300-500 euro
Preliminary agreement for purchasing real estate requiring legalisation
We fix the buyer’s and seller’s intention, protect the conditional deposit and prepare a KF-Legalafy opinion on whether there is a realistic route to a future transaction and legalisation of the property.
Not every real estate property in Montenegro can be purchased immediately through a standard notarial sale and purchase agreement.
Sometimes the buyer is interested, the seller is ready to proceed and the price has been agreed, but there is a legal or technical issue: the property is not legalised, the permitting status is unclear, there are discrepancies between the cadastre and the actual condition, or it is necessary to understand whether further legalisation / regularisation is possible after purchase.
In such a situation, the main sale and purchase agreement may be premature or legally risky. However, the parties may still fix their intention through a special contractual structure — a preliminary agreement on the intention to purchase real estate with a conditional deposit.
Not every real estate property in Montenegro can be purchased immediately through a standard notarial sale and purchase agreement.
Sometimes the buyer is interested, the seller is ready to proceed and the price has been agreed, but there is a legal or technical issue: the property is not legalised, the permitting status is unclear, there are discrepancies between the cadastre and the actual condition, or it is necessary to understand whether further legalisation / regularisation is possible after purchase.
In such a situation, the main sale and purchase agreement may be premature or legally risky. However, the parties may still fix their intention through a special contractual structure — a preliminary agreement on the intention to purchase real estate with a conditional deposit.
What the service is about
KF-Legalafy prepares a contractual structure under which the buyer and the seller confirm their intention to enter into a future transaction, while the obligation to proceed to the main agreement arises only after the agreed conditions precedent are fulfilled.
The key condition is a written KF-Legalafy opinion.
In this opinion, we assess whether there is a realistic consulting, organisational, technical and procedural route for further legalisation or regularisation of the property.
The key condition is a written KF-Legalafy opinion.
In this opinion, we assess whether there is a realistic consulting, organisational, technical and procedural route for further legalisation or regularisation of the property.
What the KF-Legalafy opinion may say
The opinion may be:
Positive — the property has a realistic route for further legalisation / regularisation, and the parties may proceed to preparation of the main transaction.
Negative — the property is not recommended for purchase due to impossibility, excessive complexity or disproportionate risks.
Conditionally positive — the transaction may proceed only subject to additional conditions: obtaining documents, revising technical materials, preparing a new elaborat, obtaining consents, incurring additional costs or completing other preliminary actions.
Negative — the property is not recommended for purchase due to impossibility, excessive complexity or disproportionate risks.
Conditionally positive — the transaction may proceed only subject to additional conditions: obtaining documents, revising technical materials, preparing a new elaborat, obtaining consents, incurring additional costs or completing other preliminary actions.
What this structure gives the buyer
The buyer is not required to immediately purchase a property with an unclear status.
The preliminary agreement makes it possible to:
- fix the property, price and intention of the parties;
- provide for a conditional deposit;
- link the future transaction to the results of the review;
- obtain a written opinion on whether the property can realistically be handled further;
- withdraw from the transaction if the opinion is negative or the conditions are unacceptable;
- define in advance when the deposit is refunded, credited against the price or retained.
What this structure gives the seller
The seller receives confirmation of the buyer’s serious intention, while the transaction is not treated as final until the property and the legal structure have been reviewed.
This is particularly important where the property has an unresolved legalisation status, but the parties wish to preserve the possibility of a future sale.
This is particularly important where the property has an unresolved legalisation status, but the parties wish to preserve the possibility of a future sale.
What is included
Within this service, we may prepare:
- an initial analysis of the property situation;
- a review of cadastral data and available documents;
- identification of key risks for the future transaction;
- a written KF-Legalafy opinion;
- the structure of the preliminary agreement;
- conditional deposit provisions;
- conditions for refunding, crediting or retaining the deposit;
- conditions precedent for the future sale and purchase transaction;
- recommendations for further legalisation / regularisation of the property;
- if required, a draft main agreement or a structure for further transaction support.
Important note
The preliminary agreement does not replace the main sale and purchase agreement and does not itself transfer ownership.
The KF-Legalafy opinion is not a guarantee of any decision by a competent authority, notary, cadastre, municipality, surveyor, designer or any other third party.
Our role is to determine whether there is a realistic route to a safer transaction and further regularisation of the property, and to properly reflect that route in the contractual structure.
The KF-Legalafy opinion is not a guarantee of any decision by a competent authority, notary, cadastre, municipality, surveyor, designer or any other third party.
Our role is to determine whether there is a realistic route to a safer transaction and further regularisation of the property, and to properly reflect that route in the contractual structure.
Who this service is for
This service is suitable where:
- the buyer wants to purchase a property that is not yet legalised;
- the main sale and purchase agreement is currently impossible or risky;
- the parties want to fix the intention to proceed;
- the seller is ready to wait for the review;
- the buyer wants to protect the deposit;
- it is necessary to understand whether the property can later be legalised or regularised;
- the notary needs a clear structure for the future transaction.
The service is provided on a fixed-price basis.
The result is a contractual structure and / or a written KF-Legalafy opinion, allowing the parties to decide whether to continue the transaction, amend the terms or withdraw from the purchase.
The result is a contractual structure and / or a written KF-Legalafy opinion, allowing the parties to decide whether to continue the transaction, amend the terms or withdraw from the purchase.
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