The Property Banks Buyers Guide to Mongolia
STANDARDIZED PROPERTY
Property value: 43,361,779
City: Ulan Bator
Registration Requirements:
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)
Comment: The seller shall obtain, 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 0.5%
of value of contract From 1,000,001 to 10,000,000 MNT 10,000 From
10,000,001 to 25,000,000 MNT 25,000 From 25,000,001 to 100,000,000
MNT 50,000 From 100,000,001 to 300,000,000 MNT 100,000 Above
300,000,000 MNT 200,000
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. Thus calculation shall
be made only for building. As to the land ownership the purchaser
after the duly 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 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
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 that is
realized from the sale of an asset that was previously purchased at
a lower price. 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 (normal procedure) or 1 day (urgent
procedure)
Cost to complete: MNT 13,000 (normal procedure); the service fee for
the urgent procedure depends on the property value according to the
following schedule: Contract value (in MNT) Urgent service fee (in
MNT) Up to 10,000,000 MNT 21,000 From 10,000,001 to 100,000,000 MNT
30,000 Over 100,000,000 MNT 55,000
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: approx MNT 7,000 fee for new certificate.
Comment: Ownership of the land belongs to the state. Only Mongolian
citizens have begun to 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.