Buying Properties in Estonia: Off-Plan & New-Build Buyer Protections

1 | Why Buy Off-Plan?

• Access early-bird pricing and better layouts/floor levels.

• Pay in stages, freeing capital for investments during construction.

• Benefit from new-build warranties and modern energy efficiency (often Class A/B).

Golden rule: lock protections into the contract before you pay a cent.

2 | Typical Off-Plan Timeline (Copy/Paste)

Week	Milestone	Cash Out
0	Reservation & price lock (7–14 days)	€1 000–€5 000
2–4	Preliminary agreement at notary	10 % deposit (escrow)
Build phase	Stage payments (shell, MEP, finishes)	20–70 % total
Handover	Acceptance, snag list	Balance
+30–60 days	Title registers; occupancy certificate	—

Replace with your developer’s schedule and attach to the deed.

3 | Payment & Escrow Structures

Structure	How It Works	Risk Level
10/90	10 % at prelim; 90 % at handover	Low
20/30/50	Shell 20 %, MEP 30 %, completion 50 %	Medium
Monthly draw	Fixed amount each month of build	Higher (needs strong guarantees)

Always have funds held in notary escrow and released only on verified milestones.

4 | Essential Buyer Protections to Demand

1. Escrow release conditions tied to independent inspector confirmation.

2. Developer performance guarantee (bank or insurance bond) covering non-completion.

3. Price-change shield—no index-linking unless capped (e.g., construction index ≤ 3 %).

4. Specification schedule with brand/model SKUs; “or equivalent” must be equal or better.

5. Assignment right—ability to transfer your contract (with reasonable fee) if plans change.

6. Penalty for delay—per-day liquidated damages or rent compensation.

7. Defects-liability period—minimum 24 months on workmanship and systems.

8. Retention—withhold 3–5 % of the price until all snags are fixed.

5 | Snagging & Handover Checklist

Bring: spirit level, phone flashlight, socket tester, painter’s tape, and this list:

• ☐ Doors & windows: close/lock smoothly; seals intact.

• ☐ Floors & tiles: chips/lippage; grout sealed.

• ☐ Walls & paint: uniform colour; no cracks or damp.

• ☐ Electrical: sockets live; breakers labelled; smart-home kit installed.

• ☐ Plumbing: water pressure, hot-water time, leaks under sinks.

• ☐ HVAC/heat pump: modes tested; filters accessible.

• ☐ Ventilation: air-change verified in kitchen/bath.

• ☐ Appliances: model numbers match spec; warranties recorded.

• ☐ Meters: note readings; take photos for your files.

Log all items in a Snag List annex signed by both parties with fix-by dates.

6 | Financing Off-Plan Purchases

Approach	Pros	Watch-outs
Pre-approval now, final issue at handover	Locks affordability	Appraisal must match contract price
Bridge loan → mortgage	Move fast on auctions	Double fees if delays
Developer instalment plan	Less bank paperwork	Check interest & title-transfer terms

Ask your lender if they accept valuation on plans and if they need a completion certificate for drawdown.

7 | Energy & Warranty Advantages

• New builds often meet NZEB standards, cutting running costs.

• Expect appliance warranties (2 yrs+) and building warranty on key systems.

• Request the EPC, commissioning reports, and user manuals at handover.

8 | Red Flags—Walk Away If You See These

Red Flag	Why It’s Risky
Deposit not held in notary escrow	Funds exposed to developer insolvency
Vague spec (“premium finishes”)	Scope for downgrades
No delay penalties	You bear time risk
Requests for cash payments	Compliance & financing issues
No independent inspection allowed	Quality risk at handover

9 | Documents to Attach to the Notary Deed

• Technical specification sheet (signed).

• Milestone schedule + escrow release triggers.

• Performance guarantee certificate.

• Price-adjustment clause with clear cap.

• Assignment and retention clauses.

• Snagging protocol template and target dates.

Bryan Estates: Off-Plan Buyer’s Pack

• Contract review & risk memo within 48 h.

• Independent site inspections at each milestone with photo reports.

• Bank-approved valuation on plans and final appraisal coordination.

• Handover day snagging engineer + retention escrow management.

FAQs

Can foreigners buy off-plan in Estonia?

Yes—same rules as completed homes; use notary escrow and bank guarantees.

What happens if completion is delayed?

Your deed should include daily penalties and an option to rescind with deposit return + interest after a grace period.

Can I flip the contract before completion?

Often yes, if the deed allowsfee caps and developer consent.

Want Your Off-Plan Contract Stress-Tested?

Email info@bryanestates.ee or call +372 123 4567 for a fixed-fee review and milestone-inspection plan.