Frequently Asked Questions
What does 'preliminary marketing' mean?
Before construction begins, there is a period of preliminary marketing when you can make a reservation for the apartment you would like to buy.
What is a 'reservation deposit'?
When you make a reservation for an apartment during the preliminary marketing phase, you will pay a deposit on the apartment and therefore reserve the right to buy the apartment if a decision is made to construct the property. The reservation is not binding on you. Instead, you will get your deposit back if you decide to cancel your reservation. If the property will not be constructed, you will also get the reservation deposit back.
What is a 'purchase deposit'?
When you make an offer to buy a home, you must pay a deposit to secure your purchase. The deposit is regarded as part of the apartment price and will not be refunded if you decide to cancel your reservation.
What does 'asset transfer tax' mean?
The buyer must pay the asset transfer tax (1.6% of the apartment price) on the price of shares bought. The tax must be paid within two months of the date on which the ownership of the new apartment passed to the buyer. The buyer must also provide the Board of Directors of the housing company with proof of tax having been paid. You will not need to pay the asset transfer tax if you are buying your first owner-occupied home, but you will still need to submit an asset transfer tax notification.
What is the 'security for the construction stage'?
SATO provides security for the construction stage, amounting to a minimum of 10% of the total transaction prices of shares sold. The purpose of the security is to guarantee the completion of the construction of the property and it must remain in force at least 3 months after the property is approved by a building inspection authority for use.
What is the 'security after the construction stage'?
When the security for the construction stage expires, SATO provides security after the construction stage, amounting to a minimum of 2 % of the total transaction prices of shares sold. This security must remain in force at least 15 months after the property is approved by a building inspection authority for use.
What is an 'RS agreement'?
The Finnish 'RS' system is based on the provisions of Chapter 2 of the Housing Transactions Act. When construction begins, an 'RS agreement' is signed with the bank in which the safekeeping documents are deposited. Under the agreement, the bank undertakes to perform tasks including having the apartment documents printed and keeping them safe throughout the construction period.
What is an 'RS financing plan'?
This is a financing plan for the first year of residence that specifies the company's income and expenses. The financing plan is a safekeeping document deposited with the other safekeeping documents in the bank financing the construction project.
What is a 'pre-transaction inspection'?
A few weeks before you are due to move in, you will get a chance to inspect your apartment and point out any defects or omissions. Attempts will be made to rectify these before you move in.
What is a 'moving-in inspection'?
On the day you move in you have the right to inspect the apartment and point out any defects or omissions. Those affecting residence in the apartment will be reported to the constructor for rectification as soon as possible, but the rectification of other defects or omissions can be postponed until annual repairs are due.
