Buying Real Estate: Safety and the Notary's Role
Purchasing real estate is a significant financial commitment. In Estonia, property transactions are governed primarily by the Law of Property Act (Asjaõigusseadus). To ensure the legality and security of the transaction, notarization is mandatory under the Notaries Act.
The Role of the Notary
A notary is not merely a witness; they are an impartial legal advisor. According to § 3 of the Notaries Act, the notary must explain the legal consequences of the transaction to all parties. Their duties include:
- Verification: Checking the Land Register (Kinnistusraamat) to confirm ownership and identify any encumbrances, such as mortgages.
- Legal Compliance: Ensuring the contract adheres to all current legislation.
- Financial Security: Utilizing a notary's deposit account is highly recommended to ensure that funds are only released once the ownership transfer is legally secured.
Steps for a Safe Transaction
- Land Register Review: Always verify that the property is free from third-party rights that you do not intend to assume.
- Contract Types: Transactions often involve a preliminary sales contract (Võlaõiguslik leping) followed by a real rights contract (Asjaõiguslik leping) that officially transfers ownership.
- Handover Protocol: Always sign a handover-acceptance document (Üleandmis-vastuvõtmisakt) to record the property's condition and utility readings, protecting you from future disputes.
Mitigating Risks
It is crucial to verify the seller's authority to dispose of the property. If the property is marital property, the spouse's consent may be required under the Family Law Act (Perekonnaseadus). Furthermore, check the Building Register to ensure there are no unauthorized extensions or structural issues.
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