WARNING!!

Once upon a time some twenty-old years ago, western businessman worned us, taht Tax Board and Banks are their biggest enemies. We soon found out that the Tax Board really is an enemy, but it was only recently that we lost our trust in banks....



12.01.2011 E24. The number of enforced sales may be higher than presumed


According to the Land Register, the number of enforced sales in the last year was 1409, which is two and a half times more than in 2009. However, the actual number of people who have lost their property may be even higher.

Namely, the figures in the Land Register only represent the enforced sales where the property changed owners on the basis of a bailiff's application. An amendment to law entered into force last year, which allows people to use bank loans to buy property at auctions – it was not possible before.
In cases like these, the bank who grants the loan sends the papers to the notary, who then sends an application to the Land Register. This means that these enforced sales are not recognised as transactions concluded by bailiffs and they become part of overall property statistics, which makes it difficult to highlight them separately.

Member of the Management Board of the Estonian Chamber of Bailiffs and Trustees in Bankruptcy Mati Kadak said that transactions where a property on enforced sale was purchased with a bank loan comprised one half of his total portfolio last year. "Financing purchases with loans became rather popular last year", he noted.

716 of the 1409 proven enforced sales in the last year concerned property taken from private persons to cover their debts and 693 concerned legal entities. The relevant figures in Tallinn were 197 and 266, respectively.

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