Notarial acts concerning property
Step by step towards a successful deal
Decisions about property are often the transactions with the greatest legal and financial implications in a person’s life. This is why the law stipulates that property transactions must be certified by a notary.
About the notarial act
A notary checks the legal background of the transaction, explains the content and consequences of the contract to the parties, and ensures that the necessary entries are made in the Land Register. The notary’s role is to protect all parties to the transaction and to help prevent future disputes.
Before the transaction
Before entering into a transaction, it is worth considering what you intend to do with the property and what terms you wish to agree on with the other party. A clear initial agreement helps to avoid any surprises later on.
Advice for sellers of immovable property
Before entering into a transaction, consider the terms on which you are prepared to sell the property. It is important to agree on, for example, the price, the payment terms, the date of delivery of the property, and which items or rights are included in the sale.
Be honest with the buyer and explain the condition of the property as thoroughly as possible. You must also disclose any known defects and circumstances that may affect the use of the property, such as structural problems, damp, mould, the absence of a use and occupancy permit, access issues, a lease agreement, disturbances caused by neighbours or other restrictions. Any known defects should also be recorded in writing so that they can be substantiated in the event of a dispute.
If anything remains unclear, please consult the notary.
You must not sign a contract until its contents are entirely clear and correspond to your intent. Once you have signed a contract at the notary’s office, it cannot be easily amended afterwards. Any amendments to the contract must also be made in the notary’s office, and the buyer must agree to all the amendments.
Advice for buyers of immovable property
Be sure to inspect the property before completing the transaction and, if possible, assess its technical condition as well. The notary checks the legal aspects of the transaction, but does not carry out a building survey.
Before signing the contract, make sure you clarify all the circumstances that may affect the use or value of the property. For example, it is worth checking whether the building works are lawful, whether a use and occupancy permit has been granted, whether access to the property is guaranteed, whether there are any servitudes or other restrictions on the property, and whether the property you are buying actually corresponds to what you want to buy.
If you’re buying a property with a mortgage or jointly with someone else, make sure you consider the financing, ownership shares, mortgage repayments and how costs will be shared. You must not sign a contract until its contents are entirely clear and correspond to your intent. Once you have signed a contract at the notary’s office, it cannot be easily amended afterwards. Any amendments to the contract must also be made in the notary’s office, and all parties must agree to all the amendments.
If anything remains unclear, please consult the notary.
The notary is obliged to ascertain the source of the funds used in the transaction. This means that the notary must gather information about the client, the purpose of the transaction and the source of the funds in order to understand the client’s activities and to ensure that the circumstances of the transaction do not indicate, for example, money laundering, terrorist financing or any other unusual transactions.
How a property transaction is conducted at a notary’s office
Here you will find an overview of how to carry out a property transaction safely and clearly at a notary’s office.
A person contacts a notary’s office
The process begins when a person contacts the notary’s office of their choice and states what kinds of acts concerning property they would like to carry out. The details of the parties to the transaction, the details of the property and the key terms and conditions of the contract must be sent to the notary’s office. The notary does not need a draft contract.
You never have to draw up a draft contract yourself. The notary draws up the contract on the basis of the information provided by the parties and the data verified from the registers, and adds the relevant legal explanations.
If you are buying a property with a mortgage, the bank will often suggest possible times for the notary’s appointment and will then forward the initial details to the notary’s office itself. However, please keep in mind that you are always free to choose which notary you wish to visit. It is important that the parties reach an agreement on which notary to use for the transaction.
The notary checks the details
The notary checks the entries in the Land Register, the owner’s details, mortgages, restrictions, servitudes, rights of use, and the active legal capacity and right of representation of the parties. When authenticating a transaction, the notary also verifies the identity of the parties.
If necessary, the notary will clarify whether the spouse must also be involved in the transaction, or whether the consent of a co-owner, guardian, court, bank or another person is required. The notary will inform you of this and explain what to do next.
The notary ascertains the source of the funds used in the transaction by requesting information from the buyer and, if necessary, gathering further information themselves.
The notary ascertains the actual intent of the parties
The notary finds out what the parties actually wish to achieve. This is important because sometimes a different legal solution may be better suited to a person’s intent than the one they initially requested from the notary.
For example, it may become apparent that the parties need to clarify the payment terms, the delivery of assets, the use of common ownership, the deletion of a mortgage or other important terms.
