Purchasing process

BUYING A HOME IN A DWELLING UNDER CONSTRUCTION

The first step is to meet with our Sales Project Manager and get an in-depth look at the project and plans. As the building is not yet finished and cannot be seen, a careful study of the project is essential.
If you are certain you wish to proceed with the purchase, it will be formalised in three stages:

1. A simple written booking agreement is concluded either in our office or by digital signature via email. The booking agreement is valid for four weeks and requires a deposit, which may vary from project to project.*During this four-week period, the buyer can prepare the financing and be sure that the apartment they want is booked. *Terms and booking fees may vary from project to project, see project for details.
2. A contract of sale under the law of obligations (VÕL, võlaõigusleping), is signed in a notary’s office or by remote authentication within a four-week reservation period. This contract requires the payment of 15% of the purchase price. (the percentage of the downpayment may vary from project to project, see each project for more details.) The booking amount already paid will be included in this amount. It is not possible to withdraw from a contract of sale under the law of obligations – this means that at this stage, the buyer must be sure of their decision and future financing. A contract of sale under the law of obligation does not create a preliminary entry in the land register!

   • CHOICE OF INTERIOR FINISHES AFTER CONCLUDING A CONTRACT OF SALE UNDER THE LAW OF OBLIGATION

     • If the construction stage of the building allows it and the deadline for the choice of interior finishes is not reached at the moment of the conclusion of the contract, the customer has the right to choose the interior finishes of their apartment from the choices offered by the developer after the signing of the contract.

   • RECEIPT OF THE CONSTRUCTION WORKS

     • When the building and the apartment are ready, the seller informs the buyer and the buyer has to come to inspect the apartment. An inspection of the structural side of the apartment is carried out, during which a report is drawn up, stating any deficiencies, which are rectified within the agreed time limit.
3. A real right contract (AÕL, asjaõigusleping) is concluded in a notary’s office or by remote authentication once the building and the apartment are ready and any defects have been remedied or duly fixed. With the real right contract, the remaining purchase price is paid and possession is transferred to the buyer. If you take out a loan, your bank is also involved in the transaction. An authorisation for use is not a prerequisite for the conclusion of a real right contract.

   • TRANSFER OF POSSESSION

     • After the real right contract is signed, the possession is transferred to the new owner. An instrument of delivery and receipt is signed, whereby the owner takes possession of the apartment and its keys and documents. The instrument of delivery and receipt also transfers the risk of possible destruction of the apartment to the buyer.

   • BECOMING AN OWNER

     • The buyer officially becomes the owner after the entry in the land register. This usually takes up to one month. An extract from the land register will be sent to the owner to prove that he or she is the registered owner.

   • APARTMENT ASSOCIATION

     • From 20xx, all new apartment buildings must form an apartment association. We will form an apartment association before the conclusion of the real right contract and as a new owner you will automatically become a member of the association. The membership fee is payable by the buyer.

BUYING AN ALREADY COMPLETED HOME

The big advantage of buying a ready-made apartment is that you can see what you are buying, but in this case someone has already chosen the interior finishes for you. In addition, the choice of available apartments may not be as good as it used to be, as the best ones were selected during construction.

Once you have looked at an apartment and are interested in buying it, the purchase is completed in two stages:

1. A simple written booking agreement is concluded either in our office or by digital signature via email. The booking agreement is valid for four weeks and requires a deposit, which may vary from project to project.*During this four-week period, the buyer can prepare the financing and be sure that the apartment they want is booked. *Terms and booking fees may vary from project to project, see project for details.
2. A real right contract (AÕL, asjaõigusleping) is concluded in a notary’s office or by remote authentication. With the real right contract, the remaining purchase price is paid and possession is transferred to the buyer. If you take out a loan, your bank is also involved in the transaction. An authorisation for use is not a prerequisite for the conclusion of a real right contract.
3. Costs related to buying a home and formalising the purchase
   The costs that the customer has to take into account when buying a home are the notary fee, the state fee, and apartment association fees. These costs are not included in the purchase price. Both the notary fee and the state fee depend on the value of the property you are buying.
   Learn more: NOTARY FEES ACT and STATUTORY FEES ACT. When entering into a real right contract, you must also pay a fee for the entry of the new owner in the land register. SEB Pank has a tool for calculating notary fees and state fees, which you can find here. All costs are calculated by the notary’s office. All costs related to the seller’s easements, the mortgage and deletion thereof, and other necessary transactions are paid by the seller.

   Need for translation

   If the buyer of the property is not an Estonian citizen or does not speak Estonian, they must involve an interpreter in the transaction. Translation costs are borne by the buyer. It is up to the buyer to decide whether they want a written translation (a notary will add the translation to the original and certify it) or just an interpretation.

   Useful links

   https://www.vandetolgid.ee/
   https://www.notar.ee/et/teabekeskus/rahapesu