Purchasing real estate in a frontier property market like Ulaanbaatar requires certain steps that one as an investor should be familiar with. This ensures that the buying process is smooth, safe and hassle-free. In this article we look at the steps involved and how to go about them.
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Find an Experienced Real Estate Agent - visit Mongolian Properties! |
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Your real estate agent is your window into the property market in Mongolia. A knowledgeable and experienced real estate agent should be able to find multiple solutions to your needs in a timely manner and negotiate the best price on your behalf.
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Think About What You’re Looking For |
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Be sure to speak with your agent about your individual property needs. Will it be for an investment, or do you plan to live in the property? What is your budget? Will you be living alone,or with your family?All of these questions are important to consider before looking for a property.
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See the Property |
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It is important to check whether the building is connected to the central heating, water and sewage system.If it is not connected, think about how much it will cost you in long term,i.e. :your electricity fee will skyrocket to heat your apartment in winter.
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Check the Certificate |
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Every apartment owner has an “Immoveable Property Ownership Certificate”, which serves as a proof of ownership. Your real estate agent can check the certificate to ensure that it is genuine and that the owner is credible. This process should take no more than one or two days.
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Sign the Sales and Purchase Agreement |
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Once you’ve made all the necessary arrangements with the owner, both seller and purchaser will go to a notary office in a district in which the property is located. For instance, if the property is located in Sukhbaatar district then the“Purchase agreement” must be notarized within the same district’s notary office. Both parties are required to bring their passports and the original “Immovable Property Ownership Certificate”. Notary fees are generally around MN₮ 10,000 - MN₮ 300,000 (US$5 - US$150) depending on the property value.
Costs related to the notarization of the contract and registration to the District’s Immovable Property Registration Office must be paid by the Buyer. Notary will draw up a standard contract, which will then be stamped and signed by both seller and purchaser. After you sign the contract,you are expected to pay the outstanding balance in accordance to your contract to receive the certificate.
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Paying Property Sales Tax of 2% |
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After signing the Sales and Purchase agreement,the Seller must pay the property sales tax equivalent to 2% of the property value and the receipt will be needed later when submitting documents to the District Immoveable Property Registration Office to apply for the ownership transfer and obtain the new ownership certificate.
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Changing Ownership |
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Once the property sales tax has been paid,go with your agent to the District Immoveable Property Registration Office,where your agent will assist you in filling out the form for ownership transfer and new ownership certificate. Obtaining a new certificate normally takes three to five working days to process and the following basic documents are required:
-Notarized passports’ copies -Copy of Sales and Purchase Agreement -Bank receipt that proves you have paid the Property Sales Tax of 2% Fee receipt (urgent MN₮ 40,000 and regular fee MN₮ 20,000) Application form (your agent will assist with this)
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Paying the Agency Fee |
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Most Real Estate agencies do not charge buyers or tenants.In most transactions, the lessor or the seller pays commissions and/or fees.
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Moving In |
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Once the certificate is filed, the current tenant of your new property is allowed approximately one week to move out.Withhold a small amount of money on your final payment until you can conduct a thorough inspection of the property on the day of moving in to insure against any unforeseen property damages. Once you have checked the apartment and have been given the keys, you may pay the remaining amount.
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Changing the Locks |
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The first thing that should always be done when you move into a property is to change all the locks.
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| We hope this information was helpful for you and to learn more about purchasing real estate in Mongolia you can click here. | |