The notary draws up the contract and sends it for review
The notary records the agreement of the parties in a legally correct manner. The contract must clearly set out the object of the transaction, the price, the payment terms, the delivery, the obligations of the parties and any other relevant terms and conditions.
The notary sends the draft contract to the parties for review before the authentication of the transaction. You should read the draft carefully and ask the notary for clarification on anything that remains unclear. If you can think of any further terms you would like to include in the contract, you should inform the notary of this at the earliest opportunity. The other party should definitely be informed of this as well, as the terms of the contract must be discussed and agreed between the parties. This allows the notary, if necessary, to draw up a new draft contract or to clarify what still needs to be discussed with the parties before the contract is signed.
The contract is only signed in the presence of a notary at the time the transaction is authenticated.
The transaction is authenticated at the notary’s office or via remote authentication
The notary explains the content and consequences of the contract when authenticating the transaction. During the authentication process, the notary asks further questions to ensure that the parties understand what they are signing and that the contract reflects their actual intent.
The notary is impartial when authenticating a transaction. The notary’s role is to protect the weaker party to the transaction and to ensure that the terms of the transaction are clearly understood by both parties.
The notary does not represent the buyer, the seller, the bank or the developer, but explains the details of the transaction to all parties and draws their attention to the risks involved.
The contract is signed by all parties to the transaction and by the notary. In the case of remote authentication, the signing takes place digitally online and in the case of hybrid authentication, those present at the office sign the contract on paper, while those participating online sign it digitally.
The notary submits the details to the Land Registry Department
Once the transaction has been authenticated, the notary submits the necessary details to the Land Registry Department of the court. The court verifies the information submitted and makes an entry in the Land Register. The buyer becomes the owner of the property once the transfer of ownership has been entered in the Land Register. The parties will be notified of this by email.
Frequently asked questions
Will the notary draw up the contract, or do I need to bring it with me myself?
The contract is drawn up by the notary. The person provides the notary with information about what they would like to do and the terms that have been agreed. The notary draws up the contract on the basis of this information and the data verified from the registers, and adds the necessary legal explanations to the contract.
Can property contracts be concluded via remote authentication?
Property contracts can be concluded via remote authentication. Please inform the notary’s office as soon as possible that you wish to use remote authentication or hybrid authentication.
You can find further information on remote authentication and hybrid authentication on the remote authentication page.
What must definitely be set out in the contract?
The notary makes sure that contracts contain all the information required for a legally valid transaction and for making an entry in the Land Register.
The contract should set out everything that is relevant to the specific transaction. The seller and the buyer often say that one issue or another ‘has been agreed on between them’. The contract of sale drawn up by a notary is, in fact, the agreement between the seller and the buyer, and to prevent any subsequent disputes, it is important that all agreements concluded between the seller and the buyer in connection with the sale of the property are set out in the contract drawn up by the notary.
Is the seller obliged to disclose any defects in the property?
Yes. The seller must inform the buyer of any defects of which they are aware and of any circumstances that may affect the use of the property. For example, the seller should mention any structural problems, damp, mould, the lack of a use and occupancy permit, access issues or other restrictions.
Does the notary check the technical condition of the property?
No. The notary primarily checks the legal aspects: the owner, encumbrances, restrictions, the right of representation, the necessary consents and the information in the register. A notary does not carry out a building survey or inspect, for example, the condition of the pipework, roof, electrical system or structural elements.
What documents do I need for a property transaction?
The need to submit additional documents becomes apparent during the preparation of the transaction, and the notary will inform the parties of this.
Does a contract for the sale and purchase of property always have to be notarised?
Yes. A property sale and purchase transaction must be notarised. A simple written agreement or the transfer of money is not sufficient, as the buyer only becomes the owner of the property once the entry has been made in the Land Register.
Is a spouse’s consent required to sell a property?
It depends on whether the property is part of the joint property or separate property of the spouses. Property purchased during marriage may be considered joint property even if only one spouse is listed as the owner in the Land Register. As a general rule, spouses may carry out transactions relating to joint property jointly. This means that when selling a property, both spouses must appear before a notary at the same time, or one spouse must authorise the other to carry out the transaction; however, this authorisation must also be notarised.
If we buy a property jointly, does a larger payment give a larger share of ownership?
Only if this is stated in the contract and recorded in the Land Register. In the case of common ownership, it is the legal share entered in the Land Register that is important, not who actually paid more.
