Legal Alert – Electronic Sales of Real Estate Will Be Enabled in November 2013
As from the beginning of November 2013, a means of electronic communication will be available in the sales of real estate. The relevant amendments to the Finnish Code of Real Estate have been approved already in February 2011 but their coming into effect was postponed until the completion of the new electronic communication system. The Finnish government proposes now that the majority of the amendments will take effect as from the beginning of November.
From the beginning of November, the sales of real estate can be made electronically in the electronic communication system maintained by National Land Survey of Finland. Also mortgage applications, apart from a few exceptions, can also be submitted electronically. In addition, electronic mortgage deeds will be introduced at the same time.
The sale of real estate can then be completed by using an electronic form in which information is collected from the Register of Titles and Mortgages and other official registers. Assignment information will be transferred directly from the electronic deed of sale to the official registers. Registration of the title to the Register of Titles and Mortgages will become pending without submitting a separate application.
At present, a notary must attest the sale in the presence of all the signatories of the deed of sale. However, attestation is not required in the electronic sales of real estate. Traditional procedures and paper documents may still be used in the sales of real estate.
Borenius’ Construction and Real Estate team will address the matter soon and provide practical guidance on how to make use of this possibility in professional sales of investment properties.