Estonia » The Purchase Process

If the buyer decides to proceed with the sale, he will have to sign 'reservation agreement' to be drawn up between the developer and the buyer. This is a preliminary contract which formally documents the intended purchase and explains the deposit amount and the final price payable on completion. It usually includes compensation clauses in the event of either the buyer or seller withdrawing from the contract prior to the completion date.

A deposit amount, usually amounting to 10% - 20% of the final purchase price, is payable once the reservation agreement is signed. The reservation agreement does not normally need to be notarised and can be dealt with and signed without any need to visit Estonia.

When the property is complete, the buyer has a certain time period to check the property and to notify the developer of any outstanding problems with the development prior to completion.

If all is well with the property, the final balance of the purchase price is payable to the notary in time for the agreed completion date.

The buyer must attend the notary on the completion date to sign the purchase contract. The contract is normally in Estonian though translations into English can be arranged for a small fee.

Following completion, the buyer must pay a stamp duty charge to the local authority before the purchase agreement is released to the buyer.