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Overview of Real Estate Owner's Rights and Obligations in Estonia
Overview of Real Estate Owner's Rights and Obligations in Estonia
This overview provides a brief introduction to real estate ownership
in Estonia, outlining the key rights and obligations every
property owner should be aware of. We have compiled the
most important legal and practical information to help both
prospective buyers and existing owners navigate the Estonian
real estate landscape with confidence.
1. Nature of Real Estate in Estonia
The Estonian real estate scene is dynamic and multifaceted,
shaped by digital innovation, sustainability values, and
changing lifestyle needs. From energy-efficient commercial
premises and city residences to tranquil nature retreats,
there is a breadth of opportunity. Whether you are an
investor, home-seeker, or luxury buyer, understanding the
rules applicable to Estonian real estate can help you navigate
the market more effectively.
First of all, upon making the purchase decision, the purchaser must be sure of what object they are acquiring and what legal form it has. As a general rule, buildings permanently connected to the land are considered to be essential parts of real estate and are not tradable separately from it. Therefore, selling a building means selling real estate. The only exception to this rule is in case buildings or structures that have been erected to another’s land as a means of exercising a right, as well in case buildings or structures that are connected to the land for a temporary purpose only.
Thus, the potential property acquirer needs to be aware of the data related to the immovable and its buildings as reflected in different state registers. In particular, the Land Register reflects ownership and restricted real rights related to the immovable; the Land and Spatial Development Board web map reflects the physical data of the real estate (area, intended use, boundaries, cadastral unit); and the Register of Construction Works contains the technical data of buildings and structures, building permits and use authorisations.
First of all, upon making the purchase decision, the purchaser must be sure of what object they are acquiring and what legal form it has. As a general rule, buildings permanently connected to the land are considered to be essential parts of real estate and are not tradable separately from it. Therefore, selling a building means selling real estate. The only exception to this rule is in case buildings or structures that have been erected to another’s land as a means of exercising a right, as well in case buildings or structures that are connected to the land for a temporary purpose only.
Thus, the potential property acquirer needs to be aware of the data related to the immovable and its buildings as reflected in different state registers. In particular, the Land Register reflects ownership and restricted real rights related to the immovable; the Land and Spatial Development Board web map reflects the physical data of the real estate (area, intended use, boundaries, cadastral unit); and the Register of Construction Works contains the technical data of buildings and structures, building permits and use authorisations.
2. Land Register
The Estonian Land Register (in Estonian: Kinnistusraamat) is a secure, digital-first system that plays a central role in property ownership and real estate law. As the data entered in this register is presumed to be accurate and legally binding, the register ensures complete transparency and legal certainty in real estate transactions. The Land Register is managed by the Estonian Land Register Department, under the Centre of Registers and Information Systems (RIK), which is part of the Ministry of Justice.
- Legal descriptions – property location, size, purpose, and cadastral (land unit) information;
- Ownership – name(s) of the owner(s), basis of acquisition;
- Encumbrances – servitudes, rights of use and restrictions;
- Mortgages.
Only the data provided for by law are entered
in the Land Register. The purpose of the
entries is to create legal clarity, in so far as
it makes it possible to identify the owner of
the immovable property and to determine whether the property is encumbered by
a restricted real right.
In order to make a change in the Land
Register, it is necessary to submit a
registration application, notarised or, for
simpler transactions, digitally signed and
accompanied by the document proving
payment of the state fee and other
necessary documents listed in the law.
Registration applications are registered in
the order they are received. An application
received earlier will be examined first and
will be entered in the Land Register in
order of priority. It should also be borne in
mind that the Land Register has a movable
queue system – a change in the entry above
requires the consent of the person entitled
behind. If necessary, a queue can also be
reserved.
3. Land and Spatial Development Board
The Estonian Land and Spatial Development Board (in
Estonian: Maa- ja Ruumiamet) is the backbone of Estonia’s
spatial data and land management infrastructure. From
cadastral systems and topographic databases to satellite
imagery services and 3D national mapping, it plays a
central role in ensuring accessible, accurate, and actionable
geospatial information.
The Land and Spatial Development Board is a government agency that maintains the Land Cadastre as a national database, which contains information on land boundaries, its characteristics (e.g. area, land use designation), and land use restrictions. In addition, the board implements national land policy, manages cadastral data, oversees surveying and its quality, organizes land assessment, and ensures public access to land records. The board is also involved in the coordination of geodetic networks, geological mapping, national topographic mapping, and distribution of maps and data to the public.
