Plots and construction

Available plots in Palojoensuu on the map (Paikkatietoikkuna map publication)
Available plots in Peltovuoma on the map (Paikkatietoikkuna map publication)

The municipal council has decided on the current terms and conditions for the reservation and transfer of plots on 22 March 2023, Section 36.

Plots can be released for reservation once the pricing decision for the area is legally valid. As a rule, plots can be reserved on the principle of continuous application, whereby the plots are reserved for applicants in the order in which their reservation applications are received. Some of the plots can be put up for general application for a fixed period (see sections 1.4. and 2.4.). Holiday home and business plots can also be sold based on competitive tenders. Plots for detached houses are intended for permanent residence and the municipality aims to offer them to the residents of Enontekiö at a reasonable price.

1. General terms and conditions for the reservation and transfer of detached house plots and holiday home plots

1.1. Making a reservation

Reservations can be made at any time. The reservation application must be submitted in writing and delivered to the Enontekiö municipal registry office. A decision by an official will be made regarding the reservation of plots for detached houses or holiday homes.

Each household or business can only have one detached house or holiday home plot reserved at a time. Plots will not be sold or leased to parties who already have undeveloped plots for the same purpose.

1.2. Reservation procedure and reservation fee

The reservation is binding once the municipality and the plot applicant sign the reservation agreement (this can be done electronically) and the reservation fee is paid. The reservation fee for detached house and holiday home plots is 3% of the purchase price or a minimum of €300. The reservation fee will be credited towards the purchase price, but not the rent. If the official decision does not gain legal validity, the reservation will be cancelled, and the reservation fee will be refunded to the applicant. Otherwise, the reservation is valid for twelve (12) months. The reservation cannot be transferred to another party. It is also possible to sell or lease the plot without a reservation procedure.

If the reservation is cancelled, the reservation fee will not be refunded to the applicant. The transfer of the plot (purchase or lease) must be requested during the reservation agreement's validity period. If plot transfer has not been requested before the end of the reservation period, the reservation is deemed expired. If a reserved plot is released, it will be put up for general application. It is not possible to queue for plots that may become available.

1.3. Continuation of reservation

A reservation may be granted an extension of up to 12 months at the applicant's request, and an additional reservation fee will be charged for the extension period. There must be a justified and acceptable reason for extending the reservation period.

1.4. Reservation procedure for a new area or alteration of town plan area

New plots can be put up for general application for a fixed period. The application period is a minimum of two weeks. Information on fixed-period application is published on the municipality's website and in the local newspaper. If there are several applicants for the same plot during the application period, the plot recipient is selected by drawing lots. Owners of undeveloped plots for the same purpose, and those who have purchased or leased a holiday home or small house plot from the municipality of Enontekiö in the last three years, are not eligible in the fixed-term application. A company can also apply for a plot, but private individuals have priority if the plot recipient needs to be selected by drawing lots. Applications received outside the application period will not be considered in the draw. Plots that remain vacant after the fixed-term application will be transferred to continuous application.

1.5. Sale or lease of plots

Plots within the reservation procedure can be purchased or leased. The sales contract or land lease agreement must be signed within the time specified by the municipality after the plot transfer decision has gained legal force, unless otherwise agreed for a special reason. If signing the sales contract or land lease agreement is delayed without an acceptable reason, the made decision will lapse, and the municipality has the right to transfer the plot to another applicant. The reservation fee will not be refunded due to a lapsed transfer decision.

The buyer is responsible for the real estate formation costs, the fee of the sales contract notary, the transfer tax, and the costs incurred by entry into the land register.

In land lease agreements for detached house and holiday home plots, the lease term is 30 years, and the annual rent is 6% of the plot's purchase price, tied to the index point number of the cost-of-living index known on the date of signing the lease agreement. The rent is adjusted annually so that the adjustment index is the index number for October of each year. The index is not adjusted downwards. The lessee can redeem the plot once the obligation to build is fulfilled. Paid annual rents will not be credited later when the plot is purchased.

The rights and obligations of the plot recipient are finally agreed in the sales contract or land lease agreement. Sales contracts and land lease agreements are drawn up in compliance with the attached models but, if necessary, it is possible to modify the agreement terms on a case-by-case basis.

1.6. Obligation to build and contractual penalty

The transferee undertakes to use the building site to build a residential building in accordance with the town plan, building regulations, and approved drawings within three years of signing the sales contract or land lease agreement, to a degree of completion that the building inspection authority can carry out an acceptable commissioning inspection as required by the Land Use and Building Act. For special reasons, the municipality may grant an extension to the construction time by written application.

A contractual penalty will be charged for the period of delay for breaching the obligation to build. As to plots for sale, the contractual penalty is 20% of the property's purchase price after the deadline expires for each commencing 12-month period until the obligation to build is fulfilled. For leased plots, the municipality has the right to terminate the land lease agreement if the lessee neglects the above-mentioned obligation to build. Agreement termination must be carried out within three months after the deadline set for fulfilling the obligation expires.

1.7. Restriction on property rights and contractual penalty

The buyer may not transfer the designated area or the plot formed from it, undeveloped or partially developed, unless the municipality agrees to this in writing. If the plot is transferred undeveloped, the buyer undertakes to include the condition in section 1.6 in the transfer deed. In this case, the obligation to build and possible contractual penalty will be transferred to the new owner.

If the buyer transfers the designated area or the plot formed from it undeveloped and therefore in violation of the agreement, they are obliged to pay the municipality a contractual penalty of twice the purchase price.

The municipality may release the transferee, either in whole or in part, from the payment of the contractual penalty referred to in this section.

