Preliminary agreement
      Corporation as contracting party in the transfer of real estate
      Asset transfer tax
      Registration of title

The sale of real estate in Finland is prescribed by the Code of Real Estate (540/1995). The object of the sale of real estate may be one or more independent real estate units, or a designated share (for example, 1/2) or parcel (for example, o.7 hectares) thereof.

The buyer should examine the documents related to the real estate in advance and request at least the following documents for viewing:

Preliminary agreement

The parties may conclude a preliminary agreement on an intended sale of real estate. The preliminary agreement may be binding on both parties or only on the seller or buyer. The same formalities of the Code of Real Estate must be observed as those concerning the sale of real estate. It is advisable to have the contents of the preliminary agreement correspond to the final deed of sale as closely as possible.

The formalities stipulated in the Code of Real Estate must be observed in the conveyance of real estate (sale, exchange and donation). In accordance with the formalities stipulated in the Code, the conveyance must be made in the following manner:

The conveyance of the real estate is attested by a notary, who will confirm the identity of the parties by means of passports, for example. Notaries include

In addition to the above, persons appointed as notaries by a district court on application (such as bank managers) may also act as notaries.

The main contents of a deed of sale are as follows:

Corporation as contracting party in the transfer of real estate

If one of the contracting parties involved in the transfer of real estate is a corporation, it must always be ascertained that the decision on the transfer has been taken by the appropriate corporate body and that the person representing the corporation is authorised to sign the deed of sale.

Decisions on the transfer of real estate are taken in the various companies as follows:

General partnership

The sale of real estate owned by a general partnership (and the purchase of real estate) requires the approval of all partners, unless the sale is related to the partnership's line of business or unless otherwise agreed in the partnership agreement. The required documents: extract from the trade register and partnership agreement, if necessary. This also applies to the purchase of real estate.

Limited partnership

The sale of real estate owned by a limited partnership (and the purchase of real estate) requires the approval of all partners, unless the sale is related to the partnership's line of business or unless otherwise agreed in the partnership agreement. The required documents: extract from the trade register and partnership agreement, if necessary.

Limited liability company

The sale of real estate owned by a limited liability company (and the purchase of real estate) requires the approval of the Board of Directors, unless the decision-making power concerning the transfer of real estate has been granted to another organ in the Articles of Association. The required documents: extract from the trade register, Articles of Association and minutes of the meeting of the Board of Directors in which the decision on the sale of real estate was taken.

Cooperative

The sale of real estate owned by a cooperative (and the purchase of real estate) requires the approval of the Board of Directors, unless the decision-making power concerning the transfer of real estate has been granted to another organ in the rules. The required documents: extract from the trade register, rules of the cooperative and the minutes of the meeting of the general meeting of the cooperative in which the decision on the sale was taken.

Asset transfer tax

The asset transfer tax payable on the conveyance of real estate is 4 % of the sale price. The asset transfer tax is payable without prompting before filing an application for title. The notification on the conveyance of real estate is made using the form VEROH 6012 confirmed by the tax administration within six months of the sale of the real estate. The assets transfer tax must be paid before submitting the notification. The buyer must present a receipt for the payment and the deed of sale. If the application for title is not filed within the prescribed time limit, the tax will be raised by 20 % for each beginning month, but not by more than 100 %.

If an estate agent is used, the agent will levy the asset transfer tax in connection with the completion of the deed of sale and remit the tax to the tax office. The estate agent will complete the tax notification form and deliver the topmost page to the buyer as proof of paid asset transfer tax.

Registration of title

When the buyer has received title to the real estate, or a designated share thereof, the buyer is liable to apply for legal confirmation of title. The claim for the title is submitted to the district court in whose judicial district the real estate is located.

The claim for title must be made within six months of the completion of the deed of sale. The claim for title must be made in writing. The title deed must be attached to the application as original or as a copy certified by the notary of a registration authority.

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