For the property acquirer, the importance of the Land and Spatial Development Board lies primarily in the fact that it maintains the Land Cadastre and develops a mapping service, enabling persons to obtain reliable information on plot characteristics. Finally, the Land and Spatial Development Board, as a cadastral registrar, creates cadastral units based on the submitted measurement data and the existing cadastral data.
The Land and Spatial Development Board is a government agency that maintains the Land Cadastre as a national database, which contains information on land boundaries, its characteristics (e.g. area, land use designation), and land use restrictions. In addition, the board implements national land policy, manages cadastral data, oversees surveying and its quality, organizes land assessment, and ensures public access to land records. The board is also involved in the coordination of geodetic networks, geological mapping, national topographic mapping, and distribution of maps and data to the public.
For the property acquirer, the importance of the Land and Spatial Development Board lies primarily in the fact that it maintains the Land Cadastre and develops a mapping service, enabling persons to obtain reliable information on plot characteristics. Finally, the Land and Spatial Development Board, as a cadastral registrar, creates cadastral units based on the submitted measurement data and the existing cadastral data.
4. Register of Construction Works
The Register of Construction Works (in Estonian: Ehitisregister)
is a national electronic database that records information on
buildings and constructions both under development and in
use. The main role of the Register of Construction Works is to
keep a record of construction works that are either underway
or already in use. It is maintained as a single-level electronic
database overseen by the Ministry of Economic Affairs and
Communications.
The register includes a comprehensive array of data such as:
The register includes a comprehensive array of data such as:
- Essential technical specifications and physical unit information;
- Location details, including cadastral codes;
- Building permits and local authority approvals;
- Occupancy/use permits;
- Details of building work;
- Energy performance certificates;
- Other data related to buildings and construction works.
The register simplifies the process of buying and selling real estate, as it contains the necessary information on buildings. Nevertheless, it is worth checking the technical information on site, as the data from the Register of Construction Works has, according to the law, only informative and statistical significance. Contrary to the above, the regulations, design conditions, notifications, building/occupancy/use permits, and prescriptions reflected in the register have legal significance.
5. Form of Real Estate Transactions
In Estonia, when acquiring real estate, both the contract
of obligation to transfer or acquire the real estate and
the real right contract for the transfer of ownership
must be authenticated by a notary. The notarial form
of certification also extends to all contracts aimed at
acquiring real estate in the future, e.g. preliminary
contracts.
Contracts for the encumbrance of immovable property
with a restricted real right (for example, a mortgage)
and for the acquisition of a restricted real right must
also be authenticated in the same notarial form.
Compliance with the formal requirements is linked to
the validity of the transaction. There is a presumption
that if the form of the transaction is not complied with,
the transaction is null and void.
6. Guidelines for Purchasing Real Estate
In summary, when buying a property, the purchaser shall
proceed as follows:
1. Check the data of the property from the Land Register, Land and Spatial Development Board, and Register of Construction Works;
2. If necessary, organize a technical and/or legal or full audit of the property;
3. Ask a notary to prepare a draft of the notarial sales contract; to mitigate risks and protect your interests, use the additional services of a professional legal advisor when drafting the sales agreement;
4. Sign a notarised property sales contract;
5. Pay the state fee and ask the notary to forward the contract with all annexes to the Land Register.
1. Check the data of the property from the Land Register, Land and Spatial Development Board, and Register of Construction Works;
2. If necessary, organize a technical and/or legal or full audit of the property;
3. Ask a notary to prepare a draft of the notarial sales contract; to mitigate risks and protect your interests, use the additional services of a professional legal advisor when drafting the sales agreement;
4. Sign a notarised property sales contract;
5. Pay the state fee and ask the notary to forward the contract with all annexes to the Land Register.
Ownership of the real estate is transferred to the purchaser
from the moment the corresponding entry is made in the Land
Register, not from the moment the contract is concluded.
Please note that a citizen or legal entity of a state which is
not a contracting party to the EEA Agreement, or a member
state of the Organisation for Economic Cooperation and
Development may acquire immovable property containing
agricultural or forest land only with certain restrictions set by
the law.
