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Writer's pictureJanne Lämsä

Finnish property types - Real Estate (Directly owned)

Updated: Nov 28, 2024



Directly owned Real Estate


In Finland, the sale of single-family homes and two-family properties are typically directly owned; the buyer acquires both the land and the building, becoming the registered title holder in the land register.

 

Offers are binding if agreed to; parties can agree upon a breach of contract penalty, which may be up to 10% of the agreed sales price.


The The buyer can claim compensation for a hidden defect within five years of the purchase, but the claim must be made within a reasonable time after the defect is discovered.


A pre-sale inspection is common in real estate transactions, and its cost, typically around €1,600, is usually shared equally between the buyer and the seller.


The buyer is responsible for paying an asset transfer tax of 3% of the property's sales price.


While lawyers are typically not involved in the transaction process, the sale requires the sales contract to be notarized, which costs €128 per transaction, plus any notary commute costs. This expense is usually shared between the buyer and the seller.


The buyer is also responsible for paying the title registry fees, which are as follows:


  • €172 for traditional paper-based registration, plus potential bank fees if the process is handled by a bank

  • €236 if the sales contract is signed electronically on the Land Registry website (no separate notarization fee)

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