[BUYING AND SELLING REAL ESTATE IN LATVIA]
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KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER LATVIAN LAW I. STANDARD FORMS OF AGREEMENT
B. Commercial property: Before buying the property, the buyer will normally conduct due diligence on the real estate. Also, parties usually prepare and sign a deed of delivery and acceptance.
A. Offer to Purchase sets forth Buyer's offer of price and date for closing. Seller may accept or reject. B. The purchase contract sets forth the terms of purchase and sale, including other things - participants in the transaction, price, allocation of costs of the transaction, settlement procedure, date for closing, encumbrance, and default provisions, and transfer of ownership. II. BROKERS A. Buyers and sellers are not required to use services of real estate brokers; however, parties may use such services. Broker services may be provided only by such individual person who has been included in the Register of Real Estate Agents. Currently the general commission fee in the market does not exceed five% (depending on the value of the transaction). B. Usually, the seller pays the broker's commission, but parties may agree otherwise. III. BUYERS INSPECTION The seller shall be liable to the buyer that the real estate has no hidden defects, and it possesses all the good qualities which are warranted or presumed. Defects which the buyer should have discovered before buying the real estate cannot be claimed, thus inspection of the real estate is advisable. A. Residential property: Parties usually prepare and sign a deed of delivery and acceptance so confirming the condition of the real estate at the time of its acceptance.
IV. TYPES OF REAL ESTATE A. Types of real estates are: 1. Land estate Consists of one or several land plots. 2. Land and building estate
Consists of one or several land plots and one or several buildings or structures located on the land plot (plots). 3. Building estate Consists of one or several buildings or structures. In case of a building estate, the land plot, on which the respective buildings or structures are located, is owned by another person, and does not belong to the owner of the building estate (please see Section C. Divided estate , in this paragraph). 4. Residential estate Consists of a an individual property (apartment, nonresidential premises, or artist's workshop in a residential house) in a residential building; and b the relevant undivided share of the joint property (external enclosing structures, internal load bearing constructions and intermediate coverings of the residential house, premises for common use, engineering communication systems, devices servicing the residential building and other indivisible elements functionally associated with
ILN Real Estate Group – Buying and Selling Real Estate Series
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