Real estate disputes in Estonia – defects, co-ownership and contracts

Found damp walls or a leaking roof after buying in Estonia, or is the other side refusing to keep to the deal? Estonian law gives you remedies, but you can lose some of them if you do not act in time. Erovik Law Office in Tallinn handles the kinds of property dispute Estonia-based and foreign owners commonly face. Real estate litigation is where the office has particularly strong and consistent experience.

What is different in Estonia

• The notary is mandatory. Both the contract to buy or sell real estate and the agreement transferring ownership must be notarised (Law of Property Act (AÕS) §§ 119–120). So must a preliminary agreement, or it is not considered concluded (Law of Obligations Act (VÕS) §§ 11 and 33). The Chamber of Notaries lists all notaries.
• The land register decides. Ownership passes only when the transfer is entered in the land register (kinnistusraamat) (AÕS § 64¹). Anyone can view the register online, and its entries are presumed correct (Land Register Act (KRS) § 74; AÕS § 56).
• Language. Deeds are in Estonian, but on request the notary may use another language they know well enough. If you do not understand a deed well enough, it must be translated for you (Notarisation Act (TõS) §§ 5 and 17). A power of attorney certified abroad generally needs an apostille or legalisation (TõS §§ 56–57).

Typical disputes we handle

Hidden defects after a purchase

The seller is liable for a defect that existed when the risk passed to you, even if it appears later. Notify the seller within a reasonable time after you discovered, or should have discovered, the defect; for real estate there is no fixed number of days. Ask for repair in the notice or within a reasonable time after it, or you may lose that right. No special form is required, but a written notice is easier to prove.

A late notice usually means you cannot rely on the defect, unless the seller knew or should have known of it and kept quiet; then even a ‘sold as is’ clause does not protect the seller. You cannot rely on defects you knew or should have known about when you signed (VÕS §§ 218–222), so inspect the property first.

Remedies include repair, a price reduction, damages and, in serious cases, withdrawal (VÕS §§ 101 and 222–225). If you bought a building or apartment from a business as a consumer, a defect appearing within two years of handover is, as a rule, presumed to have existed at handover (VÕS § 218).

Defective construction or renovation work

A contractor is liable in the same way, with the same notice rules; for construction work done by a business for a consumer, the two-year presumption also applies. If the contractor does not repair within a reasonable time, you can have the work repaired and claim the reasonable costs, or withdraw (VÕS §§ 642–647).

Time limits

Contract claims are generally time-barred after three years. Building-defect claims against a contractor have five years; against a seller, they do not expire before five years from completion of the building. Intentional breaches and claims to transfer ownership of real estate have ten years (General Part of the Civil Code Act (TsÜS) § 146). For defects, time usually runs from handover, or from completion or acceptance of the work (VÕS §§ 227 and 651).

Breach of a sale contract

If the seller does not hand over, the buyer does not pay or one side wants out, you can demand performance, claim damages or, after a fundamental breach, withdraw (VÕS §§ 101 and 116). If enforcement is at risk, for example because the property might be sold, the court can secure your claim, such as with a prohibition note in the land register (Code of Civil Procedure (TsMS) §§ 377–378).

Co-ownership and ending it

Co-owners decide ordinary use by a majority of shares; selling or encumbering the whole property needs everyone’s consent (AÕS §§ 72 and 74). Any co-owner can demand the end of co-ownership at any time, or only for an important reason if this was excluded by agreement (AÕS § 76). Without agreement, the court can divide the property, award it to one or more co-owners who pay the others, or order a sale at auction (AÕS § 77).

Apartment associations (korteriühistu)

Every apartment owner belongs to the apartment association, pays advance charges under its economic plan and must arrange management of the apartment even while away (Apartment Ownership and Apartment Associations Act (KrtS) §§ 1, 31 and 40). A claim to declare an association decision invalid must be filed in court within 60 days of the decision (KrtS § 29). Check for arrears before buying: except in enforcement and bankruptcy sales, the buyer is liable as a guarantor for the seller’s overdue charges, up to the apartment’s value (KrtS § 43).

Possession and rights of use

If someone unlawfully disturbs your possession or takes the property without your consent, you can demand that this stop or that possession be restored. This possession claim lapses unless you go to court within one year; your claims as owner are separate (AÕS §§ 44–48, 80 and 89).

A servitude such as a right of way needs a notarised agreement and a land register entry (AÕS §§ 64¹ and 173). If your land has no necessary access to a public road, you can demand access over a neighbour’s land; failing agreement, the court decides (AÕS § 156).

How a property dispute usually runs

1. Collect evidence: the agreement, dated photos, expert reports.
2. Send a written notice stating the problem and what you want, then negotiate; a settlement is often possible.
3. If needed, sue in the county court (maakohus). Proceedings are in Estonian, and documents in other languages generally need translating (TsMS §§ 11, 32 and 33).
4. If needed, a bailiff (kohtutäitur) enforces the judgment (Code of Enforcement Procedure (TMS) § 3).

The losing party generally bears the costs, but the court can divide them differently (TsMS §§ 162–163); recovery is never guaranteed.

Related guides

• Buying property in Estonia
• Hidden defects in property
• Renting an apartment in Estonia

How Erovik Law Office can help

• Reviewing a purchase or sale agreement before you sign – from EUR 120.
• Initial written analysis and action plan – EUR 120–180.
• Demand letters to a seller, contractor, co-owner or association – EUR 120–200.
• Statement of claim – from EUR 300; other court documents and representation – by agreement.

In Estonian civil courts a party may be represented by an advocate or by another person with the legal qualification required by TsMS § 218; stricter rules apply at the Supreme Court. Our lawyer (jurist) Ero Liivik will tell you honestly if a claim is weak or a settlement makes more sense. Prices are final (no VAT); expert, translation, notary and state fees are extra, and international matters may be quoted separately. See our fees and court disputes in Estonia.

How to start

Related reading: inheriting property in Estonia and family and inheritance law.

Send a short description, the contract, photos and any deadline to info@erovik.ee or via the contact page. We work in English and Estonian, agree scope and price first, and usually reply within one working day.