Finland — Property: Legal Checks

Why this matters

Understanding the legal checks is crucial to avoid potential legal issues and to ensure a smooth property transaction.

Key facts

• Before buying, check the property's certificate of deed, certificate of encumbrances and cadastral register extract, as recent as possible; they can be requested from the seller or bought online.
• Mortgages on the property should be amortized or transferred to the buyer or the buyer's bank by agreement with the seller, recorded in the deed of sale.
• Check building permits, zoning and building rights with the municipality's building control, and compare prices with the Land Survey's purchase price register.
• Transfer tax must be paid before applying for registration of ownership; registration (lainhuuto) should be applied for no later than six months after signing the deed of sale.
• The registration fee is EUR 172 (no VAT); once registered the owner appears in the Land Information System and the property can be used as loan security.
• A paper deed of sale needs a public purchase witness; no witness is needed when the deal is made in the Property Transaction Service.

Steps

1. Obtain a title deed search — This step involves checking the land register to confirm the seller's ownership and any existing encumbrances.
2. Review the property's tax history — Ensure there are no outstanding taxes or fines on the property.
3. Check for any legal restrictions — Some properties may have specific zoning laws or other legal restrictions.