What is a License and Why is it Important?

Did you know that buying a house or apartment without a permit to use can jeopardize obtaining a home loan and bring unexpected additional costs? A permit to use is the primary guarantee of a building's safety and legality. We will explain exactly what a permit to use means, why it is important for a real estate owner, and how to check or apply for one.

What is a permit to use and when is it needed?

According to the Building Code, a permit to use for a building is an official confirmation issued by the local government that the completed building meets all established requirements and complies with the building project. A permit to use allows a building to be officially used for the purpose for which it was constructed, ensuring the building's safety of use and technical soundness. If your building requires a building permit for construction or reconstruction, you must also apply for a permit to use after the construction work is completed. To successfully complete the process, it is useful to know what are four steps to starting house construction, so that the documentation is properly completed from the beginning. Once a permit to use has been issued, it is generally permanent, provided that no new reconstructions are carried out in the building without approval in the future.

Why is a permit to use so important in real estate transactions?

When buying or selling real estate, correct documentation is of decisive importance. When issuing a home loan, banks take into account the documentation of the real estate being purchased, and the presence of a permit to use is an important criterion in granting the loan. For a building without a permit to use, the bank evaluates each case individually, analyzing the building's safety and the possibility of organizing the documents. The bank may require that the work and audits necessary to obtain the permit to use be completed before the loan is issued or within a certain period after the transaction. You can read more about how financial institutions assess such situations in the article real estate without a permit to use and home loan.

If you are in the role of a seller, it is worth knowing that proper documentation helps attract more interested parties and ensures a smoother transaction. This is important to keep in mind both when the topic is apartment sales in Estonia, and when it comes to house sales. When preparing for a transaction, it is worth conducting a thorough pre-purchase inspection of real estate, which helps determine the building's technical condition and prevent situations where hidden defects may later emerge. When planning a notarized transaction, it is also worth familiarizing yourself with who pays the notary fee, so that transaction costs are clearly planned in advance.

Legal and financial aspects associated with a building without a permit to use

Using a building without the required permit to use is, according to the Building Code, a misdemeanor for which a fine of up to 300 penalty units may be imposed. In addition, the local government has the right to issue a directive to the owner and, if necessary, suspend the use of the building until the building's compliance and safety have been proven. Organizing technical documents and audits gives the owner confidence that the building's structures and technical systems operate safely.

How to check if a permit to use exists?

The existence and validity of a real estate permit to use can be quickly and free of charge checked by anyone in the state electronic Building Register. To do this, you need to enter the building's address, cadastral number, or EHR code into the search in the system. On the building's data card, you need to open the "Building Documents" menu section, which displays all issued permits and notifications. If a permit to use has been granted, you will see a corresponding entry in the list of documents marked "Issued", and the date the permit was issued and the official number are also listed there.

How to apply for a permit to use and what does it cost?

Application for a permit to use is done electronically through the Building Register, where the owner fills out the application and uploads all necessary construction documents and audits. The local government reviews a proper application within 30 days as a rule from its submission. For the review of an application for a permit to use for a residential building and its servicing facility, a state fee of 30 euros must be paid.

In addition to the state fee, you should budget for additional costs for necessary technical audits and surveys. Depending on the building's characteristics, electrical and gas installation audits, energy labels, ventilation measurements, drinking water analysis, chimney sweeping certificates, and geodetic construction surveys may be required. If the building's original documentation is incomplete, experts with professional certificates can help conduct the necessary inspections and issue appropriate certificates to prove the building's compliance.

Proper documentation ensures a safe transaction

A permit to use is an important document for a real estate owner that confirms the building's safety of use, ensures a smooth loan process at the bank, and protects against legal misunderstandings. If you plan to buy or sell real estate, it is worth checking the register data in advance and, if necessary, organizing the documentation. Browse sales listings and start your search for a new home in our convenient real estate search environment, take a look at the listings in the new developments section, or use the Kinnisvara24 portal for quick and safe sale of your real estate.