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Notarisation of pledges becomes cheaper

05.01.2006

On January 1 2006 the Notary Fees Act was amended by an act passed by Parliament on October 12 2005. As a result, the notorisation of pledges has become cheaper due to changes to the method of calculating notary fees.

Notary fees in Estonia are generally calculated as a percentage of the transaction value. Previously, the transaction value in securing a claim was the value of the secured claim. However, following the amendments, where the value of the pledge is greater than the value of the claim the transaction value will be two-thirds of the value of the pledge.

For instance, if a claim of less than €5 million can be secured with a floating charge of €5 million, the base figure for calculating notary fees will be approximately €3.33 million, rather than €5 million. The respective notary fees would then be approximately €7,700, rather than the previous figure of €9,400.

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