Sales information
Nowadays there are a lot of new projects, apartment buildings are sold out when construction is still underway and the house is not even completed. The advantage of this is a wider selection and the opportunity to have a say in how the interior finish of your future home will look like. In order words, sales and purchases are conducted according to a plan. Here you will find information on how to proceed when choosing your home based on a plan, how reservation works, how to formalise a purchase, and other important information that should be taken into account when purchasing real estate.
When purchasing a home in a building under construction
The first step is to meet our sales manager and examine the project and the plans thorough. Since the actual building does not yet exist and thus cannot be visually examined, it is important to familiarise yourself with the project on paper.
If the interest to buy persists, the purchase is formalised in four stages:
1. Verbal reservation – one week
Verbal reservation – one week. During this time, you can weigh the options and in necessary, consult with the banks on financing.
2. An unattested written agreement of reservation
An unattested written agreement of reservation shall be concluded in our office. . The agreement of reservation is valid for three weeks and requires a down payment of €3000. During these three weeks, buyers can still consider the options and consult with the banks – while being certain that the desired apartment is reserved for them.
3. A contract of sale under the law of obligations
A contract of sale under the law of obligations, is signed at a notary during the two weeks of the reservation period. This contract requires a payment of 20% of the purchase price. The previously paid sum of reservation shall be included in this amount. The contract under the law of obligations cannot be disclaimed, which means that in this stage, the buyer must be certain of their interest to buy as well as their further financing. An initial notation will not be set in the land register with the contract under the law of obligations.
Choice of interior finish after the conclusion of the contract under the law of obligations
If the construction phase of the building allows, and the deadline for the choice of interior finish has not passed at the moment of concluding the contract under the law of obligations, then the client has the right to select an interior finish solution for their apartment from the options offered by the developer, after the contract is concluded.
Transfer of construction works
When the building and the apartment are completed, the seller shall inform the buyer of this, after which the buyer must arrive at the site to inspect the apartment. An inspection of the structural aspects of the apartment will be conducted, during which the parties will conclude a deed that includes any potential defects that are to be eliminated within a time limit agreed upon.
4. Concluding the real right contract
Concluding the real right contract. at a notary takes place once the building and the apartment are completed and any potential defects have been eliminated. The rest of the purchase sum is paid by way of the real right contract and the possession is transferred to the buyer. If you take up a loan, your bank will also participate in the transaction.
Transfer of the possession
After the conclusion of the real right contract, the possession will factually be transferred to the new owner within five working days. An instrument of delivery and receipt of the apartment is signed in the apartment. By way of the instrument, the owner takes over the apartment along with the keys and documents that come with it. With this instrument, the risk of the potential destruction of the apartment is also transferred to the buyer.
Becoming an owner
The buyer will officially become an owner after the corresponding entry is made into the land register. This generally happens within a month. The land register will send an extract from the register to the new owner to confirm that he or she has been entered into it as the owner.
When purchasing a ready-made home
A clear advantage of purchasing a ready-made apartment is that you are able to see what you are purchasing. In this case, however, the choice of interior finish has been made for you by somebody else and the selection of vacant apartments might no longer be that good. This is because nowadays more and more great apartments are purchased based on the plans.
If you have familiarised yourself with an apartment and are interested in buying it, the purchase is formalised as follows:
1. Verbal reservation – one week
Verbal reservation – one week. During this time, you can weigh the options and in necessary, consult with the banks on financing.
2. An unattested written agreement of reservation
An unattested written agreement of reservation shall be concluded in our office. . The agreement of reservation is valid for three weeks and requires a down payment of €3000. During these three weeks, buyers can still consider the options and consult with the banks – while being certain that the desired apartment is reserved for them.
3. Conclusion of a real right contract at a notary
Conclusion of a real right contract at a notary. The entire purchase sum will be paid pursuant to it. If the purchase is to be financed via a bank, your bank will also participate in the transaction.
Transfer of the possession
After the conclusion of the real right contract, the possession will factually be transferred to the new owner within five working days. An instrument of delivery and receipt of the apartment is signed in the apartment. By way of the instrument, the owner takes over the apartment along with the keys and documents that come with it. With this instrument, the risk of the potential destruction of the apartment is also transferred to the buyer.
The sale price and its composition:
Included in the price
- The completeness of the apartment and the building according to the design and interior finish package;
- Fees for connection to the water supply and sewage;
- Fees for connection to the power supply;
- Fees for connection to the heating system (central, gas or other, depending on the region);
- Telephone, cable connection and security alarm system.
Not included in the price of the contract:
- The notary’s fee and state fee related to concluding the contract of sale;
- Fees for subscription to telephone and data communication services, cable television networks and security alarm systems;
See the terms of sale under each project for specific information.
Financing
When purchasing a new home from us, you do not have to present a valuation report to the bank*.
We will draw up a sales offer accepted by our partner banks for you.
Useful information:
Expenses related to purchasing and formalising a home
The expenses that the buyer needs to take into account when purchasing a home are the notary’s fee and state fee.
These expenses are not included in the purchase price.
Both the notary’s fee and state fee depend on the value of the property purchased. See also: THE NOTARY FEES ACTand THE STATE FEES ACT.
Conclusion of a contract under the law of obligations:
Conclusion of a contract under the law of obligations:
- The majority of the notary’s fee related to the purchase-sale is paid.
- Upon depositing 20% on a notary’s escrow account, deposition expenses will be added to the sum
Conclusion of a real right contract:
Conclusion of a real right contract:
- A notary’s fee in the amount of €19.10 + the VAT shall be paid for each transfer of apartment ownership.
- A fee for depositing money (if applicable) will be added.
- Fees for duplicates.
- Forwarding a digital duplicate to the land register.
- If a loan is taken up and a mortgage is provided, a fee for the provision of a mortgage is added.
When a real right contract is entered into, a state fee will be paid for entering the new owner into the land register.
SEB Bank has a tool for calculating notary’s fees and state fees. The tool can be found here.
All expenses related to the seller’s mortgage and its cancellation shall be paid by the seller.
Need for a translation
If the buyer of the property is not a citizen of Estonia or has no command of the Estonian language, an interpreter/translator must be involved in the transaction.
Any expenses related to translating will be borne by the buyer.
It is up to the buyer to decide whether he or she wishes to have a written translation added to the original by a notary who verifies it, or whether he or she is content with the services of an interpreter.
See more and find an interpreter..
Useful links
