A Guide to Buying Property in Estonia

The Buying Process

The purchase process in Estonia is fairly efficient, typically taking between 30 to 60 days, although it can be sooner depending on how quickly an appointment can be arranged with the Notary.

The Role of the Notary

The notary will oversee the transfer of ownership and ensure that it is in accordance with Estonian law. If it is not, recommendations for change will be made since the notary is financially responsible for potential mistakes or violations of the law. Once approved by the Notary, the documents are then signed in the Notary's office. Bear in mind that the notary's role is neutral. You will not be advised on any aspects of title, searches or burdens that they property may carry.

The Notary will can also handle payments for the property through their account if required. Each party will be issued copies of the contract on signing at the notary office.

Notary Fees

The most equitable agreement for paying notary fees is to divide the cost equally between the buyer and the seller. Be sure to negotiate this before the meeting. There will also be a small amount of tax [state duty] to be paid by the buyer. This amounts to approximately 0.4% of the property value and is seldom more than 1.0%.

The Contract or Pre-Purchase Protocol

The "pre-purchase protocol" is the agreement that commits the buyer and the seller to the property sale. It usually requires the payment of a deposit, set at around 10%. The pre-purchase protocol is immediately binding and under Estonian law there is no opt-out period. Once the contract has been signed, you are legally obliged to follow through on the terms of the agreement.

Estonian property purchase contracts are generally "firm sale only". In contrast to other countries where you may negotiate a property purchase conditional on getting bank finance or selling another property, it would be very rare for an Estonian property seller to accept conditions on a property sale.

Always beware of contracts that have been translated from Estonian to English. A bad translation may compromise the terms of the contract. You are legally obliged to have an accredited translator with you at the notary's office to take you through the contract and to ensure that you fully understand the terms of agreement.

To ensure that the pre-purchase protocol is legally valid, it must be signed by an Estonian Notary. Many agents however do not insist on this procedure since it incurs extras costs. However, without a formal signing at the notary's office, the terms and conditions of the contract do not have any legal sway. Deadlines may extend longer than they should and other problems may arise. As a final note of caution, make sure that the director of the agency you are working with signs the contract. In order for a contract to be valid under Estonian law, the director of the company and not the agents working for the company must sign the documents.

Don't expect to be handed the deeds of the property once the purchase has been completed. In Estonia, there are no property deeds. A notorized application is made to the Land Register to transfer the ownership of the property to the buyer in the land register book. This cannot happen until the state fee is paid. After this process, the title is legally valid. Public notice of the transfer must be published in the Official State Gazette, though this does not affect the title, which is secured after being noted in the land register book.