otsekanne

Otsekanne is a Finnish term referring to a direct property transfer without a sale. This typically occurs between family members, such as a parent gifting a property to a child, or through inheritance. In an otsekanne, the property's ownership is transferred directly from one individual or entity to another without any monetary exchange at the time of the transfer, though a nominal fee may be charged to cover administrative costs.

The process of otsekanne involves updating the property's title deed in the Land Register. This requires the parties involved to submit a formal application to the relevant land registry office, along with necessary documentation. This documentation usually includes the original title deed, proof of identity for both parties, and a deed of gift or a similar legal instrument specifying the terms of the transfer.

While no purchase price is exchanged, the recipient of the property may still be liable for capital transfer tax depending on the jurisdiction and the relationship between the transferor and transferee. Gift tax regulations often apply in such scenarios. Otsekanne is a common way to manage family assets and ensure smooth succession planning for real estate. It simplifies the transfer process compared to a traditional sale, especially when the intent is to gift or pass on property within a family.