Procedure Of Acquisition Of The Real Estate In Finland

The rights of foreigners to purchase of the real estate in Finland

Under the current legislation foreigners have the right to get a real estate in Finland (houses, apartments, the ground, commercial objects) with registration of the property right both on physical, and on juridical person. But Aland Islands are unique exception: for their purchase the consent of the Finnish government is required. However, offers of the real estate in this autonomy meet seldom enough.

Reliable legal protection is guaranteed equally to all foreign investors and owners of the real estate.

The beginning of purchase

For purchase of object of the real estate, buyers, usually, address in agency, which should have the license for the activity. The seller and the agent conclude the contract, on which the intermediary uses the exclusive right to sale of the given real estate. In it there are the basic data on the real estate, the price and terms of payment.

In case of an independent choice the buyer of object, for example, on this or that site, the transaction can be lead far off, having addressed in agency and having informed date of arrival for its registration. However the majority of buyers prefer to arrive before the conclusion of the transaction on a place and to examine the object personally.

Calculations between the seller and the buyer are more comfortable to carry out by bank translations. Any capable foreign citizen arriving to Finland for long enough term can open the account in the Finnish bank. For this purpose it is necessary to show the constant or time sanction to stay in Finland and to specify the address (both to Finland, and in the country, whence he has arrived). Other restrictions for foreigners it is not stipulated.

The account opens in euro. At formation on the account of negative balance, in three working days, bank sends the client the notice with the request to put on the account the recommended minimal sum. In case the account does not replenish, the bank sends renewed notifications in 18 and 33 working days, then to the owner of the account the penalty is exposed at a rate of 5 euro for each notice.

The transaction

The buyer should find out through institutions of local government about the right of use of the ground area and the constructions on his territory. Up to the conclusion of the preliminary contract it is possible to agree with the seller with check of a condition of the real estate on presence of defects. Thus the parties coordinate, who and as pays compensation to the expert. The responsibility for defects is assigned to the seller. Then, at presence of the notary, at agency, the seller and the buyer sign the preliminary contract.

In the preliminary contract the object of the real estate is identified, the sum of the transaction, the schedule and a way of payment, date of transition of the property, the size of the penalty for the back payment, the sum and conditions of the deposit is underlined. The deposit makes nearby 4 % from the sum of the transaction (as a rule, not less than 2-5 thousands euro) and is paid with a condition, that at refusal of the seller he returns the specified sum to the buyer, except for a case when the transaction is not made on fault of the last one: in this case the deposit remains at the seller.

Transition of the property right in Finland is carried out through local city court (court of the first instance), on the location of the object of purchase where, after payment by the buyer of the tax to registration of the property right, documents move on the statement. After that, the bill of sale is signed at presence of the notary - the basic contract of sale and purchase. The seller, the buyer and the notary sign the contract. By day of the fulfilment of the transaction the buyer in advance should transfer all sum of a cost of the transaction into seller’s account.

After signing the bill of sale, the right of possession of the object of the real estate passes to the new proprietor. Usually, all procedure of sale and purchase borrows about two weeks.

Extra charges

Getting the real estate in Finland, the buyer should pay the tax to registration of the property right, at a rate of 4 % from the cost specified in the preliminary contract. Services of the notary and the stamp duty are approximately 0,05-0,1 %. The seller pays the commission to the agent.

In cases, when the seller of the real estate is the juridical person, the tax to registration of the property right joins in cost of habitation and makes 1,6 % from all cost of the transaction.

Purchase of an apartment in condominium

According to the Finnish laws, apartment houses are the property of housing joint-stock companies. Having bought the certain quantity of actions, the person becomes the owner of an apartment in the house, corresponding these actions. The earth, on which there are buildings, is the property of a society or is rented.

The housing joint-stock company conducts the register of proprietors of actions. At purchase of actions, it is necessary to guide some information about the organization: to check up results of financial activity for the last years, presence or absence of bank debts, to find out, whether taxes and other payments are paid, whether the decision on major overhaul or other expensive operations which considerably will increase charges of the new owner is not accepted at assembly of a society.

It is necessary to consider such factor, as obligatory general house charges, for personnel’s payment, operating repair, dust’s export, the maintenance of office accommodations. Each housing joint-stock company itself defines the sum of the general house charges during annual assembly of shareholders.

Ownership of property through joint-stock company is attractive from the point of view of the taxation, because the tax to the property is not paid.