What are the specific features of registering real estate rights in Mongolia?

1) What are the specific legal features of real estate rights registration in your jurisdiction?

The following laws and regulations govern and support immovable property and land ownership relations in Mongolia:

• Civil law
• General Law on State Registration;
• Law on State Registration of Property Rights
• Law on Land;
• Law on Cadastral Mapping and Land Cadaster and
• Law on Immovable Property Pledge.

In accordance with the Article 84 of Civil law of Mongolia establishes the legal classification of property into two main categories: immovable /real estate/ and movable property. It defines immovable property primarily as land and assets that lose their intended function when separated from land. Any property not meeting the criteria for immovable property is classified as movable property. This distinction provides the legal foundation for determining applicable rules on ownership, transfer, registration, and real estate related rights and obligations.

Landowners are required to register their landownership right in the state register in accordance with the Law on State Registration of Property Rights. This ensures the legal confirmation of ownership rights and maintains the integrity of the State registration system.

Under Article 4 of the Law on State Registration of Property Rights, ownership, and other rights in Immovable Property, ownership and other rights in immovable property such as possession, use, and mortgage are recognized as legally effective only upon their registration in the state register. More specifically, a contract for transfer (e.g., sale and purchase) does not create ownership rights for third parties unless and until the right is duly registered. Pursuant to Article 7.1 of the Law on State Registration of Property Rights, it states that a citizen or legal entity shall file its application for state registration of rights specified in Article 8 of the General Law on State Registration to the state registration authority in the territorial jurisdiction of immovable property.

2) When does ownership legally arise: upon signing the contract or upon registration?

The ownership of immovable property legally arises upon registration, not upon execution of the contract. The real estate ownership and other rights become effective only after they are registered with the state register. A transfer agreement (even if valid and notarized under the Law on Notary of Mongolia) creates contractual obligations between the parties, but it does not transfer ownership by itself, which:

• Upon signing the contract → the buyer obtains a contractual right to demand transfer of ownership.
• Upon registration → the buyer becomes the legal owner with enforceable rights against third parties.

Pursuant to Article 10 of the Law on State Registration of Property Rights, the initial registration of the immovable property ownership in the state registration of rights shall be based on the land parcel number. One file shall be opened on each land parcel, and the immovable property right shall be registered as one with the parcel’s right.

3) Is registration mandatory for the validity of real estate transactions?

Yes, once the real estate is registered in the State Registration office in Mongolia, it becomes fully valid and enforceable.

4) What types of real estate rights must be registered (ownership, lease, easements, mortgages, etc.)?

Pursuant to Article 8.1 of the General Law on State Registration, State registration of property rights shall have the following types, particularly registration of:            

8.1.2. right to construct a building on another person's land;
8.1.3. servitude;
8.1.4. mortgage;
8.1.5. usufruct;
8.1.6. lease;
8.1.8. guarantee/guaranty and
8.1.9.  land possession right and land use right.

5) What restrictions apply to foreign nationals when purchasing real estate?

There is no restriction for foreign nationals to purchase immovable property such as buildings, houses, and offices (excluding land).

However land ownership and possession rights are only permissible to Mongolian citizens, companies, and organizations. In accordance with Article 6.3 of the Law on Land, foreign countries, international organizations, foreign legal entities, entities with foreign investment, foreign citizens and stateless persons may obtain land use rights for a specific purpose and a defined period, subject to contractual terms and in compliance with applicable laws, but does not have possession right and ownership right.. It means that a foreign company may only become the user of land for a specified purpose, under specified conditions, and for a specified period of time, as outlined in land use such as  PPP agreements in compliance with the law. Governor of the relevant level have the right to make a decision permitting the use of land to foreigners and stateless persons permanently residing in Mongolia for more than 183 days, through land auctions, for household needs only.

6) How is priority of rights determined in the registration system?

The priority of rights in the real estate registration system is determined based on Article 184 of the Civil Code of Mongolia, the order of registered rights in the State register shall be determined according to the submission order of application to register, chronological order of registration, rather than the date of the underlying transaction.

In other words, where multiple rights exist over the same immovable property, for example, several mortgages or competing claims, the right that is registered earlier in the state register takes precedence over those registered later.

