Registering Property in Mongolia

This topic examines the steps, time, and cost involved in registering property in Mongolia.

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Standardized property

Property Value: MNT 113,577,017
City: Ulan Bator

Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Obtain a non-encumbrance certificate from the Immovable Property Registration Office 3 days (regular procedure) or 1 day (urgent procedure) MNT 5,000 (regular procedure) or MNT 10,000 (urgent procedure)
2 Notarization of the contract of purchase 1 day Notary fees is based on the value of the contract: From 25,000,001 to 100,000,000 = MNT 50,000
3 Payment of Income or Transfer Tax at a commercial bank 1 day 2% of property value
4 Submit application to the Immovable Property Registration Agency 7 days (regular procedure) or 1 day (urgent procedure) Regular service fee (in MNT) Urgent service fee (in MNT) Base fee = 25,000 Base fee = 25,000 Certificate fee = 5,000 Certificate fee = 5,000 Urgent fee = 25,000
5 Transfer of the land use right 7 days MNT 10,000 fee for new certificate

Registration Requirement Details

Procedure 1.
Obtain a non-encumbrance certificate from the Immovable Property Registration Office
Time to complete:
3 days (regular procedure) or 1 day (urgent procedure)
Cost to complete:
MNT 5,000 (regular procedure) or MNT 10,000 (urgent procedure)
Name of Agency:
Immovable Property Registration Office
Comment:
The seller obtains, before signing the contract, the mortgage-free certification from the Immovable Property Registration Office.
Procedure 2.
Notarization of the contract of purchase
Time to complete:
1 day
Cost to complete:
Notary fees according to the following schedule:
Value of contract (in MNT) Notary fees (in MNT)
Up to 1,000,000
Name of Agency:
Comment:
The contract must be certified by the notary public who is authorized to operate in the district in which the immovable property is situated. The contract is prepared by the parties. The authorized representatives of the parties must be present at the notary office. In Mongolia, a legal entity cannot own land, only real estate. Thus calculation shall be made only for the building. As to the land ownership the purchaser after the transfer of the title of the immovable property, shall make an application to the Land department of the relevant district to transfer the Land use right to the purchaser's name. The documentation shall include:
• Non-encumbrance certificate (obtained in Procedure 1)
• Immovable property registration certificate (already in possession of seller)
• ID card number and registration number of citizen or name, address and state registration number of legal entity who is certifying documents.
• Permission of citizen, legal entity and authorized organization if required by law
• Copy of contract
• Copy of power of attorney, if required
• All documents shall be in original or notarized.
Procedure 3.
Payment of Income or Transfer Tax at a commercial bank
Time to complete:
1 day
Cost to complete:
2% of property value
Name of Agency:
Commercial Bank
Comment:
The Mongolian legal system established a special tax for the sale of immoveable property which is called income tax. The income tax is imposed no matter whether there will be profit or not. Income tax is calculated based on the total income that is realized from the sale of an asset.
Procedure 4.
Submit application to the Immovable Property Registration Agency
Time to complete:
7 days (regular procedure) or 1 day (urgent procedure)
Cost to complete:
Regular service fee (in MNT) Urgent service fee (in MNT)
Base fee = 25,000 Base fee = 25,000
Certificate fee = 5,000 Certificate fee = 5
Name of Agency:
Immovable Property Registration Office
Comment:
Parties submit relevant materials to the Immoveable Property Registration Agency. At the desk, the officer will check all documents and if satisfied will receive the application; if not he will note the missing documents and reject the application. The certificate of ownership will be issued within 7 days after the Registration Agency analyzes all the documentation presented, if the normal procedure is followed but in 1 day if the urgent procedure is chosen. The documentation shall include:
• A request for registration (fill an application form)
• Original immovable property registration certificate.
• A notarized copy of the contract (obtained in Procedure 2)
• Notarized permission of a citizen, legal entity and authorized organization if required by law.
Procedure 5.
Transfer of the land use right
Time to complete:
7 days
Cost to complete:
MNT 10,000 fee for new certificate
Name of Agency:
Land Department
Comment:
Ownership of the land belongs to the state. Only Mongolian citizens own land for family use. Therefore the land use rights are transferred with immovable property. This means who owns the immovable property then automatically holds land use right of the site. The land department of the relevant district will issue a new land use certificate for the new owner of the immovable property and will make a land use contract with the new owner.
The documentation shall include:
• A request for registration from both parties.
• Copy of the immovable property registration certificate.
• A notarized copy of the contract (obtained in Procedure 2)
• Notarized permission of a citizen, legal entity and authorized organization if required by law.