When buying a property in Latvia, the first step is signing a presales agreement. The buyer will then deposit 10% of the property value in an escrow account managed by the notary.
After the real estate due diligence process that will ensure the buyer that the property he or she is about to buy is free of any encumbrances, the seller and the buyer will sign the final agreement and the buyer will take possession of the new property. The next step will be to register the new title with the Land Registry in Latvia. All properties in Latvia are registered in the Land Registry that belongs to the Latvian Ministry of Justice.
The Land Registry offers to future buyers the opportunity to verify the title of a property and all its legal rights. In order to receive a copy of the title, the buyer must submit an application form together with the confirmation of the fee payment. All land records can be accessed online nowadays.
Municipality first refusal rights in Latvia
The sales agreement must be submitted with the Latvian municipality for a resolution on first refusal rights. If the property is not needed for municipal functions, the municipality will emit a statement relinquishing the right of first refusal. The statement will be issued in five working days from receiving a copy of the sales agreement. However, the process can take up to 20 days in case the municipality has any duties to perform regarding the real estate.
In case of commercial real estate, the management board of the buyer will be required to issue a statement regarding the nationality of the shareholders.
If you want to purchase a commercial real estate in order to start a business, you can contact our law firm in Latvia for details about the registration process.
Notarization of the sales agreements in Latvia
After the seller and the buyer have concluded the final sale agreement, the notary will certify the application for the registration of the title with the Land Registry. The application will also include an authorization for the person in charge with the registration proceedings.
If no authorization has been issued, a power of attorney can be issued for the notary to continue with the registration process.
Registration of the property title in Latvia
After submitting all required documents, a land book judge will revise all the documents and decide on the registration of the new property title. A true copy of the decision signed and attested by a judge and a secretary of the Latvian Land Book will be emitted. The entry in the Land Registry will be made the next day after the decision and it will also be signed by the judge and the secretary.
If you want to register commercial real estate with the Land Registry and you need information, our lawyers in Latvia can guide you through the process.
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