Some tips how to buy a real estate (cottage, house or land)
The sale of real estate is a formal process, according to which the contract must be made in writing and the official notary must confirm the sale. A real estate transaction can still be done online on the website of National Land Survey of Finland, and in that case a public confirmation of sale is not needed.
There are many types of real estate deals and with the same process you can buy e.g. a forest, a cottage plot, an industrial property or a single-family house with its land. This article focuses on buying a vacation home or cottage.
It is a good idea to familiarize yourself with the property's information in advance by obtaining at least the following documents, which should be as recent as possible:
Title registration note
Property register extract
Encumbrance certificate
Sufficient explanation of the zoning situation and future land use plans
An explanation of the restrictions related to forest management and felling
Reliable information about building rights and possibly related restrictions
Sales brochure (if e.g. buying from a real estate agent)
An explanation of the right of way or an idea of how to organize the matter
A report on municipal engineering, if there is one
Possibility of electricity and e.g. fiber optics
If you are buying an island cottage or just buying a plot of land and intend to build on the island, it is good to find out in advance the possible marina and the right to a boat berth, as well as the right to keep a car in the marina parking lot. In addition, matters related to the use of the road must be clarified and issues related to plowing and other winter maintenance should be outlined, for example. You shouldn't assume anything, but find out the details so that things don't come as a surprise during the shopping spree. Things can become considerably more complicated if, for example, there are no free boat spaces in the nearby harbor, or even if a boat space is arranged, but the car is not allowed to park in a legal place. If you buy a property in a densely built-up area, you should also think about how to get information about the neighbors and possible disruptive behavior, especially if peace and privacy are important things when looking for a property.
If you buy an old cottage, it is worth having a condition assessment of the buildings done by a reliable outside party. Old buildings can be lovely, but it is also possible that the house is practically in a state of disrepair and it will take more money to renovate it than to build a new one. In particular, the roof and foundations are important inspection targets, and a lot can already be deduced from the indoor air.
The deed of sale itself must be drawn up carefully and thought through precisely from the point of view of this transaction. The parties must be marked clearly in the deed of sale, and especially when buying from an estate, it must be ensured that the buyer or authorized person has the right to sell the property. In some situations, the estate authorizes one of the partners to handle the transaction, and in some cases all partners attend.
The object of the sale itself must be marked in the sale book as clearly as possible, using, for example, the boundaries of the object to be purchased from a map drawing. Naturally, the property code is part of the identification of the object of sale, and it is also important to record the surface area or an estimate of it. It is also a good idea to note the transferable land and water rights with fishing areas in the transaction book.
If there are buildings on the property, their condition should be stated as precisely as possible, and all major defects and faults should be identified. No one wants to discuss hidden defects and whether their discovery justifies e.g. repairing them, reducing the price or even dismantling the store. If you are selling an old house, it may make sense to sell and market it in demolished condition. You should also organize a viewing of the property before the sale and record the viewing itself and those present in the sale book.
The transfer of ownership and possession can be separated in time, and quite often the transfer of ownership is tied to the payment of the purchase price and the transfer of the money to the seller. Another option is to bind the transfer of ownership to the signing of the deed of sale, in which case there is no need to separately prove that the money has been transferred and it is clear in all situations who owns the property. The right of management can be tied to the risk responsibility and also ensure that the seller is obliged to maintain insurance until the transfer of the right of management and the transfer of risk responsibility. All taxes, fees and other arrears can also be tied to the transfer of ownership.
You must apply for a legal notice within six months of the sale. The public sales confirmer can start a process on behalf of the buyer. If the transaction is made on the National Land Survey of Finland's website, applying for a legal notice is part of the process. You can also apply for a legal summons later on the website of the National Land Survey. In real estate transactions, it is also good to remember that the state collects a transfer tax from the transaction, which is often paid by the buyer.
The sale of real estate is a rare situation for many, and the value of the sale is often significant and large for the parties involved. In principle, there is nothing surprising about it, and it is good that a public body (public notary) is also involved in the process to ensure that the formal regulations are met. However, you can be careful and it doesn't hurt if you can ask someone for a little advice or get your hands on old trade books, from which you can study how others have embroidered things in the past.