Can a co-owner sell their share without the consent of the others?
As a general rule, a co-owner may sell, gift or pledge their legal share without the consent of the other co-owners. Other co-owners may have a right of first refusal in respect of the share being sold, but this may only be exercised after the sale has been concluded, in accordance with the procedure laid down by law.
What is apartment ownership?
The owner of an apartment ownership owns both the apartment (or premises used for another purpose) and a legal share of the rest of the building and the land on which it stands.
Information on whether the apartment ownership also includes, for example, a room in the basement or a parking space in the building can be found in the Land Register.
What is common ownership?
If the property has not been divided into separate apartment ownerships but is held in common ownership by the owners, it should be kept in mind that, in this case, it is not possible to sell a specific apartment. Only a legal share (for example, ¼) of the entire property can be sold in this case.
The co-owners may well have reached an agreement as to which of them will be using the premises, but this does not transform the ownership of the premises in use into an apartment ownership. If a note regarding the terms of use has been entered in the Land Register, such an agreement is also binding on all subsequent owners – all future owners must also comply with agreements regarding the use of specific premises, and changes may only be made by mutual agreement between all the parties.
What is a procedure for use?
A procedure for use is the agreement of co-owners on how the shared property is to be used. For example, the parties may agree on who will use which part of a house, which parking space, which outbuilding or which part of the yard. In order for the agreement to be binding on future owners, it should be entered in the Land Register.
What is a right of superficies?
The right of superficies is a right entered in the Land Register, which allows a person to own a structure on another person’s immovable property.
The Land Register provides information on the term for which the right of superficies has been established (up to a maximum of 99 years).
All structures situated on a plot of land do not always belong to the holder of the right of superficies (or form an integral part of the right of superficies). The contract for establishment of the right of superficies specifies which structure is part of the immovable property and which is part of the right of superficies. Furthermore, in the case of the right of superficies, you should keep in mind that in some cases, the consent of the owner of the immovable property is required in order to acquire such a right.
In the case of a right of superficies in apartments, the right of superficies is divided into individual rights of superficies in apartments. This is a right established for a specified term.
What is a mortgage?
A mortgage is a security established on immovable property. If an obligation secured by a mortgage is not met, the lender may be entitled to demand the sale of the immovable property. It is therefore important to understand exactly which obligations the property secures when you establish a mortgage.
How is the notary fee calculated and why do you have to pay both the notary fee and the state fee?
In the case of the sale and purchase of property, the notary fee depends on the sale price and the value of any existing or future mortgages. In addition to the notary fee, a state fee must be paid in the case of property transactions, as after the authentication of the transaction, the notary submits the necessary details to the Land Registry Department of the court, which verifies the details and makes an entry in the Land Register.
Why does a notary ask a property buyer for documents proving the source of the funds?
The notary is obliged to ascertain the source of the funds used in the transaction. Therefore, the notary asks the buyer of the property to complete an anti-money laundering form first of all. If the notary requires bank account statements or other details in addition to the information provided in the form, these must be sent to the notary. The notary is not allowed to authenticate a transaction until the origin of the funds used in the transaction is known to them and is reasonably credible. If the notary requests this, you must send them bank account statements, details of contracts, etc. If you are buying property with a bank loan, the majority of the funds used in the transaction will be clear to the notary, but the source of the self-financing portion must be explained to the notary and also substantiated.
Can a notary refuse to authenticate a transaction?
Yes. If the notary has reason to believe that a transaction is contrary to the law, that a person does not understand the nature of the transaction, that they are being pressured, or that the transaction may be detrimental to the weaker party, the notary may refuse to authenticate the transaction.
Will a lease agreement remain in force?
If the landlord transfers the immovable property after it has been delivered to the tenant, the landlord’s rights and obligations under the lease agreement are transferred to the purchaser of the property.
Notary fee calculator
In the case of the sale and purchase of property, the notary fee depends on the sale price of the property and the value of any existing or future mortgages.
Fees for making copies may be added to the notary fee.
Estimated cost of the transaction
- Notary fee
- VAT
- State fee
- Total
Read and see more
Articles and information material
Article by Tallinn Notary Priidu Pärna in Äripäev
Article by Tallinn Notary Heleriin Kulla in Äripäev
Article by Viljandi Notary Virgi Ojap in Postimees
Contact and help
If you have agreed on a transaction or need advice, please contact a notary.