1.8. Purpose of use

The building supervision authority has the power to prohibit, under penalty of fine, use that is contrary to a building permit under Section 182 of the Land Use and Building Act in cases where a dwelling is used in non-compliance with the building permit.

2. General terms and conditions for the reservation and transfer of business plots

In this context, a business plot refers to a building site that allows industrial, commercial, or service construction that caters for business activities. The terms and conditions for the reservation and transfer of business plots also apply to apartment building and terraced house plots.

2.1. Making a reservation

Reservations can be made at any time. The reservation application must be submitted in writing and delivered to the Enontekiö municipal registry office. The reservation can be made in the name of a business to be set up or an already existing business. Making reservations is allowed only for the founding members of the company (company to be set up), or those shown on the extract from the Trade Register, and/or those with authority to sign, and the reservation cannot be transferred to a third party. An office-holder's decision will be made regarding business plot reservations.

The applicant may have several business plots reserved at the same time, provided that the extent or form of the business activity indicates that more than one building site is needed for operation.

2.2. Reservation procedure and reservation fee

The reservation is binding once the municipality and the plot applicant sign the reservation agreement (this can be done electronically) and the reservation fee is paid. The reservation fee for business plots is 3% of the purchase price or a minimum of 1,000 euros. The reservation fee will be credited towards the purchase price, but not the rent. If the official decision does not gain legal validity, the reservation will be cancelled, and the reservation fee will be refunded to the applicant. Otherwise, the reservation is valid for twelve (12) months. The reservation cannot be transferred to another party. It is also possible to sell or lease the plot without a reservation procedure.

If the reservation is cancelled, the reservation fee will not be refunded to the applicant. The transfer of the plot (purchase or lease) must be requested during the reservation agreement's validity period. If plot transfer has not been requested before the end of the reservation period, the reservation is deemed expired. If a reserved plot is released, it will be put up for general application. It is not possible to queue for plots that may become available.

2.3. Continuation of reservation

A reservation may be granted an extension of up to 12 months at the applicant's request, and an additional reservation fee will be charged for the extension period. There must be a justified and acceptable reason for extending the reservation period.

2.4. Reservation procedure for a new area or alteration of town plan area

New plots can be put up for general application for a fixed period. The application period is a minimum of two weeks. Information on fixed-period application is published on the municipality's website and in the local newspaper. If there are several applicants for the same plot during the application period, the plot recipient is selected by drawing lots. Owners of undeveloped plots for similar uses are not eligible to apply in fixed-term applications. Applications received outside the application period will not be considered in the draw. Plots that remain vacant after the fixed-term application will be transferred to continuous application.

2.5. Sale or lease of plots

Plots within the reservation procedure can be purchased or leased. The sales contract or land lease agreement must be signed within the time specified by the municipality after the plot transfer decision has gained legal force, unless otherwise agreed for a special reason. If signing the sales contract or land lease agreement is delayed without an acceptable reason, the made decision will lapse, and the municipality has the right to transfer the plot to another applicant. The reservation fee will not be refunded due to a lapsed transfer decision.

The buyer is responsible for the real estate formation costs, the fee of the sales contract notary, the transfer tax, and the costs incurred by entry into the land register.

In land lease agreements for business plots, the lease term period is a maximum of 30 years. The annual rent is 6% of the plot's purchase price, tied to the cost-of-living index value known on the date of signing the lease agreement. The rent is adjusted annually so that the adjustment index is the index number for October of each year. The index is not adjusted downwards. The lessee can redeem the plot once the obligation to build is fulfilled. Paid annual rents will not be credited later when the plot is purchased.

The rights and obligations of the plot recipient are finally agreed in the sales contract or land lease agreement. Sales contracts and land lease agreements are drawn up in compliance with the attached models but, if necessary, it is possible to modify the agreement terms on a case-by-case basis.

2.6. Obligation to build and contractual penalty

The transferee undertakes to build new buildings on the building site in accordance with the town plan, building regulations and approved drawings, the combined floor area of which is at least 60% of the maximum building entitlement under the plan. The buildings must be completed within three years of signing the sales contract or land lease agreement to a degree of completion that the building inspection authority can carry out an acceptable commissioning inspection as required by the Land Use and Building Act. For special reasons, the municipality may grant an extension to the construction time by written application.

A contractual penalty will be charged for the period of delay for breaching the obligation to build. As to plots for sale, the contractual penalty is 30% of the property's purchase price after the deadline expires for each commencing 12-month period until the obligation to build is fulfilled. For leased plots, the municipality has the right to terminate the land lease agreement if the lessee neglects the above-mentioned obligation to build. Agreement termination must be carried out within three months after the deadline set for fulfilling the obligation expires.

2.7. Restriction on property rights and contractual penalty

The buyer may not transfer the designated area or the plot formed from it, undeveloped or partially developed, unless the municipality agrees to this in writing. If the plot is transferred undeveloped, the buyer undertakes to include the condition in section 2.6 in the transfer deed. In this case, the obligation to build and possible contractual penalty will be transferred to the new owner.

If the buyer transfers the designated area or the plot formed from it undeveloped and therefore in violation of the agreement, they are obliged to pay the municipality a contractual penalty of twice the purchase price.

The municipality may release the transferee, either in whole or in part, from the payment of the contractual penalty referred to in this section.

2.8. Purpose of use

The building supervision authority has the power to prohibit, under penalty of fine, use that is contrary to a building permit under Section 182 of the Land Use and Building Act in cases where a dwelling is used in non-compliance with the building permit.

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