Real Estate in Latvia - Purchase process
Purchasing real estate is a serious process, which requires consideration of a great deal of legal matters. Taking into account things such as that, all documents must be filled in latvian, and the many issues that require specific knowledge in order to make things move quickly, we highly recommend you to hire professional, who will help you with the procedure. If you want to save your time and money, you can make a power of attorney, so that another person can take care of everything on your behalf. However, in this case, you will still need to visit Latvia in order to submit your documents to the Land register department personally.
What you should do before purchasing real estate?
This step is optional, however, we highly recommend you to do so. Before signing a purchase contract it is best to check real estate for any liens orrestrictions (servitutes, loans, credits e.t.c.). This formal procedure will ensure you that your chosen real estate does not come with any nasty financial surprises, and it is safe to purchase. Also, this can prevent you from having legal issues or judicial claims brought against you in future. This procedure can be done for you by the companies providing legal services.
Also, you better make sure, that the seller has the right to sell this property. You can also inquire about utility payments (are they all paid) and declared persons (if this is flat).
The procedure of purchase of real estate
This is step by step procedure of purchasing real estate in Latvia.
STEP 1 – Purchase contract
In order to purchase real estate property you do need to sign purchase contract. This must be done in written form with a notarial assurance.
STEP 2 - Request for corroboration for сhange of ownership
This document must be signed with notarial assurance as well. This is a standard document, which is submitted to Land register department, requesting change of ownership rights. Notarially assured purchase contract – is ground for doing so.
STEP 3 – Payment for the real estate
There are seveal models of payment:
- Payment at the moment of signing the contract;
- Payment at the moment of signing request for corroboration for сhange of ownership;
- Partial payment before and partial payment after corroboration of ownership rights;
- Opening an escrow account in the bank.
STEP 4 – Payment of processing fees and real estate tax
Processing fees estimate around LVL 20. Real estate tax estimates 2% from the cost of real estate. It has to be paid by the buyer.
STEP 5 – Submit of the documents
At this point, all the aforementioned documents and payment bills must be submitted to the Land register department.
STEP 6 – Results
It usually takes 14 working days to get the request for corroboration for сhange of ownership approved or cancelled. Normally, in 14 working days, your ownership rights will be corroborated and you can come and receive your Land Register certficate.
NB! Foreigner who fit in specific conditions may apply for residence permit in Latvia.
We can help you with this procedure. Our lawyers will provide you support on preparing the documents and submitting them to the officials. If you have any questions – contact us now.