount of the payment (the book value of the object is below the contract).
* The opening of private foreign currency account of an individual bank or opening bank accounts Montenegrin jur. person (takes 15 minutes);
* Transfer money into your private account of an individual currency in Montenegro, either, or to the account of its jur. persons in Montenegro;
* Preparation of the Basic contract of sale, which shall include: the contracting parties with their full data, including personal identification number, the exact identification of the property, indication of the value of the transaction, the form of payment, etc.;
* Signing and registration of the Basic Treaty in court (Osnovni Sud). At the signing and registration in the main court, the buyer pays the fees and charges for a listing real estate 8 euros for the entry in the inventory of the book - about 12 euros for the certification and submission to the Land Registry books sales contract from 0,01 to 0,25 % of property value, depending on the acquired object;
* Made the final payment under the Basic Agreement and the payment of agency commission, which ranges from 1.5 to 3%, depending on the value of the object. After the final payment of the Seller provides a receipt (confirmation) to the Buyer that he fully received the payment and authorize the payment of Buyer's inventory books as the new owner (clausula intabulandi).
Further, the contract submitted for registration.
3. The final step - registration of property rights.
* Tax Inspectorate to determine the market value of the acquired property and decides to pay the real estate tax (tax rate is 3% of the market value of the object). Notice for payment of the tax comes from a body called Uprava Prihoda after the transaction (within one month) and pay for it should be in accordance with the law within 15 days;
* Registration in the Cadastre rights of the new owner of real estate (based on the contract of sale and receipts (clausula intabulandi)), which lasts up to 60 calendar days. This is the official maximum period of registration. However, officials often can not cope with the volume of work and complete the registration after 4-6 months, placing an earlier date of registration, under the terms of 60 days.
The result: The customer receives the first decision on awarding the cadastral number (uknizhbe), then the certificate of ownership Sheet nepokretnosti. In fact, the buyer becomes the owner after the signing of the Basic contract of sale and registration of the court, legally - from the cadastral registration.
When buying property in Montenegro for the name of the individual, the payment for the property to the Seller may be carried out:
* By transferring funds to a private foreign currency account of the Seller in Montenegro with the private foreign currency account to the Purchaser in Montenegro, while the Bank provided support payment (contract, other documents).
* By transferring funds from his private account in the Russian Federation directly to the account of Seller (other property) - for this purpose in the Russian bank is required to provide the preliminary contract of sale of real estate to a Russian translation.
* By the transfer of funds through intermediaries - from real estate agency in Montenegro, or a lawyer. To this end, a Russian bank is required to provide an appropriate agency agreement with a Russian translation.
On his private account of an individual in Montenegro funds may go through:
1) notification of the Tax Inspectorate of the Russian Federation to open an account abroad, giving notice to the bank and transfer funds from his private account of the individual in Russia on his private account of an individual in Montenegro.
2) Transfer to your private account of an individual in the Montenegrin daily not more than 4000 Euro, since small amounts are not subject to any control (the main drawback is the time - perhaps only small purchases). Besides regular transfers may raise suspicions at the bank.
3) Withdrawals by card of a Russian bank in Montenegro and entering them into his private account of an individual in Montenegro. The main disadvantage (can be solved with the bank) - Bank limits on spending with the card (daily, weekly, monthly).
4) Shopping Travel Check in Russia and their cashing in Montenegro, with subsequent submission to his private account of an individual in Montenegro.
5) the transfer of funds to the private account of an individual from outside the Russian Federation from the account of any natural or legal person-non-residents, the calculation of which is produced in the territory of the Russian Federation agreed by the parties.
6) involvement of other non-residents for the payment of a Russian citizen from the territory of the Russian Federation (non-resident fees are not subject to the law on currency regulation).
When buying property in the name of a legal entity in Montenegro, the payment for the property to the Seller only with the account of the Montenegrin legal entity.
At the expense of the Montenegrin legal entity funds may fall in two main ways:
1) In order to increase the share capital or a company with a registered capital. The funds can be transferred to the legal entities in Montenegro:
* A private individual's account of the parent company in Montenegro;
* A private individual's account - the founders of the Montenegrin company in Russia (for this purpose in the Russian bank will need to provide draft foundation documents of the Montenegrin company, or documents to increase the authorized capital of Russian translation).
Increase in share capital is not always desirable scheme, as is connected with an increase in the amount of liability of the company.
