Buying an apartment or a piece of property
Are you looking for a new home or perhaps a summer cottage? You've come to the right place! Being the leading real estate agency means we have the most options to choose from. Why don't you have a look at our objects for sale?
Renting a home
We have many different options to choose from, ranging from one-bedroom apartments to entire houses. Why don't you start by having a look at our homes to rent?
Selling an apartment or a piece of property
Are you planning on selling? Our real estate agents are more than happy to help you!
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The legal basis for the ownership of apartments and physical pieces of land is unique in every country and Finland makes no exception. But you need not worry, because we have put together a brief overview of the two most typical forms of ownership: apartments and real estate property.
In Finland the ownership of apartments is commonly arranged through a housing company. In such a case you own shares in the housing company which give you the right of occupancy of a specific apartment in a residential building.
Banks and financial institutions accept housing company shares as collateral for mortgages.
The housing company usually takes on debt to finance maintenance and renovation work. The shareholder is liable for any debt attributable to his/her shares. This is the reason why there sometimes are two different prices shown for apartments for sale: these are the sales price including the share of debt, and the the sales price excluding the debt.
The housing company may in its Articles of Assosciation stipulate rules for that are binding for all shareholders. Typically, this includes collecting a monthly managing charge that is used for running and maintaining the property and the building(s).
The housing company keeps a record of its shareholders. As of 2019 the list of shareholders and the physical shares are being transferred into the Residential and Commercial Property Information System of the National Land Survey of Finland.
The buyer pays a transfer tax of 2% of the price of the apartment including the share of debt.
The other common way of ownership is through a real estate property. This means that you own a physical piece of land and any buildings upon it. Typical properties include detached houses, summer cottages, and plots of land. Some semidetached houses also are organized in the form of a real estate property.
Banks and financial institutions accept mortgage deeds as collateral for mortgages.
However, unlike a housing company, the real estate property cannot take on any debt of its own. Any need for external financing for e.g. renovations must be arranged through a personal mortgage or a loan.
As the property cannot take on any debt of its own the sales price never includes any debt.
An important document is the certificate of encumbrances which lists e.g. possible claims or liabilities against the real estate property.
Buying, selling and owning a piece of property is regulated through the Code of Real Estate and follows more formal procedures than the sale of an apartment. Ownership of all real estate properties is registered by the National Land Survey of Finland.
Please note that non-EEA or non-EU buyers need a permit to buy a real estate property in Finland.
The buyer pays a transfer tax of 4% of the sales price of the real estate property.
As this is just a brief overview, there are many more specifics and details that are important to keep in mind. Our real estate agents are more than happy to help you with any questions you may have!
Due to legal reasons Kiinteistömaailma provides official documents (such as sales deeds) in Finnish or Swedish. The documents may be translated into English, but the Finnish or Swedish original version is the only legally binding one.