ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN LATVIA]

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information and technical encumbrances, are held in this register. However, not all encumbrances prescribed by law are actually registered in the registers, for example, protection zones and consequential restrictions and limitations are set by law, notwithstanding whether they are registered with the Land Registry and/or Cadastral Registry, therefore the actual situation on site shall be considered prior to the acquisition of the real estate. In practice, frequently the information in the Cadastral Registry differs from the information in the Land Registry. The law also specifies buildings and structures, which are not registered in the Land Registry as separate and independent objects of property, for example - fences, small buildings, except for garages, linear engineering structures, except for transport structures, engineering structures the area of which is less than 50 square metres or height is less than 10 metres. But some transport structures, such buildings and structures are registered in the Cadastral Registry. Therefore, to obtain more detailed information on the real estate, the information in both registries – the Land Registry and the Cadastral Registry should be reviewed and considered prior to the acquisition of the real estate. VI. Agreement and re-registration of the title with the Land Registry Any transfer of the title of the real estate should be registered with the Land Registry. Agreement on alienating the real estate should be prepared in writing and signed by both parties personally. It should be also noted that an oral agreement is binding to the parties, and each party is entitled to claim from the

other party to express the oral agreement in a written form. It is not required, but signatures of the contracting parties on the agreement could be certified by a notary public, as well as an agreement could be concluded in the form of notary deed. Recently there have been discussions on establishment of a requirement that all real estate transactions should be concluded in the form of a notary deed. Agreement on alienation of real estate is binding upon the parties from the moment of its conclusion, but for any third party, only a person, whose ownership rights have been registered with the Land Registry, shall be considered as the owner of real estate. The title (ownership) is transferred to the buyer from the moment of re-registration of the title with the Land Registry (i.e., a Land Registry judge has adopted a decision on registration of the buyer’s title). This rule would be always applicable in relation to reliance of third parties on the owner of real estate; however, the contracting parties may agree otherwise on the moment of transfer of title. To re-register the title with the Land Registry, the registration request to the Land Registry on the transfer of the title should be personally signed before a notary public chosen by the contracting parties. This can be done in person at a notary's place of practice or remotely, using video conferencing mode and signing necessary documents electronically with a secure digital signature with a time stamp. The notary verifies the identity of both parties, and in case of legal entity also the rights to represent the legal entity. The persons signing the registration request need to provide proof

ILN Real Estate Group – Buying and Selling Real Estate Series

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