You've had a good run with your property in Estonia
. You've lived here and formed great memories. You leased it out and earned quite a lot of money. And after many wonderful years with such a perfect place, it's time to say goodbye. You may not want to part with it, but at times, there's no other choice but to let it go. The good news, however, is that you can find a new owner that will take good care of this special real estate. As long as you follow these tips on selling your property in Estonia, such as knowing the liabilities of the seller and setting a move-out date, then everything will be fine!
Free Up Some Time
When you put your property in Estonia for sale, it can take quite a long time for someone to purchase it. At times, it may even last several years. And even when a buyer does appear, the process of transferring the ownership can also take up a lot of time. Because of this, it'd be best if you free up some time for the sale. This doesn't mean focusing only on selling the place for years, as long as no one has bought it yet. But rather, when the time comes for you to start the sales process, you'll want to have more time to spare to complete it.
Turn Your Home Into An Immovable Property for Sale
Here in Estonia, real estate is often referred to as immovable property. However, if you use your real estate as your main residence in the country, such as when you move to Tallinn
, Tartu, or any other Estonian city, it's more considered your home than anything else. So just because you put your property in Estonia for sale, it doesn't mean it's already an immovable property. You need to prepare it first. Spruce it up, fix all the defects, and make it ready to go on the market. This may also mean that you need to start packing up your own stuff. Buyers will want to look at properties they can already imagine owning.
Notify The Buyer of The Property's Defects
It's only ethical that you be completely forthright when it comes to the defects of your real estate in Estonia. Though you're not required to be 100% honest with the buyer, it's better if you are. It can easily backfire on you if you don't hide certain defects and you can get into legal trouble. But what are these defects? Firstly, there are legal defects, pertaining to incorrect paperwork, incomplete documentation, and the like. Technical defects, on the other hand, refer to construction faults and anything wrong with the utilities. And there are environmental defects, such as frequent flooding during rainfall, loud noises in the area, and even air pollution. These are oftentimes beyond your control.
Know The Liabilities of The Seller
According to Domus
, a real estate firm in Estonia, the Law of Obligations Act makes the seller liable for any defects discovered in the property even after the sale. This means it's your responsibility to fix them (or rather, pay to fix them) even though you're no longer the owner. But this will only happen in certain situations. If the defect wasn't caused by the owner, then you'll be liable. Or if the contracts didn't state which party would be responsible for the defects upon completion of the sale. And of course, if you, the seller, were aware of the defects but didn't disclose them to the buyer.
Think Hard Before Signing The Pre-Purchase Protocol
Now, when it comes to signing the pre-purchase protocol, you need to think very carefully. For one thing, unlike in other countries, they don't give you a grace period after signing. Once you've signed the document, it will be legally binding. And if you ever bow out of the agreement afterward, there will be consequences. One of them pertains to the 10% deposit that the buyer paid you upon signing the pre-purchase protocol. Once you exit the agreement after signing, you'll have to pay the buyer back double the amount of the deposit they paid you.
Don't Forget To Pay The Income Tax
Among the many costs you have to pay when selling your property in Estonia, income tax
is very important. Some countries refer to it as the capital gains tax, but here in Estonia, it's your income tax. After all, just like how you earn money from working here
, you also get to earn quite the profit from selling real estate. The standard is 20% and it's imposed on the difference between how much you earned from the sale to how much you spent acquiring the property in the first place.
Set A Move-Out Date
And finally, don't forget to set a move-out date. When your notary is drawing up the contracts, insert this part. This will notify the buyer on when they can expect you to vacate the property and they can move in. It will also avoid confusion too. The moment the sale is complete, you essentially relinquish all your rights to the property in Estonia. This also means that the buyer will have the right to throw you out if they want to move in immediately. Of course, you wouldn't want that to happen, would you? Then set a move-out date!
So you want to sell your property in Estonia, right? It won't be easy but it's not exactly impossible either! Following these tips will ensure that very little to nothing will go wrong as you go through the sales process.