Completion Time Frame: 1 day
Completion Costs: no cost
Points to Note:
The purchaser should verify at the Registry whether the property is affected by any encumbrances. The Registry is computerized and located in the Municipality. Since 2005 it has been decentralized to 10 subcities.

Step 2: Check at the Master Plan Bureau the location and surface area of the property

Completion Time Frame: 5 days
Completion Costs: ETB 50
Points to Note:
The purchaser must check at the Master Plan Bureau the location and surface area of the property. This is also in the Municipality, but only has one office, and is not decentralized.

Step 3: Evaluation of the property by an independent valuer

Completion Time Frame: 10-15 days (simultaneous with procedure 4)
Completion Costs: ETB 1,000 (or a percentage of the value he determines)
Points to Note:
It is common practice to do a proper evaluation of the property by an independent valuer.
It takes about 5 days to arrange for the onsite visit and another 5-10 days to obtain the final evaluation.

Step 4: Receive onsite visit by independent valuer

Completion Time Frame: 1-5 days (simultaneous with procedure 3)
Completion Costs: no cost
Points to Note:

Step 5: The seller must obtain tax clearance from Tax Authorities

Completion Time Frame: 2 days
Completion Costs: no cost
Points to Note:
The seller must obtain tax clearance on the property (not income tax) from Tax Authorities for transfer tax. This institution has also decentralized.

Step 6: Obtain water utility clearance from the local Water Company

Completion Time Frame: 1 day
Completion Costs: no cost
Points to Note:
The seller must obtain water utility clearance from the local Water Company.

Step 7: Obtain energy utility clearance from the local Energy Company

Completion Time Frame: 1 day
Completion Costs: no cost
Points to Note:
The seller must obtain energy utility clearance from the local Energy Company.

Step 8: Obtain an up-to-date business license at the Municipality

Completion Time Frame: 1 day
Completion Costs: ETB 80
Points to Note:
The seller must be in possession of an up-to-date business license at the Municipality, or the Ministry of Trade and Commerce, or possibly a regional authority. This can only be obtained on submission of tax and utilities clearance. This is a check to see who in the company has the authority to sell and requires the resolution to sell (notarized in advance of the transfer).

Step 9: Pay capital gains tax at Inland Revenue Service

Completion Time Frame: 1 day
Completion Costs: The tax amount is calculated based on a set scale.
Points to Note:

Step 10: Execution of the sale contract before a notary public

Completion Time Frame: 2-3 days
Completion Costs: ETB 15 per copy (3 copies, registration fee)
Points to Note:
The seller and the purchaser have to sign a sale contract before a notary public.
The parties exchange the money in full for payment of the property. To do so, each of them have to produce the memorandum and articles of association of their respective companies, power of attorney authorizing him/her to sign the sale contract (not necessary if the owner of the land is the signing party) and two witnesses. The property registration fee is paid at the notary public, who verifies that all taxes and obligations have been paid before authenticating the contract. Sometimes the sale contract is prepared by a lawyer (attorney fees would be approximately ETB 2000), but it is not legally required.

Step 11: Apply for the registration of the property

Completion Time Frame: 1-2 days
Completion Costs: Already paid in Step 12
Points to Note:
After payment of the registration fee, the purchaser must proceed to apply for registration of the property at the subcity registry.

Step 12: Pay municipal transfer tax and obtain receipt

Completion Time Frame: 1 day
Completion Costs: 6% of purchase price
Points to Note:
Payment is done at the municipal tax office.

Step 13: Finalize registration of property and obtain title deed in the buyer’s name

Completion Time Frame: 14 days
Completion Costs: Included in previous procedures.
Points to Note:
The seller returns to the registration office with the receipts obtained and the title deed in his name.