Source: https://www.maaamet.ee/maaoksjon/info.php?contract
Timestamp: 2019-08-20 01:26:40
Document Index: 17497809

Matched Legal Cases: ['§ 66', '§ 105', '§ 4', '§ 5', '§ 71', '§ 4', '§ 5']

The right to conclude the contract
The right to conclude the sales contract is granted to a person (hereinafter “buyer”) in whose favour the results of the auction are approved by the directive of the Minister of Environment. The results are approved:
· in favour of the winner of the auction, i. e. of the person who made the highest offer, if the preferential rights established in subsections 6 and 7 of § 66 or subsection 2 of § 105 of SAA are not applied upon the transfer of the immovable property;
· in favour of the entitled person (adjacent neighbour, person using the immovable property on legal grounds), if, upon the transfer of the immovable property, the terms and conditions for application of the preferential rights established in the State Assets Act are met.
The buyer may acquire the immovable property if the law does not prescribe restrictions upon the acquisition of the asset. Upon acquiring immovables which contain agricultural or forest land, and in the case described in subsection 6 of § 4 and in § 5 of KAOKS, the buyer must submit to a notary an authorisation of the relevant county governor prior to conclusion of the sales contract. See information in clause Restrictions on the acquisition of immovables.
The term for conclusion of the contract
Sale contract of state assets (both contract under the law of obligation and real right contract) must be concluded in the form of a notarial deed within the term specified in the decision for approval of the results of the auction. Pursuant to subsection 1 of § 71 of SAA, the term for the conclusion of the contract may be up to two months following approval of the results. The specific term for the conclusion of the contract will be published separately in each notice of the auction.
In the case the buyer wishes to extend the term for the conclusion of the contract, the buyer must submit to the organiser a justified application. The extension of the specified term is allowed only in the cases where this is justified, if the conclusion of the contract is hindered by restrictions independent of the parties. The extension of the term for conclusion of the contract will be decided by the Minister of Environment.
Before the conclusion of the sales contract, the buyer is obligated to:
1) make sure the immovable property complies to all expectations;
2) carefully examine the state of the immovable property in nature;
3) inspect the information stated in the notice of the auction published on the website of the Land Board, including the information reflected on the restrictions map, and all added documents;
4) inform the seller or notary of the wish to examine the draft sales contract;
5) submit to notary an approval of the supervisory board, if the buyer is a company who, according the Commercial Code, must have the relevant approval for conclusion of the transaction;
6) in the case described in subsection 6 of § 4 and in § 5 of KAOKS, submit to notary an authorisation of the relevant county governor, if applicable.
In order to examine the draft sales contract, the relevant request must be made to the seller or notary before conclusion of the sales contract.
The sales contract includes, among other things, the following terms and conditions:
1) confirmation of the buyer regarding the acquisition of the sale object in a state it was at the moment of conclusion of the sales contract;
2) confirmation of the buyer regarding careful examination of the immovable property and information relating thereto published in the notice of the auction, and being aware of the state, characteristics, purpose, valid legal restrictions of the immovable property, and having no claims towards the seller;
3) the seller is not liable for non-compliance of the immovable property with the terms and conditions of the contract if, at the time of conclusion of the contract, the buyer knew or had to know about the non-compliance of the immovable property;
4) confirmation of the seller that the contract includes the data of the objects causing the restrictions reflected on the restrictions map, and other information known to the seller at the time of conclusion of the contract;
5) the seller is not liable for restrictions related to heritage conservation or nature conservation, or for other legal restrictions or hidden defects that are not reflected on restrictions map and, therefore, cannot be known to the seller at the time of conclusion of the contract;
6) in the case a utility network or other objects not reflected on the restrictions map and in the notice of the auction occur after the conclusion of the sales contract, the seller is not obligated to bear the costs related to their relocation and/or liquidation or any other losses;
7) the seller cannot guarantee the preservation of the envisaged purpose of the immovable, the adoption of the detailed plan, nor the issuance of the design specifications and building permit. The initiation of the preparation and adoption of the detailed plan and issuance of the design specifications and building permit is decided by the local government;
8) upon occurrence of defects, the buyer must notify the seller thereof not later than within three months following the conclusion of the sales contract;
9) the claims of the buyer regarding defects of the immovable property will expire within three months following the conclusion of the sales contract;
10) the moment of the transfer of the possession of the object is deemed to be the moment of the notarial authentication of the contract;
11) the risk of accidental loss or destruction of the immovable property will be transferred to the buyer upon the transfer of the possession;
12) pursuant to the Land Tax Act, land tax liability is created with regard to the buyer on 1 January of the year following the conclusion of the contract;
13) confirmation of the buyer regarding the absence of a declared bankruptcy or bankruptcy proceedings initiated towards the buyer;
14) before the conclusion of the contract, the seller delivers to the buyer all documents related to the immovable property, which are in the possession of the seller (e. g. copy of the plan of the cadastral unit, copy of the border protocol, if this exists, printout of restrictions map application);
15) the notary fee and the levy related to conclusion of the contract will be paid by the buyer.
Purchase price and costs of concluding the contract
The buyer is obligated to pay the part of purchase price exceeding the security deposit before conclusion of the sales contract to the bank account of the Ministry of Finance or submit the guarantee for performing the contract (notarial deposit). The organiser will send to the buyer an invoice according to which the purchase price must be paid. Upon making the payment, the buyer must indicate correct data specified on the invoice, including the reference number and description of the payment.
The notary fee and the levy will be paid by the buyer according to instructions of the notary.
DECLARATION OF THE RESULTS INVALID
In the case the immovable property is not sold within the term specified by the seller due to reasons related to the entitled person, the right of the winner of the auction to acquire the immovable property will be re-established. The relevant notice is sent to the winner of the auction in writing to the contact address indicated in the application for participation. In the case the winner declares in writing the continuing wish to buy the immovable property and pays again the security deposit pursuant to procedure established by the organiser, the relevant amendment will be made to the decision of approval of the results of the auction and a new term for the conclusion of the contract will be set, which may be up to one month following the setting of the term.
If the winner of the auction does not conclude the contract by specified term or does not submit the guarantee for performance of the contract, the organiser of the sale may, where this is justified, propose the conclusion of the contract to the person who made the second best offer or to entitled persons (if they exist). In such case, the relevant amendment will be made to the decision of approval of the results of the auction and the term for conclusion of the contract will be set, which may be up to one month following the adoption of the decision.