Country Buying Guides - Estonia

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and Estonian legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf.

• The Land Register
In order to become the legal owner of a property in Estonia, as in England, the proprietor has to be duly registered on The Land Register. This process of Registration takes between one to four months. In order to be valid this transaction must be documented in writing, confirmed and notarised by a notary. There is a registration fee of 0.25% of the property value.

• The Notary Public
After your lawyer has checked the final contract of sale and confirmed that all is correct. The contract needs to be signed and witnessed by a notary in the presence of all parties. It is common for a Power of Attorney to be used, which effectively gives someone the power to sign the contract on your behalf. A notary fee is applicable and is normally between 0.5% and 1% of the property purchase price.

In Estonia this process is especially drawn out, and it can take up to one month to gain an appointment with a notary.

• The Notary Deposit Account
In Estonia it is common to use a notary deposit account to transfer the purchase price. The purchaser transfers the money into the account, before completion. Once all transactions are complete and the purchaser is in full ownership of the property the notary transfers the money to the vendor.

• Inheritance
Most foreign legal systems’ inheritance law is different to our system, hence it is extremely important to use your independent lawyer to help you make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

• Costs and Fees
Other than the Land registration fee mentioned above, the only fees left are those of your lawyer and notary unless there is a mortgage arrangement which also incurs fees.

In Assocation With The International Property Law Centre LLP