Mongolian Properties - Real estate in Mongolia | Property Ownership and the Law - At this current stage the law is very much in f...

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Property Ownership and the Law

At this current stage the law is very much in favour of Property Owners in Mongolia, there are no restrictions on foreign ownership and very few things to scare you but see below for more detailed explanations on various aspects of the law regarding property ownership

Restrictions on Foreign Ownership

There currently are no restrictions whatsoever on foreign residents or even non-residents owning property in Mongolia. Certified copies of the buyers passports have to be submitted to the Property Registration Office along with the demand for a new certificate. It is highly unlikely that this state of affairs will change any time soon.

Laws Governing the Sale and Ownership of Land

Only Mongolians have the right to purchase and own land. Mongolian companies also have this right. Every Mongolian is given three basic rights to land, they are known as follows

Free right to land for living purposes

Every Mongolian is born with a right to be given free land to live on. Of course it is very rare that land is given freely in the city centre. It is never the less a right which is being claimed in the ger district. This right to free land normal applies only in your Aimag (province) of birth and is allocated to you by the Aimag authorities.

Priority rights to land

Mongolian Public institutions such as schools, universities, hospitals and libraries have a priority right to any land in Mongolia. They have a set period before the start of any auction to apply this right.

Land Auctions

Every land lease coming up for sale is auctioned at a public auction where any Mongolian can bid for the rights to the land. Restrictions are always applicable to such rights. The owner of the lease has to make use of the land within a certain period of time before the land is put back into auction. This is to prevent long term speculations on land and to force developers to start developing the land and make full use of it.

General Property Laws

All Residential Property in Mongolia is termed as a floating freehold. This means that the land on which the property sits is long term leased while the property itself is considered to be freehold. This is a common system in many of the old Soviet Satellite countries such as Mongolia, the Czech Republic, Hungary, Bulgaria etc... In practice what this means is that your property is entirely a freehold property, no one (not even the Government) can take it away from you. What it means is that no one actually pays or bothers about the land lease since the property protected by your ownership certificate and Mongolian law is secure. Most developers give the land back to the government once construction has been completed as any piece of land with a property certificate linked to it cannot be used or leased to any party that does not own all of the certificates linked to it.

Judicial Protection and the System in Mongolia

The Judicial system in Mongolia is still very much in its infancy, there are as can be expected corruption and intimidation problems but the Government is working hard to resolve all issues and set up a more credible system. In any case property ownership is better protected in Mongolia than in many former Communist country and much better than in neighbouring China (and maybe even Russia).

What are these?