Long-Term Lease Of Land In State Ownership And Project Development – Practical Experiences

The use or disposal of leased land in state property during and after the lease term is controversial. The authors share some experiences in this area.

Introduction

State-owned property or property owned by a municipality may be leased for up to 90 years, subject to approval by the Parliament of Montenegro. The land may be designated for the development of tourist complexes, residential buildings, and villas, and most commonly requires financing pre-determined in the tender procedure. For land designated for the development of villas, the lessee may be granted an ownership right to the land beneath the villas and land surrounding the villas when being used for their primary purpose. In practice, the use/disposal of the leased land during and upon expiry of the lease term is the most controversial aspect of this legal structure.