Obtain a non-encumbrance certificate from the Immovable Property Registration Office
Agency: Immovable Property Registration Office (General Authority for Intellectual Property and State Registration)
The seller obtains, before signing the contract, the mortgage-free certification from the Immovable Property Registration Office.
Administrative fees of General Authority for State Registration are determined by the Government Resolution No. 237 dated September 15, 2010, with the amendment of Resolution No.94, dated 20th March 2017 modifying articles 4.1, 4.3 and 4.7.
Time and cost: 1 day, MNT 10,000 (Service fee for a detailed reference regarding non-encumbrance is MNT 5,000 (regular) and MNT 10,000 (expedited))
Notarization of the contract of purchase
Agency: Notaries
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 parties prepare the contract. When the immovable property is located at places other than the contract parties’ jurisdiction, having a notary certification may take longer time as contract parties are required to be present in a notary office at the same time. All the documents to be submitted at the Immovable Property Registration Agency and needed for the transfer of the land use right shall be in original or notarized. The originals can be shown, and the officer or related agencies will only keep a copy.
Time and cost: 1 day, MNT 200,000
Notary fees according to the following schedule (Value of contract (in MNT)):
- 1.000,001 to 10.000,000: MNT 10,000
- 10.000,001 to 25.000,000: MNT 25,000
- 25.000,001 to 100.000,000: MNT 50,000
- 100.000,001 to 300.000,000: MNT 100,000
- 300.000,001 to 500.000,000: MNT 200,000
- 500.000,001 or above: MNT 300,000
Payment of Income or Transfer Tax at a commercial bank
Agency: Commercial Bank
Under Article 21.6 of the Corporate Income Tax Law, the seller shall withhold the tax imposed on income from the sale of immovable property and transfer the withholding to the Budget (relevant local tax authority) within 10 business days upon the sale of the property.
However, in practice, this tax has to be paid, and a receipt acknowledging the payment of income tax has to be submitted to the Immovable Property Rights Registration Office for Procedure 4.
Time and cost: Less than 1 day (online), MNT 9,018,728.56 (2% of property value)
Submit the application to the Immovable Property Registration Agency
Agency: Immovable Property Registration Office (General Authority for Intellectual Property and State Registration)
Parties submit relevant materials to the Immovable 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 5 days after the Registration Agency analyzes all the documentation presented (following the normal procedure), 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
- The original tax paid slip for income taxes paid at the district tax office
- Receipt of acknowledgment for the tax payment for immovable property sale (obtained in Procedure 3)
- Copies of ID cards of citizens representing the parties
- Copies of state registration certificates, charter and shareholders’ agreement (if any) of the company
- Payment slip for service fees
Time and cost: 1 day, MNT 40,000 (Standard service fee MNT 20.000, rush delivery fee MNT 40.000)
Transfer of the land use right at the City Governance Authority
Agency: City Governance Authority
Ownership of the land belongs to the State. When a seller company has land use right over the land where the immovable property is located, the land use right cannot be transferred to a purchasing party under relevant existing laws of Mongolia. However, in practice, land authority allows the transfer of land use right from one to another based on a transfer agreement.
As the land ownership, after the transfer of the title of the immovable property, the purchaser shall make an application to the Land Department of the relevant district to transfer the Land use right to the purchaser’s name.
Documentation for registration of land use right transfer shall include the following:
- Non-encumbrance certificate (obtained in Procedure 1),
- Request of both parties,
- Notarized transfer agreement of land use right,
- Notarized ID card of citizen,
- Notarized state registration certificate,
- Charter or shareholders’ agreement of a legal entity,
- Copy of ID card of CEO or another authorized person of a legal entity,
- Original land use right certificate with the land use agreement and the copy of governor’s order,
- Original cadastral map,
- Land fee payment slips and settlement act,
- Immovable property registration certificate (already in possession of seller),
- Photo of the immovable property taken from 4 sides of the immovable property,
- Payslip for the service fee,
- Copy of power of attorney, if required.
Time and cost: 7 days, MNT 70,000 (for a new certificate)
