Property check
First the Buyer would need to select a property. Knowing local real estate market and current situation, on many occasions, our Firm’s attorneys were able to advise Clints the correct price for properties and negotiate the price. When an appropriate real state has been selected, the Buyer need to pay attention to the following things:
- The Buyer must collect and review all documents including but not limited to ownership of the property, list of registered persons, the project of the house and whether it corresponds to the constructed object as it is, permit for the living, etc. Before the Buyer purchase a property, we would advise to use a construction expert who will review the property and provide his expertise. Such expert’s analyses usually save the Buyers money. In many case after the expert conduct a research we were able to negotiate down the prove.
- The Buyer would need find out whether there has been any redevelopment or reconstruction of the property and if any then to see the permits and projects for such work that are registered with the building register.
- Another important issue is the period for vacating the property. The law allow one month for vacation of the property. However, we would advice to specify such period in the Agreement.
- The Buyer shall also receive information (copies of all unpaid utility invoices, information on any debts and obligations) that are placed on the property to be purchased.
Preparation of Documents
The Buyer and the Seller must have a sales purchase agreement file it with the notary office for notary’s review and confirmation. After the notarial review the agreement the notary appoint a time for the verification of signatures and identification of the Buyer and the Seller, after that the notary signs the Agreement and the documents delivered to the State Register.
The Seller will also be required to provide a personal ID document, if the Seller is married, then a Consent of the Spouse and a marriage or divorce certificate. For a corporate transaction the Seller would need to provide a Minutes of the Shareholders Meeting, Decisions of an authorized person of the company.
Payment of taxes
There is no property tax in Estonia. But after the notarial transaction, you need to pay a fee to the Ministry of Finance for changing the owner in the real estate register. Usually this is a small amount, which is calculated at the notary office.
Payment of Notary fees
The Buyer must pay the Notary fees for the transaction. This amount of the Notary fees depends on the price and is also calculated at the notary office.
Land taxes
In Estonia there is a land tax, which depends on the region. However if the Buyer is registered in this facility, then such buyer do not need to pay the fee. Payment is made to those who were the owner on January 1 of the current year. The tax amount is calculated by the tax department and sent to you by email.
Registration of a transaction
After the purchase and sale transaction, the notary sends the application to the real estate register, and the judge who works in this register will enter the new owner into the register and remove the old one. The same judge registers the mortgage, if necessary. After this you become the owner of the object
Attorneys of our Law Firm in Estonian will provide legal services, draft and collect all required documents on behalf of our Clients who would decide to purchase or sale property. From the years of experience in the real estate filed we do work with construction experts who on many occasions have saved quite a lot of money to our Clients.