Legal Aspects of Real Estate Transactions in Mongolia

Legal Aspects of Real Estate Transactions in Mongolia

1) What legal documents are required for a real estate transaction?

Real estate transactions shall become valid upon registration with a competent state body. Required legal documents are (i) a notarized copy of the sales and purchase agreement, (ii) an original copy of the state registration certificate of the real estate, and (iii) an original copy of the payment receipt of sales income tax on the immovable property and registration service fee of MNT 20,000 (~USD 6.00).

2) Which official institutions are authorized to make real estate transactions?

Real estate transactions shall become valid upon registration with the General Authority for State Registration of Mongolia.

3) What are the tax implications of buying and selling real estate?

The Seller is subject to 2% of sales income tax on the real estate.

4) Are there any differences to consider if the purchaser of the real estate is a foreigner?

Land ownership is limited to Mongolian citizens. Foreign legal entities, foreign-invested business entities, and foreign citizens may use land based on an agreement for designated purposes, terms, and conditions. 

5) What are the responsibilities of the seller in a real estate transaction?

The seller is liable for paying the sales of income tax, land fees /if any/, any other due fees applicable to the real estate /if any/, and having any liens and encumbrances released/removed.

6) What are the implications of property liens and encumbrances?

The real estate subject to the transaction must be free of any property liens and encumbrances to be duly transferred to the buyer. Any existing liens and encumbrances must be removed by the seller.

Author: Buyanjargal Tungalag

Mongolia
Real Estate