As a result, even if a party concluded a contract earlier, failure to register promptly may result in losing priority to another party that registers their right first. Consequently, priority disputes are resolved by reference to the register, ensuring certainty and predictability in property transactions.

7) Is there a unified land or real estate register, and is it publicly accessible?

A unified real estate registration system is available, promoting transparency and public accessibility.

The relevant online platforms are as follows:

1. http://burtgel.gov.mn/service/index.php/eprs-newlist
This registry provides publicly accessible information on immovable property such as buildings, houses, and offices (excluding land).

2. https://www.egazar.gov.mn/
This system is not fully open to the public; access is generally restricted to landowners and certificate holders.

8) What are the common grounds for refusal or suspension of registration?

General ground for refusal of registration /Article 20, Annex to Government Resolution No. 397 of 2018, of the Procedure for State Registration of Property Rights,/

The State Registrar shall refuse to register a right in the State Register of Rights in the following cases:

1. If there are grounds, including the right specified in the application for registration that refers to the banned rights or restrictions set by special records as stated in Article 30 of the Law on State Registration of Property Rights;

2. The pending registration after the preliminary records is likely to terminate or damage the claim of a person whose right is protected by preliminary records pursuant to Article 185.4 of the Civil Code, or consent is not obtained from a person who had preliminary records made;

3. Inconsistency between the application and its supporting documents, or the content violates the relevant laws and regulations;

4. The online applicant has not verified his/her signature as provided in the Law on Electronic Signature;

5. If the dispute regarding ownership and other related property rights is being reviewed by a court;

6. If there are no documents confirming the ownership right specified in Article 10.6.1 of the Law on State Registration of Property; and

7. If a right previously registered in the State Register of Rights is valid.

In the event that the State Registrar refuses to register a right in the State Register of Rights, it shall provide the applicant with a written or electronic notification clearly stating the grounds for this.

Entering special notes in the State Register of Rights; Revocation

1. The state registrar shall, based on the decision and request of the authorized person specified in the law, make a special record on the grounds specified in Articles 30.1.1, 30.1.2, 30.1.3, 30.1.4, 30.1.5, 30.1.6 of the Law on State Registration of Property Rights, and on the grounds specified in Article 30.1.7 of the Law on State Registration of Property Rights, and attach the decision and request of the authorized person to the personal file;

2. The state registrar shall review the documents submitted for special record making in relation to the personal file of the state registration of rights and, if it finds that the requirements are met, make a special record. If the requirements are not met, refuse to make a special record and notify the response;

3. A special record made in the state registration of rights shall be invalidated on the basis of the decision and request of the authorized person specified in the law.

The following are the reasons for refusal to register the immovable property pledge /Article 11 of the law on Immovable Property Pledge.

Pledge contract (hereinafter referred to as "Contract") shall be concluded in writing in accordance with the general procedures of the Civil Code and this Law and in addition to Article 156.2 of the Civil Code, the following shall be included in it:

1. Claims to be secured by the pledge, its amount, if the price and amount of the payment are not determined in advance, the procedures to determine these further;

2. The period of performance of the obligation to be secured by pledge, if the obligation is based on any other contract, the parties, date and conditions of this contract must be described;

3. Pledge item location and evidence to confirm a pledge item as pledger's property, and the name of the authorized registry body that registered the proprietary rights, and property ownership certificate number;

4. Confirmation to prove whether the pledge item has been pledged to another person or not; 

5. If duty execution is done partially, the payment obligation period, frequency, amount, or procedures to determine these further;

6. Procedures to fulfill pledge demand; 

7. Provision on whether the pledgee's right is certified by pledge certification or not;

8. If the pledge item is a proprietary right of immovable property, the main condition and period of the contract under which such right was obtained;

9. Pledge item related to third-party proprietary rights; Others. 

10. If the law allows and the parties have agreed on the contract, pledge demand can be executed outside the court's control. 

11. In the contract specified in Article 10 of this requirement, it shall state in detail the method to sell the pledge item outside the court's control.

If the pledge contract violates the abovementioned requirements, it shall be prohibited from being registered in the State registry.

Authors: Bolormaa Volodya, Managing Partner; Baigali Battulga, Associate.