In addition, any natural person who is not a citizen of a country that is a contracting party to the EEA Agreement or the United Kingdom of Great Britain and Northern Ireland, or any legal person whose seat is not in such a country, is prohibited from acquiring immovables located in the country’s particular border areas, listed by the law.
In addition, any natural person who is not a citizen of a country that is a contracting party to the EEA Agreement or the United Kingdom of Great Britain and Northern Ireland, or any legal person whose seat is not in such a country, is prohibited from acquiring immovables located in the country’s particular border areas, listed by the law.
7. Rights of the Property Owner
The owner of a property is guaranteed by law the
protection of their property rights. The right of
ownership, which may be held by several persons at the
same time (shared ownership, which can be common
ownership or joint ownership), includes the right to use,
possess and dispose of a property, and to demand the
prevention of violation of these rights and elimination
of the consequences of violation from all other persons.
The rights of the owner may be restricted only by law
or by the rights of other persons.
Use of the property refers to the right to use the
immovable in daily life — to live in it, farm it or operate
a business on it, depending on the property type and
agreement.
Possession of the property means having actual
physical control over the property, regardless of
ownership. It refers to who holds and controls the
thing. Possession can be divided into direct and
indirect, depending on the rate of control over the
property. Direct possession means physical control
over the property (e.g. living in it), whereas indirect
possession means having legal control without direct
physical control over the property (e.g. a lessor owns
the property and has indirect possession, but the
lessee possesses it, having direct possession).
Disposal of the property constitutes the alteration of a real right in relation to an immovable. Disposal means the legal power to transfer, sell, mortgage, or encumber the property. This is a core right of ownership. As a rule, it is the owner who has the right to dispose of a property.
Disposal of the property constitutes the alteration of a real right in relation to an immovable. Disposal means the legal power to transfer, sell, mortgage, or encumber the property. This is a core right of ownership. As a rule, it is the owner who has the right to dispose of a property.
In case of violation of the possession and/or ownership,
the possessor and the owner may use the respective
legal remedies provided by law.
8. Obligations of the Property Owner
In Estonia, the owner of real estate not only enjoys a broad set
of rights but also has important legal obligations under various
laws, especially the Law of Property Act, the Building Code,
Planning Act, environmental laws and municipal regulations.
The main obligations of the owner can generally be divided as follows:
Zoning and Construction
The owner is obliged to
build and renovate their property only in compliance
with valid planning requirements and respective
official permits.
Maintenance and Safety
The owner is obliged to use
the building in a well-maintained manner and in
accordance with its intended purpose of use. During
its use, the building must be kept in such good repair
as is necessary for its safe use.
Neighbouring Rights
The owner is obliged to
avoid harming neighbours or their property. At the
same time, a property owner shall tolerate a normal
influence spreading from another property, provided
this does not significantly impair the use of their
property or conflict with environmental protection
requirements.
Environmental Responsibility
The owner is obliged to
follow nature protection, pollution, and waste
management rules.
Heritage Conservation Areas and Nature Reserves
The owner is obliged to comply with additional
legislative restrictions and obligations if their property
is in heritage conservation area or nature reserve.
Tax Obligations
The owner is obliged to pay land tax
and local fees, if applicable. Income tax is levied on the
sale and rental income of real estate (differences may
apply depending on the person receiving the income).
Local Property Maintenance Rules
The owner is
obliged to comply with the Property Maintenance
Rules established by the local municipality, for example
in relation to the maintenance of green areas and
snow removal.
In situations where your questions are related to a specific
property, a proposed transaction, or a dispute arising from
an already concluded contract, it is advisable to contact a
professional legal advisor to get comprehensive expert
advice.
Get in touch
Ramon Rask – Co-Head of Construction and Real Estate Practice
Ramon Rask has extensive experience in consulting Estonia’s leading real estate funds as well as resolving complicated disputes both in and out of court.
Leading European legal market reviews – The Legal 500 and Chambers Europe – have on several occasions recognised Ramon as one of Estonia’s leading attorneys in construction and real estate.
CONTACT RAMON
Marina Lapidus – Co-Head of Construction and Real Estate Practice
Marina Lapidus is a highly regarded real estate and construction law expert in Estonia. With her in-depth sector-specific knowledge, Marina is a strong partner for clients in large-scale real estate and development projects as well as in conducting major real estate transactions. Marina also has extensive experience in managing the rental portfolios of well-known Estonian shopping centres and drafting construction and design contracts.
contact marina