When a piece of land is transferred from one owner to the next, the new owner must register his or her ownership of, or title to, the property. This is done by applying for a registration of title. Only a property whose ownership has been registered can be used as security for a loan. The registration of title is entered into the public title and mortgage register. Once title to a property has been registered, the new owner is shown on the certificate of title.
A piece of land is a property or an unseparated parcel or designated share of a property. Ownership can be transferred through a sale, as a gift, through the distribution of matrimonial assets or by inheritance.
Apply for registration of title on time
The new owner is expected to apply for registration of title within six months of signing the contract of conveyance, even if ownership has not yet been transferred to the new owner.
The six-month period starts on the day the contract, such as a bill of sale, is signed. If this period is exceeded, each six-month period of further delay increases the amount of transfer tax. The maximum total transfer tax is the double of the amount due within six months of signing the contract.
When the registration of title has been granted, the National Land Survey will initiate a parcelling procedure to convert the unseparated parcel into a new property. The parcelling procedure is initiated automatically.
With one application, you can apply for the registration of title to more than one property. The price is determined by the number of properties.
Apply for a pro forma registration of title
It is not compulsory to apply for a pro forma registration of title, but doing so makes it easier to handle matters related to the conveyance of property. You should apply for a pro forma registration of title in at least the following cases:
- When the estate of a deceased person wants to sell a property belonging to the deceased. With a pro forma registration of title, it is not necessary to give the estate inventory deed to the subsequent buyer of the property for him or her to append to the application for registration of title.
- When a company has undergone changes, such as a split or a merger.
From initiation to decision, the entire process takes approximately 3 months.
How to apply for registration of title
- Assemble all necessary appendices (in Finnish).
- Fill in the form (in Finnish).
- You can send your application by e-mail or by post, or bring it in person to our customer service. Physical documents will be returned to you when your case has been initiated.
The most common ones are the receipts for payment of the purchase price and transfer tax. You do not need to use original copies of contracts that have been signed by a public purchase witness as appendices to the application for registration of title. Other contracts must be sent by post as original copies. A list of other necessary appendices is included in the instructions on how to fill in an application for registration of title (in Finnish).
When you apply for a pro forma registration of title, include a copy of the estate inventory deed and a certificate of succession concerning the deceased.
In changes related to company law, include the companies' plan for splitting up and its appendices.