DUE DILIGENCE OF REAL ESTATE IN ESTONIA

DUE DILIGENCE OF REAL ESTATE IN ESTONIA

In Estonia, the alienation of real estate directly to an investor can be carried out only as a property transaction (conclusion of a contract for the sale of real estate, see 2.3 – 2.5 for details).

As another option, an investor can acquire ownership of real estate indirectly. Instead of buying real estate outright, an investor can purchase shares in a company that owns or will acquire the real estate, and with the help of this stock deal, take on the role of the owner of the real estate.

The second option may be more efficient in terms of time and costs for the investor, provided that the transaction with the share can be carried out without notarization (see section 2.2). With this option, the investor can invest his money through a simple share purchase agreement, without going through procedures involving notaries. The purchase of real estate objects (including the involvement of a notary) will be carried out by the company whose shares were purchased by the investor.

What you need to check before buying land, a house, an apartment, or any other real estate object:

The emergence of the object and the first right of ownership. Most often, violations of the law are allowed precisely at the stage of construction and registration of property rights. That is why it is important to check how the right to build arose, the origin of the land, who built it, and on what basis, whether there were any conflicts or disputes during construction.

Analysis of previous owners. It is very important to understand the order of change of owners and who they actually are, from the very first to the last. This can be done either by analyzing all agreements of purchase, sale, donation, etc. or through the relevant registers.

What is the status of the real estate object? It is necessary to examine the documents on the basis of which the last registration of ownership took place, whether such ownership is currently encumbered by arrests or bans on registration actions, the absence or presence of legal disputes, and decisions regarding the real estate object.

Physical inspection of the real estate object.

Verification of technical compliance characteristics of permit documentation. It often happens that the previous owners changed something and did not make appropriate corrections and changes to the technical documentation, which in the future can lead to at least additional costs for the legalization of such changes, or even to the unfitness of the object for use and significant investment losses.

Based on the results of the inspection of the investment object in Estonia, you will receive a conclusion of our campaign, which will reflect all the stages of the inspection with identified shortcomings and comments, as well as an investment conclusion regarding possible risks, if any are identified.

Legal inspection of a real estate object in Estonia does not consist in gathering information from the Internet, but rather in a thorough understanding of legislation in the field of construction and experience in working with construction and court activities.