2) In order to provide a loan from the parent or other person. In this case the funds can be transferred to the account of the Montenegrin legal entity in order to provide a loan from the parent or other person:
* A private individual's account of the parent company in Montenegro;
* A private individual's account - the founders of the Montenegrin company in Russia (for this purpose in the Russian bank will need to provide a loan agreement with his Montenegrin company with a Russian translation);
* From the account of another person, not a founder of the company in Montenegro.
In the future, if it becomes the issue of withdrawing money from Montenegro, a loan is very convenient. By law he can not be interest-free (and the percentage may be much lower than the refinancing of the National Bank of Montenegro). Therefore, we can recommend to the percentage at 10.7%. The amount of such interest, as well as including the amount of penalties for non-payment of the loan on time, you can send money to Russia. More withdraw money, you can use an agency agreement, where the foreign company is Customer (Principal) and Montenegrin - Agent that works on its own behalf but on behalf and at the expense of the Principal. Taxation in this case, subject only to the amount of commission of the Montenegrin company. Other funds may be transferred tax-free basis from the country.
Note 1: For any operation involving the Russian banks are fraught with the requirement to provide documents about the origin of funds and evidence of payment of taxes.
Note 2: The Montenegrin banks cashing funds charge a commission on average at a rate of 2-3%. Commercial Bank Budva charge a commission 0,5%. Does not charge any commission Opportunitybank.
In what place, what object to choose, how to check all the necessary documents, their legal correctness and purity? All these questions need answers before the conclusion of the transaction, not its process. Planning to purchase property in Montenegro, primarily in order to save money, nerves and time in the future - to choose their partners (real estate), which will give complete and accurate advice on all matters related to property acquisitions, possible risks and the hidden flaws which are not always visible year-round.
Recall that, in most cases, when buying apartments in new buildings, the agency commission is already included in the price of the developer, therefore, acquiring property through an agency, you do not lose money, but on the contrary, there is a free helper and advisor. In addition, you should not run on most developers in choosing the right option, as the agency will provide you with all the objects from different developers.
* This is a real estate agency, having adequate knowledge, relationships, opportunities and competent staff, can make the most important thing you need when buying - is to examine the documents.
The process of buying and checking of documents in Montenegro is quite different from the Russian: many facts emerge after the transaction, the process of obtaining a sheet of real estate to the new owner or a resale.
Of course, many burdens can be removed, the objects to legitimize, but any such procedure entails additional time and cost. In Montenegro, there are many objects that have not yet legitimized, some were built without proper building permits, some without regard to building codes and requirements of urban development plans, some even built on land where there are no town-planning decisions or objects having a number of charges, such as unpaid utility bills, the availability of mortgages, etc. All of these objects - this "problem property".
Most recently, in February 2010, the newspaper «Vijesti», has been written about the fact that the Montenegrin government represented by the Minister on arrangement of space Branimir Gvozdenovic soon sign a memorandum of understanding under which will be declared a moratorium on the demolition of all facilities, illegally constructed until August 31, 2008 As a result, subject to payment of penalties and other obligatory payments will be pardoned about 3 thousand illegal objects. At the same time under the "building amnesty will not get the objects that do not meet the criteria for seismic building codes Montenegro, the objects that were illegally built after the entry into force a new law on construction and facilities on site which should be pave the streets, roads, social facilities, etc.
More stringent measures taken against illegal constructions in the national parks: "Skadar Lake", "Durmitor" and "Lovcen, where within 5 days after they are discovered by the inspectors, the organizers of the construction can be imprisoned for up to 5 years. Forecasts are not very comforting when you consider that in Montenegro, approximately 100 thousand objects mainly in Podgorica and the coast.
The process of verification of documents, rather laborious, and consists of:
1) Establishment of the real estate owner and his property rights. Seller is not always the current owner of the property - often the case that the true owner has not filed the required application for renewal in the inventory. If the property is not included in the inventory book, you must collect all the original documentation, ranging from one to the current owner of the marks of the tax inspection on the regular tax on transfer of absolute rights, etc. Oblige and monitor the introduction of the object in the book seller.
2) scan for the existence of liens (mortgages) or other encumbrances. If there is such encumbrances and included in the inventory books, require and monitor the Seller to pay off the mortgage. If the seller does not pay its debts - this will be the responsibility of the new buyer.
3) Scan the payment by the Seller of municipal payments during construction, a permit for the construction of already constructed objects (houses, flats), etc. If necessary - test solutions on inheritance.
4) checks paid at the time of signing the contract: electricity, water, sewer, cable television, telephone, property tax and sales tax on real estate.
5) undertake the necessary measures to eliminate the possibility of double sale.
Good luck!