Companies and agents engaged in mediation in the real estate market will have one year, from the entry into force of the Law on Mediation in Traffic and Leasing of Real Estate, to harmonize their operations with this regulation, pass professional exams and submit requests for registration in the registry of mediators.
In ads on all platforms, agents will have to highlight information about themselves and the number under which they are entered in the register, as well as information about the location, area and structure of the real estate, and they will not be able to advertise apartments and plots for which they do not have signed contracts. They will receive mediation fees only after the work is completed or if otherwise stipulated in the pre-contract, and they will also be prohibited from asking for partial payments in advance.
These are some of the novelties in the Proposal for the Law on Intermediation in Traffic and Leasing of Real Estate, which the Government recently established. This law must still be adopted by the Assembly, but even then citizens will be able to sell their apartments, premises and plots themselves...
This regulation of the Ministry of Economic Development passed a public discussion at the end of last year, and it is planned to reduce the gray economy in real estate transactions, because the state loses a significant part of money from undeclared commissions while intermediaries work according to different standards, which creates problems for citizens and buyers. The most important items of this law are the introduction of a register in which all agents will be registered, and at the same time, those who do these jobs will be required to pass a professional exam.
Thus, only companies and entrepreneurs who are registered in the Register, which they can enter only if they are registered in the Central Register of Business Entities for these activities, will be able to engage in mediation, they will have to have at least one full-time employee who has passed a professional exam, a separate space with minimum technical conditions prescribed by the ministry, a professional liability insurance contract, and the owner and agents must not be convicted of criminal offenses against payment transactions and business operations...
Rules to the department, exams to the Chamber of Commerce
"Companies and entrepreneurs are obliged to harmonize their operations with this law and submit a request for registration in the register of intermediaries within 12 months from the date of entry into force of this law. By-laws for the implementation of this law will be adopted within nine months from the date of entry into force. The professional exam can be taken by a natural person who has a residence, approved permanent or temporary residence in Montenegro, in a country of the European Union or a member of the agreement on the European Economic Area, and who has at least level IV of the national education qualification framework. The examination is organized and conducted by the Chamber of Commerce (PKCG)", it is written in this law.
The Department of Economics, which he manages Nick Djelosaj prescribes the program and method of passing, the composition and education of the Commission for these exams, as well as the fees for the work of the president, members and its secretaries, and the cost of taking the exam itself. PKCG must provide the conditions for taking the exam no later than two months after the department determines the program, and the exam is taken in the Montenegrin language, after which certificates are obtained. The commission consists of a president and a member from the ministry, one from PKCG, and they all receive remuneration for their work.
At the request of companies and entrepreneurs, the department will enter the register, which will be a public database with names and surnames, addresses and certificates of passed exams. Those who have not passed this exam will not be able to do mediation jobs, and they will only be able to work in one company, unless their employer allows them otherwise.
It is written in the law that with the mediation contract, the agent will undertake to work on the conclusion of the deal, while the one who hired him will pay a fee for this upon completion of the obligations. The contracts will have to have all the details, that is, the amount, method and deadline for paying the agent's compensation, and in the event that its duration is not specified, it will be valid for six months. The agent will be able, with the permission of citizens, to sign a contract on submediation and transfer the work to another employee.
"The mediator is obliged to act with the care of a good businessman and to determine the general conditions of business with this law and other businesses. The general terms and conditions of business include in particular: the amount of the mediation fee, i.e. the method of determining the amount of that fee, description of the work that the mediator is obliged to perform, the type and amount of costs for additional services... He is obliged to on the website, if it has one, prominently display its general terms and conditions of business, which are an integral part of the contract. When publishing an ad, in addition to information about his name and the number under which he is entered in the register, he is obliged to publish information about the location, area and structure of the real estate. It is forbidden for an intermediary to publish an ad in connection with whose traffic he has not concluded an agreement on mediation, that is, on sub-mediation", this regulation states.
According to the new law, agents receive compensation only after the deal is concluded, or if otherwise stipulated in the pre-contract, so they are legally prohibited from asking for partial payments in advance.
Citizens who want the services of agents will have to submit the necessary paperwork and details about real estate, visit permits and pay fees for the work done. Contracts will be able to be canceled at any time without explanation and additional cost, unless otherwise stipulated in the document itself. For the damage that the agent could cause in this business, the lowest insured sum cannot be less than 20.000 euros per one insured case, or 60.000 euros for all compensation claims in one year.
Both fines and suspension
The implementation of this law will be supervised by the department of economy, that is, the market inspection. Thus, companies will have to report all data changes in the register within 15 days, establish and highlight business conditions and keep records of concluded contracts.
If they do not do this, fines for companies range from one thousand to 4.000 euros, for entrepreneurs from 500 to 2.000 euros, while those responsible for these omissions will pay from 500 to 1.000 euros.
"A company will be fined from EUR 4.000 to EUR 20.000 if it performs mediation and is not registered in the register, an entrepreneur from EUR 2.000 to EUR 6.000, a natural person and a responsible person in a company from EUR 1.000 to EUR 2.000. In addition to the fine, a measure of banning activities from 39 days to six months, and a protective measure of public announcement of the decision can be imposed," the law states.
Fines for companies that employ agents without passing an exam, enter into illegal contracts or do not comply with advertising rules are from 1.000 to 6.000 euros. Entrepreneurs will pay EUR 500 to EUR 2.000 for this, and those responsible in companies EUR 500 to EUR 1.000, and in this case, suspensions are also possible.
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