Features of purchasing real estate in Estonia

Foreign citizens can purchase urban real estate in Estonia without any restrictions. However, the following conditions apply to the purchase of land and houses:

• Foreigners do not have the right to acquire land and houses located near state borders (both maritime and land).

• Individuals are not allowed to purchase real estate on the Estonian islands. Legal entities have such an opportunity only on the condition that the board of directors of the company includes citizens of the European Union.
• Individuals do not have the right to buy land and forest plots with an area of ​​more than 10 hectares.

As soon as the buyer has decided on the choice of the object, the reservation of the property takes place. This is necessary so that the seller does not sell the object to another buyer. For the reservation, a contract is drawn up in Estonian, containing information about the address of the object and its cost, the amount of the deposit and payment terms.

After signing the contract, the buyer makes a deposit in the amount of 10-20% of the value of the object. If the buyer changes his decision to purchase, he pays a fine of 10% of the deposit amount. The reservation is valid for 15 days. During this time, it is necessary to conclude a contract of sale.

At this stage, the notary checks the object for the presence of a mortgage and other undesirable factors. If no problems are found, a sales contract is concluded in Estonian. 

The buyer has the right to demand a transfer. After signing the contract, the buyer owns the object, but is not yet its owner.

Payment is made by bank transfer to the account of the notary, as he acts as a guarantor of the transaction. 

After the transfer is made, the buyer fills out a form in which he indicates the origin of the funds

After signing the sales contract, the notary sends the document for registration in the land register. After registering in the book, the seller and the buyer receive an extract by e-mail, which confirms the transfer of the property to the new owner. 

This notice can be saved in PDF format. From this moment on, the buyer is considered the full owner of the property and can dispose of it at his own discretion.