How to Buy Property in Mongolia
All types of property in Mongolia are affected by the state ownership of land. Only in recent years has private ownership of land become an opportunity for homeowners and investors thanks to the adjusted legislative framework that is now in place. Property can be bought and sold by both Mongolians and foreigners so foreign investment has become increasingly popular over the years. Immovable Property Ownership Certificates, a form of lease, is actually the way in which property ownership is described in Mongolia instead of the usual sale of land.
In order to purchase property in Mongolia everyone must agree to the contract that is set forward by the notary. However, if the property being bought is a new build, the buyer visits the notary and signs a contract before taking this contract to the registration office where it is then registered. This is the relatively straightforward process that is usually taken to acquire a property in Mongolia. There are also other methods in which property can be purchased in Mongolia that relate to urgent procedures or significantly expensive sales.
The general purchase procedure is to get hold of a non-encumbrance certificate from the registration office. This usually takes around 3 days but can be decreased to just 1 day if the purchase is urgent. Once the contract is notarized, which takes around a day to complete, the payment takes place. This includes the transfer of tax or the income payment which takes around 1 day at any commercial bank. The application is then submitted to the Immovable Property Registration Agency which usually takes 7 days, sometimes a single day if urgent. The last step is the transfer of land use rights, again taking around 7 days.
Since 2007, Property Frontiers became associated with the property market in Mongolia. Mongolia has proved to be an excellent property investment opportunity for investors in the last five years and we have uncovered its potential. Our clients were sustaining yields of around 24% with capital growth reaching 300% for some. The economy in Mongolia has been growing considerably and it became the fastest growing economy in 2011, making it an excellent opportunity for all sorts of investors.