Buying a Home in Mongolia

Buying a home in a foreign country can be a daunting task, especially in a country as unique and diverse as Mongolia. This guide aims to provide expats with a comprehensive understanding of the process, from finding a property to the final purchase. It will cover key topics such as finding houses for sale, understanding the restrictions on foreign ownership, the role of brokers and lawyers, the necessary documents, financing options, inspections, and potential pitfalls to avoid.

How do I find houses for sale in Mongolia?

There are several ways to find houses for sale in Mongolia. Online property portals are a popular choice, with websites like Mongolian Properties and Real Estate Mongolia offering a wide range of listings. Local newspapers and real estate agencies are also good sources of information. It's also common to hire a local real estate agent who can guide you through the process and help negotiate the best deal.

Are there restrictions on foreigners owning property in Mongolia?

Yes, there are restrictions on foreigners owning property in Mongolia. According to the Mongolian Law on Land, foreigners cannot own land, but they can own buildings or structures on the land. This means that foreigners can buy apartments or houses, but not the land on which they are built. However, foreigners can lease land for up to 60 years, and this lease can be extended for another 40 years. It's also possible to set up a Mongolian company to buy land, but this involves additional legal and financial complexities.

Does Mongolia have an MLS type system?

Mongolia does not have a Multiple Listing Service (MLS) like in the United States. Instead, real estate agencies maintain their own databases of properties for sale. This means that buyers may need to check with multiple agencies to find all available properties.

Do brokers have licenses and how do I know if they are licensed?

Yes, real estate brokers in Mongolia are required to have a license. The Mongolian National Association of Realtors (MNAR) is responsible for licensing and regulating real estate professionals. You can verify a broker's license by checking with the MNAR or asking the broker to provide proof of their license.

What documents are required when buying a home?

When buying a home in Mongolia, you will need several documents. These include a valid passport, a purchase agreement, a property valuation report, and proof of payment. If you're buying through a company, you'll also need the company's registration certificate. All documents must be translated into Mongolian and notarized.

Do I need a lawyer when buying a home in Mongolia?

While it's not legally required, it's highly recommended to hire a lawyer when buying a home in Mongolia. A lawyer can help you understand the legal complexities, ensure all documents are in order, and protect your interests during negotiations. The cost of a lawyer can vary, but you should expect to pay around 1-2% of the property's purchase price.

Do people typically buy a property with all cash or take out a mortgage?

Both options are common in Mongolia. Some buyers prefer to pay in cash, especially for cheaper properties. However, mortgages are also available, and many banks offer loans to foreigners. The interest rates can be high, so it's important to compare different banks and choose the best deal.

Are there inspections that take place, and if so what is that process like?

Yes, inspections are a crucial part of the home buying process in Mongolia. A professional inspector will check the property for any structural issues, electrical problems, plumbing issues, and other potential problems. The buyer is typically responsible for arranging and paying for the inspection.

What are some of the pitfalls to avoid when buying property in Mongolia?

One of the main pitfalls to avoid is buying property without thoroughly checking the title. It's essential to ensure that the seller has the legal right to sell the property and that there are no outstanding liens or disputes. Other pitfalls include not understanding the local real estate market, not considering the location carefully, and not factoring in additional costs such as maintenance fees and property taxes.